Paper Conference

Proceedings of Building Simulation 2017: 15th Conference of IBPSA


Impact of Electricity Price Policies on Optimal District Energy System Design

L. Andrew Bollinger
Urban Energy Systems Laboratory, Empa, Switzerland

Abstract: A variety of electricity price policies are currently implemented or under consideration in different places around the world. This includes electricity feed-in policies such as feed-in tariffs and net metering, as well as electricity withdrawal price policies such as time-of-use and real-time electricity pricing. Different electricity price policies may influence the economic feasibility and sustainability performance of district energy systems in different ways. However, the precise nature of these relationships is unknown. This paper applies a deterministic mixed-integer linear programming approach to investigate the influence of different electricity price policies on the optimal technical configuration, costs and carbon emissions of a hypothetical district energy system. The results highlight the potential benefits of a net metering policy to incentivize technical configurations with low carbon emissions, and of a time-of-use pricing policy to incentivize technical configurations with relatively low carbon emissions and low costs. A policy combining net metering and time-of-use pricing is shown to partially realize the combined advantages of these two policies. Furthermore, the results suggest that the precise timing of price variations under dynamic electricity pricing schemes may significantly influence system design incentives and system performance.
Pages: 1854 - 1861