demand-side management; grid rent; end users; cost effectiveness; load shifting; energy flexibility
Abstract :
[en] There is a need for methodologiesthat integrate energy simulationand cost calculation to assess grid rent business models as incentive for demand-side management(DSM) in buildings. Despite the proliferation of energy simulation and cost calculation tools, there are no tool(e.g., softwareprogram) with appropriate methodology that caters specifically for the assessment of business models based on aggregation of dynamic pricing tariffs. Furthermore, the majority of existing methodologies focus on evaluating the supply-side management (SSM) of energy grids, and largely overlook the issue of influencing the customer to make good choices when it comes to DSM and\o rdesign/renovation actions. This paper introduce senergy and cost oriented methodology that provides informative support for utility companies and electric-grid customers including households’ occupants to assess the economic incentives of different energy and power dynamic pricing tariffs. A physical model-based building simulation tool (IDA-ICE) is used to assess the energy performance of a representative residential benchmark including 96 all-electric houses in Norway with and without renewable energy technology. A business model-based cost calculator is developed and linked with the energy simulation’s outputs to assess the effectiveness of three dynamic pricing tariffs, suggested recently by the Norwegian Water Resources and Energy Directorate (NVE). The effectiveness of the three pricing tariffs is compared (improving building’s energy efficiency vs enhancing grid’s demand side load shifting). Overall, results indicate that the Tiered Rate tariff is the most effective business strategy for customers to reduce the heating load during high demand periods. However, the methodology generated a comprehensive suite of scenarios analysis that allow customers, utility companies and policy makers to accurately address several building renovation variations and demand side management strategies to make the right decision upfront.
Research center :
Sustainable Building Design Lab
Disciplines :
Architecture
Author, co-author :
Schonfeldt Karlsen, Sophie
Hamdy, Mohamed
Attia, Shady ; Université de Liège - ULiège > Département ArGEnCo > Techniques de construction des bâtiments
Language :
English
Title :
Methodology to asses business models of dynamic pricing tariffs in all-electric houses
Aneke, M., Wang, M., Energy storage technologies and real life applications–A state of the art review. Appl. Energy 179 (2016), 350–377.
ASHRAE, A. Standard 140-2011-Standard Method of Test for the Evaluation of Building Energy Analysis Computer Programs, 2017, ASHRAE Engineers, AtlantaGA.
Attia, S., Net Zero Energy Buildings (NZEB): concepts, Frameworks and Roadmap for Project Analysis and Implementation. 2018, Elsevier, 10.1016/c2016-0-03166-2 ISBN: 978-0128124611.
Banfi, S., Farsi, M., Filippini, M., Jakob, M., Willingness to pay for energy-saving measures in residential buildings. Energy Econ. 30:2 (2008), 503–516.
Barker, S.K., Mishra, A.K., Irwin, D.E., Shenoy, P.J., Albrecht, J.R., SmartCap: flattening peak electricity demand in smart homes. In PerCom(March), 2012, 67–75.
Barton, J., Huang, S., Infield, D., Leach, M., Ogunkunle, D., Torriti, J., Thomson, M., The evolution of electricity demand and the role for demand side participation, in buildings and transport. Energy Policy 52 (2013), 85–102.
Barzin, R., Chen, J.J.J., Young, B.R., Farid, M.M., Peak load shifting with energy storage and price-based control system. Energy 92 (2015), 505–514.
Bergaentzlé, C., Jensen, I.G., Skytte, K., Olsen, O.J., Electricity grid tariffs as a tool for flexible energy systems: a Danish case study. Energy Policy 126 (2019), 12–21.
Bourgeois, J., Van Der Linden, J., Kortuem, G., Price, B.A., Rimmer, C., Conversations with my washing machine: an in-the-wild study of demand shifting with self-generated energy. Proceedings of the ACM Conference on Pervasive and Ubiquitous Computing, 2014, 459–470 ACM.
Ceseña, E.A.M., Good, N., Mancarella, P., Electrical network capacity support from demand side response: techno-economic assessment of potential business cases for small commercial and residential end-users. Energy Policy 82 (2015), 222–232.
Chen, Y., Xu, P., Gu, J., Schmidt, F., & Li, W. (2018). Measures to improve energy demand flexibility in buildings for demand response (DR): a review. Energy Build.
Eid, C., Koliou, E., Valles, M., Reneses, J., Hakvoort, R., Time-based pricing and electricity demand response: existing barriers and next steps. Utilities Policy 40 (2016), 15–25.
EN 16798 (2017). Indoor environmental input parameters for design and assessment of energy performance of buildings addressing indoor air quality, thermal environment, lighting and acoustics. EU for Standardization.
EQUA. EQUA simulation AB. 2018, IDA Indoor Climate and Energy, Sweden Available from: http://www.equa.se.
Esther, B.P., Kumar, K.S., A survey on residential demand side management architecture, approaches, optimization models and methods. Renew. Sustain. Energy Rev. 59 (2016), 342–351.
Eurostat (2016) Share of fuels in the final energy consumption in the residential sector for space heating, File, available from: https://tinyurl.com/y8bso9e3, accessed 24 January 2019.
Euroelectric (2018) Decarbonization pathways European economy eu electrification and decarbonization scenario modelling: synthesis of key findings, https://cdn.eurelectric.org/media/3172/decarbonisation-pathways-electrificatino-part-study-results-h-AD171CCC.pdf, accessed 24 January 2019.
