A generic economic framework for electric rate design with prosumers
| Autor: | Mahelet G. Fikru, Casey I. Canfield |
|---|---|
| Rok vydání: | 2020 |
| Předmět: |
Marginal cost
Returns to scale Renewable Energy Sustainability and the Environment business.industry Economic framework 020209 energy 02 engineering and technology Environmental economics 021001 nanoscience & nanotechnology Grid Electricity generation Photovoltaics Distributed generation 0202 electrical engineering electronic engineering information engineering Economics General Materials Science Electricity 0210 nano-technology business |
| Zdroj: | Solar Energy. 211:1325-1334 |
| ISSN: | 0038-092X |
| DOI: | 10.1016/j.solener.2020.10.014 |
| Popis: | Location-varying electric rates may incentivize distributed energy resources (DERs) with lower system costs. However, the distributional impact among prosumers versus traditional consumers is not clear. This study presents a generic economic framework for evaluating novel rate designs. The study derives conditions under which large solar systems impose a higher marginal cost on the grid and examines the implication of different rate designs for cross-subsidy. Our findings suggest that location-varying rates remove all cross-subsidy effects except in the case where returns to scale in electricity production are low. In addition, location-varying rates lower the electricity bill of prosumers and consumers. Location-varying rates may better incentivize DER adoption in locations that minimize system-level costs. |
| Databáze: | OpenAIRE |
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