Mitigating the impact of distributed PV in a low-voltage grid using electricity tariffs

TL;DR

This paper explores how advanced electricity tariffs can mitigate over-voltage and overload issues caused by high PV penetration in low-voltage grids while balancing economic incentives for PV and storage investments.

Contribution

It analyzes the impact of different tariff structures on grid stability and investment incentives in low-voltage networks with high PV penetration.

Findings

Dynamic volumetric tariffs encourage PV and battery investments but increase grid stress.

Capacity and block rate tariffs reduce over-voltage and line loading issues.

Block rate tariffs limit the optimal size of PV installations.

Abstract

A high share of distributed photovoltaic (PV) generation in low-voltage networks may lead to over-voltage, and line/transformer overloading. To mitigate these issues, we investigate how advanced electricity tariffs could ensure safe grid operation hile enabling building owners to recover their investment in a PV and storage system. We show that dynamic volumetric electricity prices trigger economic opportunities for large investments in PV and battery capacity but lead to more pressure on the grid while capacity and block rate tariffs mitigate over-voltage and decrease line loading issues. However, block rate tariffs significantly decrease the optimal PV installation size.