Evaluating the Efficient Grid Utilisation Incentive : Through the design of the load flow indicator

Abstract: The Swedish energy markets inspectorate (Ei) regulates the Swedish DSOs revenue cap, to ensure reasonable prices, efficiency, and quality of supply towards the end users. In combination with directives from the European Union and Sweden's environmental goal, Ei implemented efficient grid utilization to the DSOs revenue cap in 2016. The efficient grid utilization can be divided into two incentives: load flow and network losses. Criticism regarding the load flow incentive, and the indicator used to calculate it, has been raised from the industry. The purpose of this degree project was to investigate the possibilities of a new indicator that also could be affected by the DSOs actions. The project identified four main indicators to test, weighted load factor, utilization factor, adjusted utilization factor and a utilization factor that incorporates all local production units. The indicators were calculated with data from a regional and local grid, provided by the Swedish DSO Ellevio. Other parameter changes such as peaks and seasonal based calculations were also tested. To see the impact DSOs could have on the indicator, with today's regulations, was detected to be through load shaving and shifting, demand side management (DSM). MATLAB was used to test the impact DSM had on the indicators. Further, a load prediction for the years 2023–2035, based on provided historical data, was executed to test the indicators long-term outcome. The project concluded that the regional grid had little to non-impact on the indicators with DSM whilst the local grid resulted in high increased outcome for most indicators. The project continues to conclude to separate indicators for the regional and local grid, to better represent the two grids characteristic and purpose in Swedish society. The adjusted utilization factor was proposed for the regional grid, due to its non-negative impact from installing renewable energy resources, and the weighted load factor for the local grid due to being highly affected by DSM. Lastly, the project concluded that the indicator needs to be changed and further developed for regional DSOs, for them to have the opportunity to affect it.