Peak Power and Dynamic Capacity Tariff Insights

Background

Dynamic Capacity Tariffs are a pricing mechanism for grid fees implemented by utility companies to encourage consumers to shift their power consumption away from peak demand periods. Unlike traditional grid fees, which are based on fixed tariffs, dynamic capacity tariffs take into account both power consumption and the capacity of the electricity grid required to meet peak demand. By reducing power consumption during peak times, consumers can save on their electricity bills while helping to alleviate stress on the grid infrastructure. Dynamic Capacity Tariffs are calculated by identifying the highest peak power usage during a defined period.

What is Peak Power?

Peak power represents the highest power value for 15, 30, or 60-minute data points over a defined time period (resolution), typically on a daily, monthly, or yearly basis. It indicates the maximum load that the electricity grid needs to handle at any given time.

Eliq offers tools to provide consumers with Dynamic Capacity Tariffs insights into their Peak Power Usage. Eliq can calculate and return Peak Power Usage values in resolutions of hour, day, or month and compute the Peak Power values based on input parameters to the Peak Power Insights API Endpoint.

Peak Power Insights can be presented to end users in a graph showing power usage over time, for different resolutions, to help users understand when they used a lot of power and when they did not. This can give end users insights into which consumption behaviours generate high peak usage and which do not.

How do Dynamic Capacity Tariffs work?

Peak Power is the basis for Dynamic Capacity Tariffs and is measured in kilowatts (kW). They are measured differently from different providers but are usually the highest energy consumption during a period.

Examples:

Belgium

Belgium has implemented dynamic capacity tariffs since 1st January 2023, where part of the grid cost is dynamic and calculated based on consumers' historic consumption. The rate is based on the average monthly peak power usage for the previous 12 months. If there are fewer than 12 months of data available, the calculation is based on the available months for the home.

The peaks are calculated based on the highest power value for a measured 15-minute period within the same month. The peak power is measured in kilowatts (kW).

Gothenburg, Sweden
Dynamic Capacity Tariffs exist in Gothenburg, Sweden, and are also based on the highest level of hourly consumption during a 1-hour period. Peak Power is measured by identifying the highest hourly energy consumption value during a day.

Dynamic Capacity Tariffs are typically billed monthly and calculated by identifying the 3 highest peaks for 3 different days in the same month. The average of those 3 days forms the basis of the Dynamic Capacity Tariff.

Note: The above examples are based on implementations as of 1st June 2023 and may have changed.

Peak Power Insights

Eliq offers tools to provide consumers with Dynamic Capacity Tariffs insights into their Peak Power Usage. Eliq can calculate and return Peak Power Usage values at hourly, daily, or monthly resolutions, and calculate the Peak Power values based on input parameters to the Peak Power Insights API Endpoint.

Peak Power Insights can be presented to end users in a graph showing power usage over time and at different resolutions, helping users understand when they used a lot of power and when they did not. This provides end users with insights into which consumption behaviours generate high peak usage and which do not.

End users can zoom out and view Peak Power Insights on a yearly resolution, including which months had the highest or lowest peaks, or zoom in to see detailed insights per hour of the day.

Dynamic Capacity Tariff Insights

Dynamic Capacity Tariffs are a pricing mechanism for Grid Fees that utility companies implement to incentivise consumers to shift their power consumption away from peak demand periods. Traditional grid fees are based on fixed tariffs. However, dynamic capacity tariffs take into account power consumption and the capacity of the electricity grid required to meet peak demand. Consumers are encouraged to reduce their power consumption. By doing so, they can save on their electricity bills while helping to alleviate the stress on the grid infrastructure.

Users can understand the basis of their Dynamic Capacity Tariff if shown the peaks based on their billing period.

• Annually billed consumers can be shown each month's peak. Apps can present the average for all months to display the value that will be used to determine the bill.
• Monthly billed consumers can be shown the average of the three highest peaks on three different days during a single month if that is how they are billed.

Other ways of presenting Dynamic Capacity Tariff Insights are supported.

Use cases

Show Highest peak on different resolutions

In the example below, end users can "zoom out" and see Peak Power Insights on a yearly resolution, with an indication of which month of the year had the highest peak of all months. If a user is interested in understanding which day or hour the peak occurred, it is possible to "zoom in" to a higher resolution to identify which day or hour had the highest peak.

An app can request Peak Power for the resolutions: month for the year, day for the month of May, and hour of the day. The app UI can highlight the highest power value that is returned in the array from the Insights API, making it stand out in a darker shade. The highest peak can also be presented below the graph in text.

Utilities measure peaks in different ways. Some utilities will charge consumers based on the highest peak during a period, while others may charge consumers based on an average of several peaks during a period (e.g., the average of the three highest peaks on three different days of the same month). Which logic is relevant to show to the end user can be determined by an app, based on the app's business logic. The data and results can be provided by Eliq’s peak power endpoint and the request made.

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On these cards, you can track your highest peak for the chosen time period (Daily, Weekly, Monthly, Yearly).

Home card

Displaying a summary on the home screen or dashboard can provide insight into peak power usage so far or for the current month. These resolutions can, of course, be set differently in an app.

Here is an example of a peak power home card. In this scenario, a user will be billed based on the average of the three highest peaks for the calendar year. With this information, users can get a quick understanding of the current status of the annual average for the year, as well as the specific day and time they peaked during the ongoing month.

Average peak power

In the example below, from Belgium, a screen shows the highest monthly peaks for a year (2023), as well as an average for all months so far. End users can see the peak power value that will be the basis for their dynamic capacity tariff, along with each month's peak. There is also a link to external information containing more details.

On this page, you can track your current average peak for the period, browse between different periods, and read more about how you are being billed for the tariff fee.

More information

See our API Reference Documentation for Get location peakpower

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