Results for “electricity tariff”

DOE OSTI2020

Probabilistic impact of electricity tariffs on distribution grids considering adoption of solar and storage technologies

This study models the role of electricity tariffs on the long-term adoption of photovoltaic and storage technologies as well as the consequent impact on the distribution grid. An adoption model that captures the economic rationality of tariff-driven investments and considers the stochastic nature of individual consumers’ decisions is proposed. This model is then combined with a probabilistic load flow to evaluate the long-term impacts of the adoption on the voltage profiles of the distribution grid. To illustrate the methodology, different components of the electricity tariffs, including solar compensation mechanisms and time differentiation of Time-of-Use (ToU) rates, are evaluated, using a case study involving a section of a medium-voltage network with 118 nodes.

29 ENERGY PLANNING, POLICY, AND ECONOMY↗

DOE OSTI2024

Exploring impacts of electricity tariff on charging infrastructure planning: An activity-based approach

In the past decade, electric vehicles (EVs) have gained popularity for their efficiency and environmental benefits. Advances in battery technology and charging equipment have yielded long-range EVs and fast-charging. However, many major cities lack adequate charging infrastructure for daily EV use. This study addresses this gap by integrating activity-based modeling, charging behavior simulation, and charging infrastructure optimization. The research utilizes the POLARIS agent-based transportation model to accurately capture user activities, trip patterns, and traffic flows. Additionally, the study investigates the impact of fixed and spatiotemporal electricity rate distributions on optimal charging infrastructure deployment. The framework is applied to the Chicago regional area network and analyzed under various EV ownership scenarios. Further, the results reveal significant impacts of the charging pricing strategy on user decision-making and charging demand distribution. There is also a need for consistent pricing policies in charging infrastructure planning and operational phases to avoid drops in service quality.

29 ENERGY PLANNING, POLICY, AND ECONOMY↗

DOE OSTI2025

Backup power or bill savings? How electricity tariffs impact residential solar-plus-storage usage in the United States

Adoption of paired solar-plus-storage systems has accelerated in recent years, driven by both the demand for backup power and a desire to manage utility bills. Tradeoffs between those two uses can arise through the reserve setting on the battery storage system, which serves to maintain a minimum state of charge in case of a power interruption. Our paper applies an economic framework to evaluate this tradeoff in terms of changes in bill savings and customer reliability value across reserve levels, considering how those tradeoffs depend on the underlying electricity rate structure and levels. The analysis is based on a representative set of load profiles, solar profiles, tariff designs, and stochastic power interruption events across ten different regions in the United States. We find that the opportunity cost of holding storage capacity in reserve, in terms of foregone bill reductions, outweighs any gains in reliability value from mitigated power interruptions in the majority of customer situations. Higher storage reserve levels increase total customer value only in specific circumstances, such as for customers with inferior reliability (10x average interruptions), with a very high value of lost load ($50/kWh), and with tariff or interconnection rules that disallow grid charging. However, even this result is dampened when considering tariff designs with higher price differentials that increase the opportunity cost of holding storage in reserve (e.g. import/export or time-of-use rates). Allowing grid charging in tariffs essentially eliminates the necessity to hold any storage in reserve in all sensitivity cases explored.

Electric resilience↗

DOE OSTI2022

On Harmonizing Today’s Regulated Tariffs and Future Dynamic Electricity Pricing

A novel method for harmonizing the advantages of dynamic retail electricity pricing with the protections of regulated electricity tariffs is discussed and demonstrated. The method socializes and protects customers from long-term locational price variability that is unfair to those customers who are, by no fault of their own, served at congested locations on a distribution system. However, the method preserves short-term (e.g., diurnal) price variability that might induce helpful, mitigative responses from retail electricity customers. Because the method causes actual price recovery to track a customer class’s approved, regulated price recovery, the method may remove regulators’ objections to dynamic electricity pricing and thereby hasten adoption of market-based retail electricity pricing and transactive energy systems.

