Effect of Dynamic Pricing on the Low-voltage Grid
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Abstract
The growing integration of renewable energy sources presents significant challenges for the reliability of the energy infrastructures in The Netherlands. To address these challenges, dynamic electricity pricing has been proposed as a potential solution to align the electricity demand with the variable supply. While dynamic pricing can incentivize the shifting of flexible loads, its impact on the low-voltage grid remains under-investigated. This thesis explores the impact of dynamic pricing on grid congestion, especially in combination with EV charging and PV systems.
It is hypothesized that while dynamic pricing can effectively shift electricity consumption, it may also lead to concentrated periods of high demand. When consumers synchronize their electricity usage during low-price times, grid congestion can occur.
The study creates a simulation model using Python and PowerFactory to analyse the effects of dynamic pricing on the low-voltage grid. The simulations are based on real-world data from 2023, making use of hourly intervals of loads, EV charging profiles, and solar energy generation across three representative weeks. The model evaluates the voltage levels and power flows to assess the potential for grid congestion under various scenarios of EV and PV adoption.
The results indicate that dynamic pricing can lead to concentrated EV-charging loads, resulting in voltage dips and power spikes. These findings show that the current low-voltage grid may not be equipped to handle the increased demand and variability caused by dynamic pricing schemes. Thus, while dynamic pricing can offer a promising tool for demand-side management, additional measures are necessary to ensure grid stability and to avoid future congestion issues.
In conclusion, the study underscores the dual nature of dynamic pricing as both a valuable tool and a potential risk for the low-voltage grid. Both the voltage and power limits of the grid were found to be causes of congestion, highlighting the need to investigate both. Future research should focus on optimizing dynamic pricing schemes and developing robust grid infrastructure to fully leverage the benefits of renewable energy integration while ensuring grid reliability and resilience.