TarifFlex – Price Based Demand Side Management for District Heating Grids

District heating networks are essential for the energy transition, yet currently lack pricing mechanisms to influence consumption. While dynamic tariffs are common in the electricity sector, comparable models are missing in district heating due to the absence of market prices and the complexity of generation systems.

The TarifFlex project addresses this gap by developing a software prototype that calculates hourly dynamic heat prices based on real operational, load, and cost data. These price signals encourage consumers to shift their heating demand to periods of lower system costs, enabling peak shaving, reducing fossil backup generation, and improving the integration of renewable heat sources.

In addition to algorithm and software development, the project performs a comprehensive economic assessment for both operators and end-users. An existing simulation framework is used to evaluate different flexibility scenarios and quantify impacts on system load, cost savings, and CO₂ emissions.