Consumer protection, Demand response, Market resea↗

DOE OSTI2022

A Case Study about Energy and Cost Impacts for Different Community Scenarios Using a Community-Scale Building Energy Modeling Tool

The United States building sector consumed approximately 75% of electricity in 2019. By implementing renewable energy technologies and control strategies into buildings, future buildings will serve as energy generators as well as consumers. To accommodate this transition, communications among buildings and between buildings and the grid could provide more possibilities to optimize the energy performance of buildings. This paper develops a community-scale building energy model tool and conducts a case study adopting behind-the-meter distributed energy resources, sharing energy in different buildings, and using different electricity tariff structures. Three scenarios are studied: (1) electricity only supplied by the grid, (2) photovoltaic (PV) panels installed on and available to some but not all buildings, and (3) a connected community. To consider the impacts of locations and energy tariffs, this paper selects four cities and three electricity tariffs to evaluate the energy and cost performances of these three scenarios. The results show that the PV panels in Scenario 2 reduce 25% to 33% of the community-level electricity consumption and 20% to 30% of the community-level electricity cost compared with Scenario 1 in all studied locations and energy tariffs. By considering power management in the connected community (Scenario 3), the electricity consumption and cost can be further reduced by 6% to 7% and 5% to 11%, respectively, compared with Scenario 2.

29 ENERGY PLANNING, POLICY, AND ECONOMY↗

DOE OSTI2022

Integrating Hydrogen Production and Electricity Markets: Analytical Insights from California

This report compares the cost of different pathways for producing hydrogen in California. In addition to capturing the current cost of electrolyzers and other equipment, the pathways apply current retail electricity tariff options offered by utilities Southern California Edison (SCE), Pacific Gas & Electric Company (PG&E), and San Diego Gas & Electric Company (SDG&E). The analysis also tests the cost of combining hydrogen production with utility-scale wind or solar generation in California. Scenarios examine current costs as well as projections for 2030. The cost benchmark - a relatively low electrolytic hydrogen production cost - is based on the wholesale price of electricity used by a theoretical hydrogen production plant connected directly to the California Independent System Operator (CAISO) transmission system. California law currently prohibits this approach in CAISO, but it is permissible in other organized wholesale electricity markets. The cost for producing hydrogen under 2019 conditions in this theoretical case was approximately $3/kg. Different scenarios are used to examine current costs, e.g., 2019, as well as projections for 2030.

08 HYDROGEN↗

DOE OSTI2022

Potential bill impacts of dynamic electricity pricing on California utility customers

The rapid growth of renewable generation is creating challenges for the California grid in the form of the “duck curve,” with increasingly steep ramping required for conventional generation resources in the morning and evening, and growing curtailment of solar resources in midday periods. Time-varying electricity tariffs have received considerable attention as a tool to address these challenges, with a renewed recent focus on the potential for dynamic tariffs that vary to reflect conditions on the grid in near-real time. Consideration of dynamic tariffs may raise concerns about the financial impact on utility customers, especially for those who have limited flexibility to modify their electricity consumption in response. Specific areas of concern include electricity bills, bill volatility, and equity implications related to cost shifting among customer groups. In this paper we leverage smart meter data for more than 400,000 California utility customers, spanning residential, commercial, industrial, and agricultural customers, to assess potential customer bill impacts arising from a multi-component dynamic tariff . Specifically, we compute impacts on customer bills and bill volatility under the assumption of fully inelastic demand, i.e., where customers do not change their consumption patterns in response to the tariff. We also assess various approaches designing subscription load shapes that customers can pre-purchase as a hedge that may provide a measure of protection against large negative impacts, while still incentivizing the modification of loads on the margin. We compare and contrast the relative impacts on different customer classes and discuss benefits and pitfalls of different dynamic tariff structures and subscription load shapes.

