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The Swedish electricity system is transitioning due to the establishment of climate policy goals and trends related to technology and demographics. The transition has resulted in an increased demand for electricity. The increased demand for electricity in combination with lack of forecasts, planning and coordination between actors in the electricity sector has led to the occurrence of grid congestion. Extending the network is time-consuming and requires substantial investments. Instead, an alternative is to utilise the available grid capacity more efficiently by implementing flexibility solutions. Flexibility can be achieved by implementing incentives such as grid tariffs. This solution has recently gained much attention in Sweden, but it is not apparent how grid tariffs should be designed. The purpose of this thesis is to investigate how distribution grid tariffs could be designed to incentivise different actors to contribute to flexibility in a way that results in an efficient use of the electrical grid. A qualitative study was performed, collecting empirical data through semistructured interviews with actors in the Swedish electricity market. The aim is that the results from this thesis will act as a basis for DSOs planning to design grid tariffs with the purpose to utilise the grid more efficiently. The findings present a ToU capacity charge with off-peak periods that are free of charge as the preferable main price signal in the tariff to achieve efficient utilisation of the grid. It is further argued that other structural elements can complement the ToU capacity charge. A small fixed charge could be added in order to contribute to the cost reflectiveness of the grid tariff. A small energy charge could be incorporated in order to provide consumer with incentives to be flexible below the current metered maximum power and strengthen the signal from the ToU capacity charge. A small energy charge can avert difficulties related to providing incentives below the current metered maximum, as it still can provide some incentives to be flexible, or strengthen the signal from the ToU capacity charge. Further, the energy charge can ensure sustainability if customers respond well to a ToU capacity charge and to compensate solar PV customers. Furthermore, recommendations to further enable the grid tariffs potential to provide price signals include shifting the focus of the revenue cap from CapEx to OpEx and exploring the hampering signals of the energy tax as well as contradicting price signals from the wholesale electricity price. / Det svenska elsystemet genomgår en förändring till följd av införandet av klimatmål och trender relaterade till teknik och demografi. Denna förändring har resulterat i ett ökat effektbehov. Ett ökat effektbehov i kombination med bristande prognostisering, planering och samordning mellan aktörer inom elsektorn har lett till uppkomsten av kapacitetsbrist. Att bygga ut elnätet är tar tid och kräver större investeringar. Ett alternativ är att istället utnyttja det befintliga elnätet mer effektivt genom att implementera flexibilitetslösningar. Flexibilitet kan uppnås genom att införa incitament i form av elnätstariffer. Denna lösning har nyligen fått mycket uppmärksamhet i Sverige, men det är inte klart inte hur dessa elnätstariffer ska utformas. Syftet med detta arbete är att undersöka hur distributionsnätets tariffer kan utformas för att stimulera olika aktörer att bidra med flexibilitet på ett sätt som resulterar i en effektiv användning av det befintliga elnätet. En kvalitativ studie genomfördes där empiriska data samlades in genom semistrukturerade intervjuer med aktörer på den svenska elmarknaden. Syftet är att resultaten från detta arbete ska fungera som ett underlag för nätägare som planerar att utforma elnätstariffer med syftet att utnyttja nätet mer effektivt. Resultaten visar att en ToU-effektavgift med gratis off-peak perioder bör vara den huvudsakliga prissignalen i en elnätstariff som ämnar att utnyttja det befintliga nätet mer effektivt. Det visar även att andra strukturella element kan komplettera ToU-effektavgiften. En mindre fast avgift kan adderas i syfte att göra elnätstariffen mer kostnadsriktig. En mindre energiavgift kan införas för att ge kunder incitament att vara flexibla även under den nuvarande uppmätta maximala effekten och stärka signalen från ToU-effektavgiften. Vidare kan energiavgiften säkerställa tillräckliga intäkter för nätägaren om kunderna svarar bra på en ToU-effektavgift och för att kompensera kunder med solceller. Ytterligare rekommendationer för att möjliggöra prissignaler genom elnätstariffer inkluderar att skifta fokus på intäktsramen från CapEx till OpEx och utforska de hämmande prissignalerna från energiskatten och de motstridiga prissignalerna från elhandelspriset.

This master thesis evaluates the incentives of a newly implemented market controlled network tariff by analyzing consumption data and constructing a time-differentiated debiting model. The tariff was implemented by Sandviken Energi Elnät AB and the thesis evaluates its customers consumption data compared to data provided by Sundsvall Elnät AB. The differences in data is evaluated by statistical tests of Students t-test, Bayesian t-test and χ2-test with the result that no statistically significant change in user pattern can be found and thus an elucidation of the incentives must be made in the form of a hourly time-differentiated debating model. The thesis also evaluates the cost incentives of the model compared to spot prices where it is shown that the tariff model can benefit much from the spot prices hourly incentives in its hourly time-differentiated model. Five time-differentiated models were constructed and presented where three uses a color coding scheme. The conclusion is that a color coded time-differentiated tariff should give the costumers clear and cost-effective incentives.

