Benefits of Dynamic Electricity Tariffs for Industrial Companies in Germany

Kurzfassung

With increasing volatility and uncertainty in the German electricity system, new ways to offer flexibility need to be found. Especially industrial companies could potentially play a significant role in demand side flexibility, since they are the largest consumers of electricity in Germany. This paper explores the potential benefits of using battery energy storage systems (BESS), photovoltaic (PV), and dynamic electricity tariffs in industrial companies for cost reduction and how this affects electricity consumption. As input data, real-world quarter-hourly load profiles of small and medium-sized German enterprises are used. The results show that by implementing BESS, PV, and using dynamic electricity tariffs, total annual costs of industrial companies can be substantially reduced. One of the main reasons for this is a reduction in grid fees. The results indicate that by taking advantage of the atypical grid usage, overall grid fees for the grid operator could decrease significantly.