29 ENERGY PLANNING, POLICY, AND ECONOMY↗

DOE OSTI2022

SolarPlus Optimizer: Integrated Control of Solar, Batteries, and Flexible Loads for Small Commercial Buildings

Building-level microgrids may be a key strategy to unlock the combined potential of flexible loads, renewable generation, and energy storage. However, few software options exist for integrated control of building loads and other distributed energy resources at this scale. The commercial software solutions on the market can force customers to adopt one particular ecosystem of products, thus limiting consumer choice. The SolarPlus Optimizer (SPO) is an open-source building-level microgrid control platform that uses Model Predictive Control to optimize both building loads and behind-the-meter energy storage to reduce energy bills and increase demand flexibility. This paper evaluates the capabilities of SPO in a small commercial building in Northern California under multiple electricity tariffs and demand response scenarios. Comparing SPO operation with an emulated battery and baseline operation employing a commercial optimization service, SPO reduced electricity bills by an estimated 7.3% in summer, 3.2% in spring, and 3.7% in winter. In a “load shape” scenario meant to counter the “duck curve”, SPO achieved 71% fewer violations from the load signal than the baseline control method. During a three hour long load shed event, SPO reduced cooling and refrigeration load by 38%. This research shows significant potential to provide load flexibility for building-level microgrids for this type of control systems. Finally, the paper discusses the future direction of research on open-source control systems.

32 ENERGY CONSERVATION, CONSUMPTION, AND UTILIZATI↗

DOE OSTI2023

Stabilizing the Grid and Reducing Utility Bills Through Price-Responsive Controls for Heat Pump Water Heaters

The electricity grid is facing increasing challenges in cost-effectively balancing supply and demand. These challenges are exacerbated by increased penetration of photovoltaics, which causes mid-day overproduction, and electrification of gas appliances, which increases peak-period electricity demand. Decarbonization requires shifting building loads from fossil-intensive high-cost times to renewable-intensive low-cost times while maintaining quality of service to occupants. Utilities and ISO’s are investigating new ways of incentivizing this load shifting. One promising method is the use of Highly Dynamic Prices (HDPs). HDPs feature continuously changing prices that reflect real-time grid generation and distribution costs and capacity constraints, and thus incentivize consumers to shift their loads. California’s CPUC CalFUSE proposal and Hawaii’s recent changes demonstrate that electricity tariffs are moving towards this model. For this to work however, loads must have the capability to respond to these prices. Heat pump water heaters (HPWHs) are an ideal device for this purpose because their storage tanks decouple delivery of domestic hot water from electricity consumption. The storage enables control strategies that consume midday solar power to increase the energy stored in the tank, then provide evening peak domestic hot water services using the stored energy. Berkeley Lab's CalFlexHub project is pioneering price-driven load flexibility by developing and deploying cost-minimizing controls for many flexible loads - including HPWHs - in response to HDP. Control development is based on simulations using the Flexible Heat Pump Water Heater Performance Predictor which captures the control decisions of the on-board controller in a residential, integrated HPWH . The price-responsive controls a) shift load in ways that consume additional midday solar power to help stabilize the grid and reduce overall emissions, b) ensure that occupants receive equal or better hot water delivery service, and c) minimize the operating cost for each home in the fleet. On the grid level, the resulting shift will reduce utility operating costs and emissions, and can avoid expensive system capacity expansions. The control approach is customized to each home based on typical hot water consumption patterns. HPWH controllers, whether on the device or remotely, will receive a schedule of CTA-2045-B signals or set temperature adjustments customized to the current HDP price schedule and home. Simulation results for a fleet of 148 HPWHs on a summer day in Berkeley, California show cost savings of 29% and high price electricity consumption reductions of 80%, while maintaining full quality of service.

24 POWER TRANSMISSION AND DISTRIBUTION↗

DOE OSTI2023

Techno-economic and environmental assessment of solar-based electrical vehicles charging stations integrated with hydrogen production

