SmartgridOne

Use Case: New Swedish Grid Tariffs

Capacity Charges

Sweden has introduced updated residential grid tariffs which significantly change how electricity costs are calculated. Consumers are now charged not only for their variable energy usage—often based on hourly spot prices—but also for the highest power demand (kW) they incur during peak intervals. This shift puts greater financial pressure on consumers to limit both their energy use and their maximum power draw.

In this context, our EMS SmartgridOne, that controls flexible assets—such as batteries, EV chargers, and heat pumps—must now aim to minimize total electricity cost, which includes both consumption and capacity charges.

Our Solution

Our EMS is already equipped to handle these new tariff structures. It employs an optimization algorithm that considers both energy pricing and peak power constraints. Specifically:

  • Dynamic Capacity Monitoring
    The EMS continuously assesses the available grid capacity and determines whether increasing the subscribed peak level is economically viable or whether it is better to maintain the current level.
  • Peak Load Identification
    The system identifies the most power-intensive intervals—usually measured in hourly or 15-minute blocks—across the billing period. It calculates the average of the top three such intervals, which sets the monthly peak demand.
  • Cost-Constrained Scheduling
    The EMS prioritizes keeping power consumption below the current peak threshold. It will only allow that limit to be exceeded if the resulting energy arbitrage or operational value justifies the higher cost.
  • Monthly Recalibration
    As defined by the Swedish grid tariff model, the peak demand level is recalculated every month. The EMS includes logic to account for this monthly rolling average mechanism, ensuring compliance and cost-effectiveness.

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