Experiences from the introduction of a hybrid energy and capacity-based distribution grid tariff in Norway

The electrification of society increases the strain on the existing electricity infrastructure. Grid tariffs can be used to incentivize lowered customer peak electricity demand and more efficient usage of existing energy infrastructure, thus mitigating costly upgrades of the electricity grid. A public consultation on new tariffs was performed in Norway 2015, and in 2019 the research project ForTa was established with the aim of realizing demand response and reduced investments through an improved introduction of new capacity-based tariffs. On the 1stof July 2022, a new distribution grid tariff was introduced in Norway. This paper presents some of the analyses and findings from the ForTa project – a point of collaboration between grid operators, industry- and research partners – particularly analyses prior to the introduction of the new tariff, surveys of customer behavior and perception related to the new tariff, and analyses of metered demand data after the introduction of the new tariff. Findings suggest a trend of continued electrification which could lead to increased load peaks and grid challenges but also opportunities for management of such challenges. There are observed redistributional effects of the new tariff, although no clear evidence that the new grid tariff has contributed to household demand response.