With the growing interest in adopting both commercial and residential electric vehicles (EVs) utilizing green renewable energy, the techno-economic assessment of EV charging stations with solar energy is a critical aspect of the transition to sustainable transportation. However, battery storage capacity for variable solar energy production is becoming increasingly less cost-effective due to the higher Lithium price. Complementing solar energy production and battery storage, the potential of combining green hydrogen fuel energy integration with solar energy for EV charging stations can provide a sustainable alternative to reach carbon-free transportation. This research aims to assess the technical and economic viability of grid-connected Photovoltaic (PV)-based EV charging stations across Kentucky based on existing EV load profiles. The study considers different PV system sizes, locations, orientations, and the impact of net metering policies and electricity tariffs on the profitability of the PV systems. Further, using excess PV energy, Lithium-Ion batteries will be charged, which will be assessed considering the techno-economic and environmental impacts of green EV charging stations. To further enhance green renewable energy production, we also investigated the feasibility of on-grid PV-based EV charging stations with Lithium-Ion batteries charged during low tariff periods. In comparison with these scenarios, we studied the potential benefits of integrating green hydrogen energy production using excess solar energy with and without governmental incentives. Furthermore, we assess the environmental impact of these green EV charging stations across Kentucky. Our study indicates that EV stations across Kentucky have similar techno-economic feasibility with insignificant deviation in the levelized cost of electricity, payback period, and PV energy fraction with/without Li-Ion batteries. However, with green hydrogen production, the marginal H 2 production cost indicates the first scenario (on-grid PV energy charging) is the most significant, roughly 10 USD/Kg, which is similar to 1.5 times higher than the second (charging during low-tariff periods) and the third scenarios (power grid to satisfy the demand deficit - approximately 6.5 USD/Kg). From the environmental perspective, the second scenario would be a good option for either hybrid EV/H 2 or EV charging stations in Kentucky, factoring in the hydrogen production cost and the carbon footprint.

08 HYDROGEN↗

DOE OSTI2023

Electric Vehicle Efficiency Ratios for Light-Duty Vehicles Registered in the United States

Electric vehicles (EVs) use energy more efficiently than gasoline vehicles. This is one of their primary attributes, enabling other benefits such as improved torque and reduced operating costs and greenhouse gas emissions. An electric vehicle efficiency ratio (EVER) is therefore important when calculating the financial and environmental benefits of EVs, calculating the impact that EVs have on a manufacturer's Corporate Average Fuel Economy rating, calculating credits in trading schemes such as California's Low Carbon Fuel Standard, fuel price leveling, designing electricity tariffs from utility-owned public charging infrastructure, creating EV alternatives to gasoline excise taxes, and more.

33 ADVANCED PROPULSION SYSTEMS↗

DOE OSTI2022

A Hierarchical Local Electricity Market for a DER-rich Grid Edge

We report with increasing penetration of distributed energy resources (DER) in the distribution system, it is critical to design market structures that enable smooth integration of DERs. A hierarchical local electricity market (LEM) structure is proposed in this paper with a secondary market (SM) at the lower level representing secondary feeders and a primary market (PM) at the upper level, representing primary feeders, in order to effectively use DERs to increase grid efficiency and resilience. The lower level SM enforces budget, power balance, and flexibility constraints and accounts for costs related to consumers, such as their disutility, flexibility limits, and commitment reliability, while the upper level PM enforces grid physics constraints such as power balance and capacity limits, and also minimizes line losses. The hierarchical LEM is extensively evaluated using a modified IEEE-123 bus with high DER penetration, with each primary feeder consisting of at least three secondary feeders. Data from a GridLAB-D model is used to emulate realistic power injections and load profiles over the course of 24 hours. The performance of the LEM is illustrated by delineating the family of power-injection profiles across the primary and secondary feeders as well as corresponding local electricity tariffs that vary across the distribution grid. Through numerical simulations, the hierarchical LEM is shown to improve the efficiency of the market in terms of lowering overall costs, including both the distribution-level locational marginal prices (d-LMP) as well as retail tariffs paid by customers. Together, it represents an overall framework for a Distribution System Operator (DSO) who can provide the oversight for the entire LEM.

24 POWER TRANSMISSION AND DISTRIBUTION↗

DOE OSTI2026

Baseline vs. DER Scenario

Projections and associated uncertainty estimates are generated for a variety of user-selectable EV charging sessions, electricity tariffs, subsidy levels, revenue schemes, charging station configurations, and on-site solar and/or storage options. The outputs are presented in CHIP's web portal browser in the form of easily interpretable graphics (interactive graphs and bar charts) that facilitate convenient comparison among different scenarios to aid decision-making. The user should bring assumptions for modeling on simulation planning horizon, number of EV charging sessions per year, electricity costs (energy and demand charge rates; flat versus time-of-use rate), site capital costs (equipment for EV chargers and transformer), solar PV, and battery energy storage (kW).