Gottwalt, S., Ketter, W., Block, C., Collins, J., Weinhardt, C., Demand side management – A simulation of household behavior under variable prices. Energy Policy 39:12 (2011), 8163–8174.
Hagen, V.C., Robustness Assessment Methods to Identify Robust High-Performance Building Designs. Master Thesis, 2018, Department of Civil and Environmental Engineering, Norwegian University of Science and Technology, Trondheim, Norway Submitted for publication.
Hamdy, M., Hasan, A., Siren, K., A multi-stage optimization method for cost-optimal and nearly-zero-energy building solutions in line with the EPBD-recast 2010. Energy Build. 56 (2013), 189–203.
Hamdy, M., Sirén, K., Attia, S., Impact of financial assumptions on the cost optimality towards nearly zero energy buildings–A case study. Energy Build. 153 (2017), 421–438.
He, X., Delarue, E., D'haeseleer, W., Glachant, J.M., A novel business model for aggregating the values of electricity storage. Energy Policy 39:3 (2011), 1575–1585.
Jensen, S., Marszal-Pomianowska, A., Lollini, R., Pasut, W., Knotzer, A., Engelmann, P., Reynders, G., IEA EBC Annex 67 energy flexible buildings. Energy Build. 155 (2017), 25–34.
Karlsen. Master thesis., 2018.
Karlsen, S.S.; Backe, S.; Hamdy, M.Effect of grid tariffs on demand-side management in all-electric buildings in Norway. Proceeding of the Conference of Building Simulation, BS 2019, 02-04 September 2019, Rome, Italy.
Katz, J., Linking meters and markets: roles and incentives to support a flexible demand side. Util. Policy 31 (2014), 74–84.
Keshtkar, A., Arzanpour, S., Keshtkar, F., Adaptive residential demand-side management using rule-based techniques in smart grid environments. Energy Build. 133 (2016), 281–294.
Koliou, E., Bartusch, C., Picciariello, A., Eklund, T., Söder, L., Hakvoort, R.A., Quantifying distribution-system operators’ economic incentives to promote residential demand response. Utilities Policy 35 (2015), 28–40.
Marszal-Pomianowska, A., Heiselberg, P., Larsen, O.K., Household electricity demand profiles–A high-resolution load model to facilitate modelling of energy flexible buildings. Energy 103 (2016), 487–501.
Nagasawa, K., Rhodes, J.D., Webber, M.E., Assessment of primary energy consumption, carbon dioxide emissions, and peak electric load for a residential fuel cell using empirical natural gas and electricity use profiles. Energy Build. 178 (2018), 242–253.
Newsham, G., Bowker, B., The effect of utility time-varying pricing and load control strategies on residential summer peak electricity use: a review. Energy Policy 38 (2010), 3289–3296.
NVE (2017). Smart metering (AMS). Available at:https://www.nve.no/energy-market-and-regulation/retail-market/smart-metering-ams/(Accessed 16 January 2019).
IEA. Energy Policies of Iea Countries: Norway 2017 Review, 2017, IEA, Report, Paris, France.
Pallonetto, F., Oxizidis, S., Milano, F., Finn, D., The effect of time-of-use tariffs on the demand response flexibility of an all-electric smart-grid-ready dwelling. Energy Build 128 (2016), 56–67 Policy, 35, 28-40.
Rohani, A., Nazari, M., Impact of dynamic pricing strategies on consumer behavior. J. Manag. Res. 4:4 (2012), 143–159.
Sagebiel, J., Müller, J.R., Rommel, J., Are consumers willing to pay more for electricity from cooperatives? Results from an online choice experiment in Germany. Energy Res. Soc. Sci. 2 (2014), 90–101.
Salom, J., Marszal, A.J., Widén, J., Candanedo, J., Lindberg, K.B., Analysis of load match and grid interaction indicators in net zero energy buildings with simulated and monitored data. Applied Energy 136 (2014), 119–131.
Schulte, I., Heindl, P., Price and income elasticities of residential energy demand in Germany. Energy Policy 102 (2017), 512–528.
Standard Norge (2016). SN/TS 3031:2016 energy performance of buildings. Calculation of energy needs and energy supply. Retrieved from:http://www.standard.no/.
Strbac, G., Demand side management: benefits and challenges. Energy Policy 36:12 (2008), 4419–4426.
Tayal, D., Evers, U., Consumer preferences and electricity pricing reform in Western Australia. Util. Policy 54 (2018), 115–124.
TEK17, (2017) Veiledning om tekniske krav til byggverk, Byggteknisk forskrift (TEK17) med veiledning. Ikrafttredelse 1. juli 2017, Direktoratet for byggkvalitet.
Toshiba Varmepumper (2017). Toshiba Daiseikai 9. Available at:https://www.toshibavarmepumper.no(Accessed 10 January 2019).
Torriti, J., Demand side management for the european supergrid: occupancy variances of European single-person households. Energy Policy 44 (2012), 199–206.
Voulis, N., van Etten, M.J., Chappin, É., Warnier, M., Brazier, F.M., Rethinking European energy taxation to incentivise consumer demand response participation. Energy Policy 124 (2019), 156–168.
Yang, X., Zhang, Y., Zhao, B., Huang, F., Chen, Y., Ren, S., Optimal energy flow control strategy for a residential energy local network combined with demand-side management and real-time pricing. Energy Build. 150 (2017), 177–188.
Zhang, S., Jiao, Y., Chen, W., Demand-side management (DSM) in the context of China's on-going power sector reform. Energy Policy 100 (2017), 1–8.