Time-of-Use Tariff with Local Wind Generation

Renewable energy, such as wind power, is known to significantly reduce system costs and carbon emissions. However, traditional Time of Use (ToU) tariffs fail to account for local energy generation. To overcome this limitation, we propose a mechanism for calculating new ToU tariffs that incorporates Agile ToU and local energy resources, such as a wind farm. By partially supplying local consumption, wind energy can reduce electricity costs for consumers and encourage load shifting towards peak renewable energy production periods. We demonstrate the effectiveness of the proposed mechanism by testing it on a case study of a residential area in Wales, UK, where electricity would be partially supplied by a nearby wind farm with 5 turbines through a Power Purchase Agreement (PPA). The results show that the new tariff significantly reduces electricity bills.