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Electricity network charging in the presence of distributed energy resources: principles, problems and solutions

Accepted version
Peer-reviewed

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Authors

Pollitt, MG 

Abstract

This paper discusses the principles of electricity network charging in the light of increasing amounts of distributed generation and the potential for significant increases in electric vehicles or distributed electrical energy storage. We outline cost reflective pricing, traditional public service pricing, platform market pricing and customer- focused business model pricing. We focus on the particular problem of how to recover network fixed costs and a recent example from Australia. We conclude that there are serious issues for regulators to address, but that potential solutions at the distribution level may already exist at the transmission level.

Description

Keywords

network charging methodology, distribution charges, distributed energy resources, regulation

Journal Title

Economics of Energy and Environmental Policy

Conference Name

Journal ISSN

2160-5882
2160-5890

Volume Title

7

Publisher

International Association for Energy Economics (IAEE)
Sponsorship
Engineering and Physical Sciences Research Council (EP/L014386/1)
EPSRC