Do Peak-Valley tariffs increase cost-savings for P&C?

The results show that peak-valley tariffs increase cost-savings for P&C at the expense of grid revenue and the larger the peak-valley spread, the greater the benefits to P&C and, hence, losses to the grid.

Does peak-valley spread affect peak-shaving of the power grid?

Although wider peak-valley spread promotes cost-savings for LEM participants, the effects on peak-shaving of the power grid is marginal. This is because the peak-valley mechanism is still insufficient to identify all potential spikes in power supply, so the storage and reserve capacity resources cannot reach the efficient allocation.

Do Peak-Valley electricity tariffs lead to welfare gains?

Because lower costs for consumers and prosumers imply lower revenue for the grid, peak-valley electricity tariffs may not lead to overall welfare gains.

What is the virtual price of energy storage use?

In summary, the virtual price of energy storage use is set as E p s t − j = E p m + 0.01. To ensure that prosumers first sell electricity in the LEM before storing and then sending the excess to the grid, we set the virtual price of energy storage slightly lower than the feed-in tariff given by E p j − s t = E p s − g − 0.01.

Does Peak-Valley pricing reflect the marginal costs principle?

To begin with, this study has demonstrated that peak-valley pricing policy designed to reflect the marginal costs principle and ensure trading activities in LEMs benefit consumers and prosumers at the expense of the power grid.

What is a virtual price of energy storage use under Tou tariff policy?

As will be discussed shortly, under TOU tariff policy, when the grid price is low, the prosumers will choose to purchase electricity from the grid rather than using energy storage to release electricity. In summary, the virtual price of energy storage use is set as E p s t − j = E p m + 0.01.