Publication
Open Access

Future-proof tariff design : recovering sunk grid costs in a world where consumers are pushing back

Loading...
Thumbnail Image
Files
RSCAS_2017_22.pdf (928.69 KB)
Full-text in Open Access
License
Full-text via DOI
ISBN
ISSN
1028-3625
Issue Date
Type of Publication
LC Subject Heading
Other Topic(s)
EUI Research Cluster(s)
Initial version
Succeeding version
Preceding version
Published version part
Earlier different version
Initial format
Citation
EUI RSCAS; 2017/22; Florence School of Regulation; Energy
Cite
SCHITTEKATTE, Tim, MOMBER, Ilan, MEEUS, Leonardo, Future-proof tariff design : recovering sunk grid costs in a world where consumers are pushing back, EUI RSCAS, 2017/22, Florence School of Regulation, Energy - https://hdl.handle.net/1814/46044
Abstract
Traditional analysis of distribution grid user’s reaction to tariffs assumes a low price sensitivity and a lack of alternative technologies to grid connection. This is radically changing with two technology breakthroughs: (1) Photovoltaics (PV) enable domestic and commercial consumers to self-produce energy; (2) Batteries allow self-producers to set both their grid energy and capacity parameters. Contributing to the state of the art, the grid cost recovery problem is modelled as a non-cooperative game between consumers. In this game, the availability and costs of new technologies (such as PV and batteries) strategically interact with tariff structures. Four states of the world for user’s access to new technologies are distinguished and three tariff structures are evaluated. The assessed distribution network tariff structures are: energy volumetric charges with net-metering, energy volumetric charges for both injection and withdrawal, and capacity-based charges. Results show that the new distribution world -open by new technology choices for grid users- is highly interactive and threatens grid regulation not understanding it.
Table of Contents
Additional Information
External Links
Publisher
Version
Research Projects
Sponsorship and Funder Information