What is a good distribution network tariff?—Developing indicators for performance assessment

Abstract

The adoption of distributed energy resources such as PV cells, electric vehicles and batteries in electric grids is increasing steadily. This brings new challenges for distribution networks. The current network tariffs were not designed for these types of usage and, in many cases, they are not adequate anymore. Thus, many new tariff frameworks have been proposed. In this paper, we focus on the question of how to assess whether a given tariff framework fulfills its objectives. We propose to use quantitative indicators for performance assessment. We give examples of indicators for common objectives and demonstrate how they can be derived from a cost-accounting methodology for distribution networks.