Grid tariff designs to address electrification and their allocative impacts
Philipp Andreas Gunkel, Claire Bergaentzlé, Dogan Keles, Fabian Scheller, Henrik Klinge Jacobsen
Abstract
This paper investigates volumetric grid tariff designs considering different pricing mechanisms and resulting in cost-allocative impacts across socio-techno-economic consumer categories. In a case study of 1.56 million Danish households divided into 90 socio-techno-economic categories, we compare three alternative grid tariffs and investigate their impact on annual electricity bills. The results of our design, consisting of a time-dependent threshold penalizing individual peak consumption and a system peak tariff, show (a) a range of different allocations that distribute the burden of additional grid costs across both technologies and (b) strong positive outcomes, including reduced expenses for lower-income groups and smaller households.