32 ENERGY CONSERVATION, CONSUMPTION, AND UTILIZATI↗

DOE OSTI2025

Baseline vs. DER Scenario

Projections and associated uncertainty estimates are generated for a variety of user-selectable EV charging sessions, electricity tariffs, subsidy levels, revenue schemes, charging station configurations, and on-site solar and/or storage options. The outputs are presented in CHIP's web portal browser in the form of easily interpretable graphics (interactive graphs and bar charts) that facilitate convenient comparison among different scenarios to aid decision-making. The user should bring assumptions for modeling on simulation planning horizon, number of EV charging sessions per year, electricity costs (energy and demand charge rates; flat versus time-of-use rate), site capital costs (equipment for EV chargers and transformer), solar PV, and battery energy storage (kW).

32 ENERGY CONSERVATION, CONSUMPTION, AND UTILIZATI↗

DOE OSTI2025

Baseline vs. DER Scenario

Projections and associated uncertainty estimates are generated for a variety of user-selectable EV charging sessions, electricity tariffs, subsidy levels, revenue schemes, charging station configurations, and on-site solar and/or storage options. The outputs are presented in CHIP's web portal browser in the form of easily interpretable graphics (interactive graphs and bar charts) that facilitate convenient comparison among different scenarios to aid decision-making. The user should bring assumptions for modeling on simulation planning horizon, number of EV charging sessions per year, electricity costs (energy and demand charge rates; flat versus time-of-use rate), site capital costs (equipment for EV chargers and transformer), solar PV, and battery energy storage (kW).

32 ENERGY CONSERVATION, CONSUMPTION, AND UTILIZATI↗

DOE OSTI2025

Baseline vs. DER Scenario

Projections and associated uncertainty estimates are generated for a variety of user-selectable EV charging sessions, electricity tariffs, subsidy levels, revenue schemes, charging station configurations, and on-site solar and/or storage options. The outputs are presented in CHIP's web portal browser in the form of easily interpretable graphics (interactive graphs and bar charts) that facilitate convenient comparison among different scenarios to aid decision-making. The user should bring assumptions for modeling on simulation planning horizon, number of EV charging sessions per year, electricity costs (energy and demand charge rates; flat versus time-of-use rate), site capital costs (equipment for EV chargers and transformer), solar PV, and battery energy storage (kW).

32 ENERGY CONSERVATION, CONSUMPTION, AND UTILIZATI↗

DOE OSTI2025

Baseline vs. DER Scenario

Projections and associated uncertainty estimates are generated for a variety of user-selectable EV charging sessions, electricity tariffs, subsidy levels, revenue schemes, charging station configurations, and on-site solar and/or storage options. The outputs are presented in CHIP's web portal browser in the form of easily interpretable graphics (interactive graphs and bar charts) that facilitate convenient comparison among different scenarios to aid decision-making. The user should bring assumptions for modeling on simulation planning horizon, number of EV charging sessions per year, electricity costs (energy and demand charge rates; flat versus time-of-use rate), site capital costs (equipment for EV chargers and transformer), solar PV, and battery energy storage (kW).

32 ENERGY CONSERVATION, CONSUMPTION, AND UTILIZATI↗

DOE OSTI2025

Baseline vs. DER Scenario

Projections and associated uncertainty estimates are generated for a variety of user-selectable EV charging sessions, electricity tariffs, subsidy levels, revenue schemes, charging station configurations, and on-site solar and/or storage options. The outputs are presented in CHIP's web portal browser in the form of easily interpretable graphics (interactive graphs and bar charts) that facilitate convenient comparison among different scenarios to aid decision-making. The user should bring assumptions for modeling on simulation planning horizon, number of EV charging sessions per year, electricity costs (energy and demand charge rates; flat versus time-of-use rate), site capital costs (equipment for EV chargers and transformer), solar PV, and battery energy storage (kW).

32 ENERGY CONSERVATION, CONSUMPTION, AND UTILIZATI↗