Development and application of models for quantifying the economical consequences of increased demand response in electrical power distribution

One step towards a more sustainable energy system is to create a more flexible electrical grid, where increased demand response among electricity consumers can play an important role. A distribution grid owner can encourage their customers to use electricity more evenly distributed during the day by introducing different types of grid fees such as time-differentiated power tariffs. In this master thesis, the theoretical economic impact of a flattened load profile for a distribution grid owner is investigated. Different factors that impact the distribution grid owner’s economy are identified and two are chosen to be quantified; losses in the grid and the fee to the feeding grid. The possibility to save money by avoiding future investments is discussed but not quantified. Models are developed for modifying an existing load profile, calculating the losses associated with a certain grid and load profile, and calculating the value of a lowered subscribed power to the feeding grid. The models are applied on the distribution grid owner Sala-Heby Energi Elnät AB. The results show that with a load profile that is flattened out 100% every day, which is the theoretical best possible scenario, the losses can be reduced with 2.6% which corresponds to a value of 81 000 SEK. By lowering the subscribed power to the feeding grid as much as the highest peak of the year is reduced in the modified load curve, the cost to the feeding grid would be reduced 1.2 million SEK, or 10% of the fee to the feeding grid. In the 20% curve modification case, which would be more realistic to achieve in reality, the losses decreased by 0.9% which corresponds to a value of 29 000 SEK. Furthermore, the fee to feeding grid would be reduced with 0.34 million SEK which corresponds to 2.8% of the total fee. In summary, the theoretical economic saving potential is around 10 times higher for the fee to feeding grid than for grid losses.Marknadsbaserade styrmedel i bostadssektor