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Efficient Network Tariffs for Flexible Consumers

At a glance


Sector coupling and increasing production from renewable energy sources are leading to a growing need for grid expansion. Network tariffs enabled by digitalisation could avoid some of these expansions by incentivizing consumers to make their flexibility available at a lower cost.
In this project, we will derive such efficient, cost-minimising tariffs. We will first analyse what modifications of load-flows are required to avoid grid expansion. We will then build a bottom up model of the demand curve allowing us to estimate the cost of these load-flow modifications depending on the magnitude, frequency and duration of demand or supply restrictions for different types of consumers.
Based on this we will derive a tariff design, which incentivizes a combination of demand response and grid investments that minimize the total cost of society. We will quantify the resulting cost savings and highlight policy implications for Switzerland and the EU.

Further information