The impact of electricity pricing schemes on storage adoption in Ontario

Tommy Carpenter, Sahil Singla, Parsiad Azimzadeh, S. Keshav

Research output: Chapter in Book/Report/Conference proceedingConference contribution

23 Scopus citations

Abstract

The Ontario electrical grid is sized to meet peak electricity load. If this worst-case load were reduced, the government and Ontario taxpayers could defer large infrastructural costs, reducing the cost of generation and electricity prices. Storage, batteries that can store energy during times of low load and be discharged during times of peak load, is one proposed solution to reducing peak load. We evaluate the effect of storage on the electrical grid under different customer electricity pricing schemes. We find that for existing pricing schemes, adopting storage is not profitable. Furthermore, as the level of storage adoption in the population increases, pricing schemes that incentivize charging at times known to all homeowners will eventually increase the peak load rather than decrease it. However, in some circumstances particular levels of homeowner storage adoption helps the grid reduce peak load, and thus the grid may choose to subsidize the cost of storage. We discuss hypothetical pricing schemes under which storage adoption is profitable for homeowners.

Original languageEnglish (US)
Title of host publicationProceedings of the 3rd International Conference on Future Energy Systems
Subtitle of host publication"Where Energy, Computing and Communication Meet", e-Energy 2012
DOIs
StatePublished - Jun 1 2012
Externally publishedYes
Event3rd International Conference on Future Energy Systems, e-Energy 2012 - Madrid, Spain
Duration: May 9 2012May 11 2012

Publication series

NameProceedings of the 3rd International Conference on Future Energy Systems: "Where Energy, Computing and Communication Meet", e-Energy 2012

Other

Other3rd International Conference on Future Energy Systems, e-Energy 2012
CountrySpain
CityMadrid
Period5/9/125/11/12

All Science Journal Classification (ASJC) codes

  • Computer Networks and Communications
  • Energy Engineering and Power Technology

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