Maximum Demand Tariffs
“How can we design a two-part tariff specifically catered to the maximum demand of a system?”
Two-part tariffs are great for controlling system-level energy use. But sometimes we would like to focus it on controlling the maximum demand for energy use. We can use something called a Maximum Demand Tariff which not only charges in proportion to energy used but levels an extra tariff based on the max power they drew for the given time period.
“How can we have an energy tariff that charges both at a fixed and proportional rate?”
Energy tariffs come in all shapes and sizes. One of the most interesting ones is those that not only charge at a proportional rate but also at a fixed rate. This Two-Part Tariff can be used in the case of optimization for grid network loads.
Block Rate Tariffs
“How can we make an electricity tariff that becomes progressively cheaper as you use more energy?”
Charging less for increased energy consumption makes sense in many cases such as incentivizing renewable energy production. One way to accomplish this is to use a tariff structure in which energy consumption amounts are divided into discrete blocks and each succeeding block of energy used is cheaper. These Block Rate Tariffs can be implemented by utilities to accomplish their infrastructure and market goals.
Flat Rate Tariffs
“How does a flat rate work for electricity usage?”
Utilities produce revenue through electricity tariffs. Although not the simplest, another simple type of tariff is the Flat Rate Tariff. Despite the name, these tariffs still charge in proportion to electricity usage. Rather, they are called flat rate since they do not discriminate based on time of use. What differentiates flat rate tariffs from simple tariffs is that they can distinguish between different types of consumers, such as residential or commercial. The advantages of flat rate tariffs is their simple implementation, while their primary drawback is their inability to incentive different times of use, a necessity to mitigate the duck curve.
Simple Electricity Tariffs
“What is the simplest type of energy tariff?”
In order for energy companies to survive, they need to find a way to charge money for the energy they produced. This is usually done through an Electricity Tariff. The most simple type of electricity tariffs is known as Simple Electricity Tariffs. These tariffs simple charge money in direct proportion to energy consumed. The advantages of this is that it simple, easy to understand and implement, and directly responds to how much electricity is used per-capita. However, the drawbacks is that these tariffs cannot be tailored to specific group’s needs, which can lead to higher cost, provides no incentive to consume more electricity, and if no electricity is purchased during the month then the utility can die.
How Rooftop Solar Can Be Used as a Grid Resource
“How can rooftop solar be utilized for the grid’s needs?”
Rooftop solar is one of the fastest growing types of distributed energy resources. However, right now they are only used to provide power to the buildings of the owner. But what if we could use that extra energy to provide power for the grid? This would increase grid flexibility and allow for further decarbonization. This is How Rooftop Solar Can Be Used a Grid Resource.
Why Undergrounding Power Lines Makes Them More Vulnerable to Flood Damage
“Why is undergrounding power lines not recommended for flood-prone areas?”
Undergrounding power lines is a recommended course of action to build resilience against forest fires, storms, and heavy winds. However, this also makes them more prone to flood damage, as they will become submerged in water in the event of one. This is Why Undergrounding Transmission Lines Makes Them More Vulnerable to Flood Damage.