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The economic effect of electricity net-metering with solar PV: Consequences for network cost recovery, cross subsidies and policy objectives
KTH, School of Electrical Engineering (EES).
2014 (English)In: Energy Policy, ISSN 0301-4215, E-ISSN 1873-6777, Vol. 75, p. 244-254Article in journal (Refereed) Published
Abstract [en]

Net-metering is commonly known as a practice by which owners of distributed generation (DG) units may offset their electricity consumption from the grid with local generation. The increasing number of prosumers (consumers that both produce and consume electricity) with solar photovoltaic (PV) generation combined with net-metering results in reduced incomes for many network utilities worldwide. Consequently, this pushes utilities to increase charges per kW h in order to recover costs. For non-PV owners, this could result into inequality issues due to the fact that also non-PV owners have to pay higher chargers for their electricity consumed to make up for netted costs of PV-owners. In order to provide insight in those inequality issues caused by net-metering, this study presents the effects on cross-subsidies, cost recovery and policy objectives evolving from different applied netmetering and tariff designs for a residential consumer. Eventually this paper provides recommendations regarding tariffs and metering that will result in more explicit incentives for PV, instead of the current implicit incentives which are present to PV owners due to net-metering.

Place, publisher, year, edition, pages
Elsevier, 2014. Vol. 75, p. 244-254
Keywords [en]
Distributed Generation, economics, network operator
National Category
Other Electrical Engineering, Electronic Engineering, Information Engineering
Research subject
Energy Technology
Identifiers
URN: urn:nbn:se:kth:diva-214850DOI: 10.1016/j.enpol.2014.09.011ISI: 000347604500027Scopus ID: 2-s2.0-84921922575OAI: oai:DiVA.org:kth-214850DiVA, id: diva2:1143915
Funder
EU, European Research Council
Note

QC 20170925

Available from: 2017-09-23 Created: 2017-09-23 Last updated: 2017-09-25Bibliographically approved
In thesis
1. Towards the design of flexibility management in smart grids: A techno-institutional perspective
Open this publication in new window or tab >>Towards the design of flexibility management in smart grids: A techno-institutional perspective
2017 (English)Doctoral thesis, comprehensive summary (Other academic)
Abstract [en]

The European policy focus on smart grids implies their development as an indispensable part of the future power system. However, the definition of a smart grid is broad and vague, and the actual implementation of a smart grid can differ significantly, depending on the stakeholders involved.This work aims to inform policy makers, the electricity industry and researchers about stakeholder interests and the technical complexities involved by presenting smart grids via a techno-institutional framework. This framework takes account of the technical nature of the electricity transport and supply service as well as the institutional nature of electricity markets, stakeholder perspectives and sector regulation. In addition, this work presents potential revenues resulting from flexibility management in smart grids and proposes a way forward for smart grids and flexibility management in Europe.

Place, publisher, year, edition, pages
Delft: Gildeprint, 2017. p. 242
Series
TRITA-EE, ISSN 1653-5146 ; 2017-068
Keywords
energy, electricity, regulation, European Union, distribution networks, balancing markets, distributed energy resources, congestion management, market transparency, European governance, European modes of regulation, regulatory change
National Category
Electrical Engineering, Electronic Engineering, Information Engineering
Research subject
Electrical Engineering
Identifiers
urn:nbn:se:kth:diva-214857 (URN)978-94-6233-738-1 (ISBN)
Public defence
2017-11-17, Senaatszaal, Mekelweg 5, Delft, 15:00 (English)
Opponent
Supervisors
Note

QC 20170925

Available from: 2017-09-25 Created: 2017-09-24 Last updated: 2017-10-04Bibliographically approved

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