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Utilization of Electrical Energy Storage with Power-Based Distribution Tariffs in Households

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Original languageEnglish
JournalIEEE Transactions on Power Systems
Publication statusPublished - 5 Nov 2018
Publication typeA1 Journal article-refereed


Energy storage enables modification of the customer load profile from the grid perspective without leading to a decrease in comfort level. To meet the future challenges of the energy sector, distribution system operators (DSOs) in Finland have recently discussed power-based distribution tariffs (PBDTs) for small customers. The current distribution tariffs of small customers do not respond well to current challenges, and they require reform. The peak powers of the customers can be decreased with energy storage, and via incentives included in the PBDTs, energy storage can prove to be profitable for household customers. In this paper, we study the profitability of electrical energy storage under different pricing structures. The study simulates changes in customer consumption with a modeled storage system. Simulations consider the requirement of load forecasting in the storage control system. The results of the study show that energy storage can be profitable if the consumption includes only a small number of high peak loads during the pricing period when applying new distribution tariff structures. However, the price level of the tariffs and the tariff mechanisms affect the results.

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