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Distributed generation and distribution pricing: Why do we need new tariff design methodologies?
KTH, School of Electrical Engineering (EES).
KTH, School of Electrical Engineering (EES).
KTH, School of Electrical Engineering (EES).
KTH, School of Electrical Engineering (EES), Electric Power Systems.ORCID iD: 0000-0002-8189-2420
2015 (English)In: Electric power systems research, ISSN 0378-7796, Vol. 119, 370-376 p.Article, review/survey (Refereed) Published
Abstract [en]

Due to the increasing amount of DG (distributed generation) in distribution grids, new challenges are arising in the distribution sector in many countries. Depending on the DG penetration, location, concentration, size and generation technology, the DG impact on network costs can be either negative or positive. These additional costs or benefits can be allocated to the DG owners through network tariffs. New cost allocation methodologies, based on a cost causation principle, are therefore required. This paper addresses several issues arising within network tariff design due to the integration of DG. Furthermore, it reviews the methodologies proposed so far to tackle those issues. Recommendations for setting up a new, cost causation-based, methodology are finally drawn.

Place, publisher, year, edition, pages
2015. Vol. 119, 370-376 p.
Keyword [en]
Distributed generation, Distribution tariffs, Cost allocation methodologies, Net Metering, Cost Causality Principle, Innovative Tariffs
National Category
Electrical Engineering, Electronic Engineering, Information Engineering
URN: urn:nbn:se:kth:diva-159969DOI: 10.1016/j.epsr.2014.10.021ISI: 000347756700041ScopusID: 2-s2.0-84910679389OAI: diva2:793152

QC 20150306

Available from: 2015-03-06 Created: 2015-02-12 Last updated: 2015-10-09Bibliographically approved
In thesis
1. Impact of Economic Regulation on Distributed Generation Integration in Electricity Distribution Grids
Open this publication in new window or tab >>Impact of Economic Regulation on Distributed Generation Integration in Electricity Distribution Grids
2015 (English)Doctoral thesis, comprehensive summary (Other academic)
Abstract [en]

Energy policies in favor of a larger adoption of renewable energy sources for electricity production purposes and the significant progress of several renewable technologies are among the main drivers behind an increasing integration of distributed generation (DG) in distribution networks.

DG affects distribution network planning and operation and, consequently, higher or lower network costs than in a traditional passive network scenario arise.

Two main complementary tools for an efficient integration of DG have been identified in this thesis: (i) a sound economic regulation of Distribution System Operators (DSOs) for taking into account DG-driven potential costs and accordingly remunerating DSOs, and (ii) network tariff design, in order to allocate network costs and re-distribute potential benefits to different grid users.

Distribution economic regulations vary from country to country with grid characteristics and regulatory customs. In order for Regulators to promote the integration of DG units according to policy objectives, the potential impact of DG on the different distribution costs needs to be analyzed and quantitatively assessed: in this thesis, these objectives are achieved by using a novel model that combines the technical characteristics of distribution grids with the regulatory details specific of each regulation.

Once computed, DSOs' total allowed revenue is allocated to different users' categories according to the adopted tariff structures. This thesis focuses on the challenges arising within the traditional paradigm of distribution tariff design when an increasing amount of DG is connected to the grids. In particular, the consequences of DG exemption from distribution tariffs and the application of load-tailored tariff schemes to DG are investigated, both from a qualitative and quantitative point of view; cross subsidies between consumers and DG owners are computed by applying a cost causality principle.

Place, publisher, year, edition, pages
Stockholm: KTH Royal Institute of Technology, 2015. xi, 90 p.
TRITA-EE, ISSN 1653-5146 ; 2015:75
Distributed generation, distribution economic regulation, regulatory impact, distribution tariff design, cost allocation methodologies, cross subsidies
National Category
Engineering and Technology
Research subject
Electrical Engineering
urn:nbn:se:kth:diva-174342 (URN)978-91-7595-715-9 (ISBN)
Public defence
2015-11-02, F3, Lindstedtsvägen 26, KTH, Stockholm, 10:00 (English)

The Doctoral Degrees issued upon completion of the programme are issued by Comillas Pontifical University, Delft University of Technology and KTH Royal Institute of Technology. The invested degrees are official in Spain, the Netherlands and Sweden, respectively. QC 20151009

Available from: 2015-10-09 Created: 2015-10-05 Last updated: 2015-10-09Bibliographically approved

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Picciariello, AngelaSöder, Lennart
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