Benefits of Dynamic Electricity Tariffs for Industrial Companies in Germany

In view of the increasing volatility and uncertainty in the German electricity system, new ways of providing flexibility must be found. In particular, industrial companies could potentially play a significant role in demand-side flexibility as they are the largest consumers of electricity in Germany. This paper investigates the potential benefits of using battery energy storage (BESS), photovoltaic (PV) and dynamic electricity tariffs in industrial companies to reduce costs and how this affects electricity consumption. Realistic load profiles of small and medium-sized German companies are used as input data. The results show that the implementation of BESS, PV and the use of dynamic electricity tariffs can significantly reduce the total annual costs of industrial companies. One of the main reasons for this is a reduction in grid charges. The results indicate that by taking advantage of atypical grid usage, the total grid fee revenues received by the grid operator could be significantly reduced. Therefore, an adjustment of existing mechanisms is most likely required to avoid an unfair distribution of grid-related costs among different stakeholders.