Limiting peaks in the electricity grid. Experiences from the Norwegian market.
Master thesis
Permanent lenke
https://hdl.handle.net/11250/3089808Utgivelsesdato
2023Metadata
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- Studentoppgaver (Business) [1059]
Sammendrag
Electrification leads to a need for more grid capacity, and at the same time, the grid is underutilized. High demand occurs only during short periods. To reduce these high peaks, utility companies have implemented a new network tariff to incentivize consumers to even out their energy demand throughout the day and shift their demand from peak to off-peak hours. Using hourly meter readings, survey-, weather- and spot price data, we analyze the effect of anew tariff on households’ peak demand. We investigate the causal relationship between peakpricing and each household’s peak demand using a two-way fixed effects model. We further explore the effects of Time-of-Use tariffs by doing a descriptive analysis. We find that households have reduced their daily peak demand by ~2% after implementing the new network tariff. The households with more occupants, more electric vehicles, or high income are among the groups that have responded the strongest. Our descriptive analysis of Time-of-Use showsa shift from peak- to off-peak hours due to this policy. While the results show a clear response to both the peak-pricing and Time-of-Use components in the tariff, the tariff is insufficient to reach the policy’s goal. We suggest shifting more focus to the Time-of-Use component.