ESKOM is moving towards a price structure for electricity which reflects, as far as possible, the real cost of generation. It is called real time pricing (RTP). ESKOM developed this cost structure to coax customers to use more electricity in off-peak periods (low cost of generation) and less electricity in peak periods (high cost of generation). However, many industries do not effectively use these price offerings from ESKOM to the detriment of themselves and ESKOM. In previous research improvements to this situation for the South African mining industry were investigated. ESKOM funded research to find the potential for load shifting on mines using RTP. The RTP investigation focused on the supply side management (SSM) in the mining context of underground services on gold and platinum mines. Elements investigated included the ventilation, cooling and pumping (VCP) systems. (Except for pumps, these plants are generally installed aboveground.) Previous research showed a national RTP and SSM potential to shift 500 MW of electrical load for a period of 5 hours. Through the previous research it became clear that the mines were previously able to react partially to the price signals. However, it was proved by the research that the full load shift potential can only be realised through the use of integrated dynamic simulation and optimisation. An even higher potential exists for load shift and electricity efficiency through demand side management (DSM) on the underground services. Therefore, if underground DSM strategies are combined with SSM strategies, a further and much bigger potential can be exploited to the benefit of ESKOM and the mines. Due to these factors this study was undertaken. Three case study mines were identified for this study. They are Kopanang and Target, both gold mines, and Amandelbult, a platinum mine. The DSM potential on each of these mines was calculated using simulation, calibration, verification and optimisation. These results were presented to mine management to negotiate the implementation of the proposed strategies on one of the mines. Kopanang's management agreed to the implementation of these strategies for a trial period of 3 months after which the success would be evaluated. The results of the implementation, together with the case study results, were used to calculate the national DSM potential in the mining sector through extrapolation. The DSM potential amounts to 650 MW of load per day as well as 5% on electricity consumption. This amounts to a potential saving of R72.1 million per year using current tariffs. This means that ESKOM can save about R5000 million on the building of a new power station to supply the equivalent load to the DSM potential. Now that the national impact has been calculated and discussed, all these findings must be used to motivate the implementation of these strategies throughout the mining sector. A similar project can be undertaken to look at possible DSM strategies in the industrial sector. This might prove to be more difficult as the electricity intensive systems are mostly all linked to the final production. In the mind of management this out-weighs the possible cost savings that can be achieved. ESKOM and the NER will have to rethink their strategy. Through DSM and load shifting actions alone the pending electricity crisis will not be averted. The current tariff structures should be amended to not only reflect the true cost of electricity but also provide incentive for DSM and load shifting. Another problem that must be addressed to achieve the DSM targets set for 2007 is the time that it takes to complete the study as well as the implementation time. Software can easily be created to help in the speeding up of the case study itself, as the process and steps followed, as well as models used, are very generic (at least in the gold and platinum mining sector). / Thesis (Ph.D. (Mechanical Engineering))--North-West University, Potchefstroom Campus, 2004.

ESKOM is moving towards a price structure for electricity which reflects, as far as possible, the real cost of generation. It is called real time pricing (RTP). ESKOM developed this cost structure to coax customers to use more electricity in off-peak periods (low cost of generation) and less electricity in peak periods (high cost of generation). However, many industries do not effectively use these price offerings from ESKOM to the detriment of themselves and ESKOM. In previous research improvements to this situation for the South African mining industry were investigated. ESKOM funded research to find the potential for load shifting on mines using RTP. The RTP investigation focused on the supply side management (SSM) in the mining context of underground services on gold and platinum mines. Elements investigated included the ventilation, cooling and pumping (VCP) systems. (Except for pumps, these plants are generally installed aboveground.) Previous research showed a national RTP and SSM potential to shift 500 MW of electrical load for a period of 5 hours. Through the previous research it became clear that the mines were previously able to react partially to the price signals. However, it was proved by the research that the full load shift potential can only be realised through the use of integrated dynamic simulation and optimisation. An even higher potential exists for load shift and electricity efficiency through demand side management (DSM) on the underground services. Therefore, if underground DSM strategies are combined with SSM strategies, a further and much bigger potential can be exploited to the benefit of ESKOM and the mines. Due to these factors this study was undertaken. Three case study mines were identified for this study. They are Kopanang and Target, both gold mines, and Amandelbult, a platinum mine. The DSM potential on each of these mines was calculated using simulation, calibration, verification and optimisation. These results were presented to mine management to negotiate the implementation of the proposed strategies on one of the mines. Kopanang's management agreed to the implementation of these strategies for a trial period of 3 months after which the success would be evaluated. The results of the implementation, together with the case study results, were used to calculate the national DSM potential in the mining sector through extrapolation. The DSM potential amounts to 650 MW of load per day as well as 5% on electricity consumption. This amounts to a potential saving of R72.1 million per year using current tariffs. This means that ESKOM can save about R5000 million on the building of a new power station to supply the equivalent load to the DSM potential. Now that the national impact has been calculated and discussed, all these findings must be used to motivate the implementation of these strategies throughout the mining sector. A similar project can be undertaken to look at possible DSM strategies in the industrial sector. This might prove to be more difficult as the electricity intensive systems are mostly all linked to the final production. In the mind of management this out-weighs the possible cost savings that can be achieved. ESKOM and the NER will have to rethink their strategy. Through DSM and load shifting actions alone the pending electricity crisis will not be averted. The current tariff structures should be amended to not only reflect the true cost of electricity but also provide incentive for DSM and load shifting. Another problem that must be addressed to achieve the DSM targets set for 2007 is the time that it takes to complete the study as well as the implementation time. Software can easily be created to help in the speeding up of the case study itself, as the process and steps followed, as well as models used, are very generic (at least in the gold and platinum mining sector). / Thesis (Ph.D. (Mechanical Engineering))--North-West University, Potchefstroom Campus, 2004.