Congestion Management in Electricity Distribution Networks - Smart Tariffs, Local Markets and Direct Control

Increasing peaks from high-power loads such as EVs and heat pumps lead to congestion of electric distribution grids. The inherent flexibility of these loads could be used to resolve congestion. Possible options for this are smart network tariffs, market-based approaches and direct control of flexible loads by the network operator. In this contribution, we bridge the gap between these methods and present an overarching framework of design. We classify common proposals based on these and discuss their benefits and risks. Finally, we provide a mapping of possible risks and discuss pros and cons of different mechanisms for various problem types