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

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    Publication type
    Vlerick strategic journal article
    Author
    Schittekatte, Tim
    Momber, Ilan
    Meeus, Leonardo
    Publication Year
    2018
    Journal
    Energy Economics
    Publication Volume
    70
    Publication Issue
    February
    Publication Begin page
    484
    Publication End page
    498
    
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    Abstract
    Traditional analysis of distribution network tariff design assumes a lack of alternatives to grid connection for the fulfilment of consumers' electricity needs. This is radically changing with breakthroughs in two technologies: (1) Photovoltaics (PV) enable domestic and commercial consumers to self-produce energy; (2) Batteries allow consumers and self-producers to gain control over their grid energy and capacity parameters. Contributing to the state of the art, the grid cost recovery problem for the Distribution System Operator (DSO) is modelled as a non-cooperative game between consumers. In this game, the availability and costs of the two named technologies strategically interact with tariff structures. Four states of the world for user's access to 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 in a state of the world with new technology choices for grid users both efficiency and equity issues can arise when distribution network charges are ill-designed.
    Keyword
    Batteries, Distribution Network Tariff, Non-cooperative Behaviour, Optimisation, Photovoltaics
    Knowledge Domain/Industry
    Entrepreneurship
    Special Industries : Energy
    DOI
    10.1016/j.eneco.2018.01.028
    URI
    http://hdl.handle.net/20.500.12127/5942
    ae974a485f413a2113503eed53cd6c53
    10.1016/j.eneco.2018.01.028
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