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Methodology to assess business models of dynamic pricing tariffs in all-electric houses
روش ارزیابی مدل های تجاری تعرفه های قیمت گذاری پویا در خانه های تمام برقی-2020 There is a need for methodologies that integrate energy simulation and cost calculation to assess grid
rent business models as incentive for demand-side management (DSM) in buildings. Despite the proliferation of energy simulation and cost calculation tools, there are no tool (e.g., software program) with
appropriate methodology that caters specifically for the assessment of business models based on aggregation of dynamic pricing tariffs. Furthermore, the majority of existing methodologies focus on evaluating
the supply-side management (SSM) of energy grids, and largely overlook the issue of influencing the customer to make good choices when it comes to DSM and/or design/renovation actions. This paper introduces energy and cost oriented methodology that provides informative support for utility companies and
electric-grid customers including households’ occupants to assess the economic incentives of different
energy and power dynamic pricing tariffs. A physical model-based building simulation tool (IDA-ICE) is
used to assess the energy performance of a representative residential benchmark including 96 all-electric
houses in Norway with and without renewable energy technology. A business model-based cost calculator
is developed and linked with the energy simulation’s outputs to assess the effectiveness of three dynamic
pricing tariffs, suggested recently by the Norwegian Water Resources and Energy Directorate (NVE). The
effectiveness of the three pricing tariffs is compared (improving building’s energy efficiency vs enhancing
grid’s demand side load shifting). Overall, results indicate that the Tiered Rate tariff is the most effective
business strategy for customers to reduce the electric-based heating load during high demand periods.
However, the methodology generated a comprehensive suite of scenarios analysis that allow customers,
utility companies and policy makers to accurately address several building renovation variations and demand side management strategies to make the right decision upfront. Keywords: Demand-side management | Grid rent | End users | Cost effectiveness | Load shifting | Energy flexibility |
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