Modeling Value Flows in Utility Rate Structures
As the increased adoption of distributed energy resources continues to challenge flat utility rate structures, time-varying rates and more dynamic mechanisms like transactive energy systems can better leverage customer-sited distributed energy resources to provide grid services. However, adopting new utility policies can be a timely process and requires a high level of transparency into the energy system. A wide range of stakeholders must understand who may be affected by policy changes and how. This work employs the valuation methodology developed under Pacific Northwest National Laboratory’s Transactive Systems Program to outline the functional differences in value flow under a series of conventional rate structures and a transactive energy system. The resulting value model illustrates the nuances that arise and highlights future avenues of work that will be necessary as utilities across the country continue to develop new rate structures and market mechanisms.