Impact of Market-Based and Grid-Friendly Flexibility Behaviors on Grid Utilization and Grid Expansion Planning

Abstract:
In this paper, a methodology for analyzing the impact of market-based and grid-friendly incentives on grid expansion costs is presented, applied in a case study on a generic low-voltage grid and compared with a reference study [1]. Both the case study and [1] showed that market-based, dynamic tariffs lead to higher grid loads and rising grid expansion costs. The grid loads as well as the grid expansion costs could be reduced again by iteratively determining grid fees for the individual prosumers. The additional costs resulting from the use of flexibility on the grid side could be reduced by almost 50 % through iteratively determined dynamic grid fees. In this iterative process, after the grid fee time series has been sent to the first prosumer, a new power flow calculation is carried out based on the forecast before the next grid fee time series is determined and sent to the next prosumer. This ensures that the individual prosumers receive different price signals. A simultaneous and non-iterative determination of grid fees continues to send uniform price incentives. As a result, cost reductions are not achieved.