TY - GEN
T1 - The impact of electricity pricing schemes on storage adoption in Ontario
AU - Carpenter, Tommy
AU - Singla, Sahil
AU - Azimzadeh, Parsiad
AU - Keshav, S.
PY - 2012
Y1 - 2012
N2 - 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.
AB - 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.
KW - Economics
KW - Measurement
UR - http://www.scopus.com/inward/record.url?scp=84861553890&partnerID=8YFLogxK
UR - http://www.scopus.com/inward/citedby.url?scp=84861553890&partnerID=8YFLogxK
U2 - 10.1145/2208828.2208846
DO - 10.1145/2208828.2208846
M3 - Conference contribution
AN - SCOPUS:84861553890
SN - 9781450310550
T3 - Proceedings of the 3rd International Conference on Future Energy Systems: "Where Energy, Computing and Communication Meet", e-Energy 2012
BT - Proceedings of the 3rd International Conference on Future Energy Systems
T2 - 3rd International Conference on Future Energy Systems, e-Energy 2012
Y2 - 9 May 2012 through 11 May 2012
ER -