Conceptual Recommendations for Optimal Grid Tariff Design

• DOI: 10.2139/ssrn.4484167
• Publication Date: 2023-06-19T16:35:41Z
• Authors: Christian Winzer
• Keywords: Conceptual design

Based on an overview of the welfare impacts grid-tariffs, we derive ten design criteria for efficient grid tariffs. While in theory, a highly granular tariff design, which calculates impact individual customers cost would be most cost-reflective, higher granularity signals also results transaction and lower acceptability. Increasing automation may reduce cost, however, short-term distribution grid-operators don't have real-time monitoring automatic load-control. Within this paper therefore separate conceptual recommendations optimal case with without grid-monitoring automation.