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Electricity

News

11.04.2017

Just published! Future-proof tariff design | FSR Working Paper

Future-proof tariff design : recovering sunk grid costs in a world where consumers are pushing back Authors: MEEUS Leonardo, MOMBER Ilan, SCHITTEKATTE Tim New Working […] read more

Electricity

Nicolo Rossetto

Topic of the Month

11.04.2017

Is Europe heading towards a seamless transmission system for electricity?

Written by Nicolò Rossetto The internal market for electricity: not just a story of market coupling The EU claims to have an internal market for electricity […] read more

Electricity

Pradyumna Bhagwat

Topic of the Month

27.02.2017

Driving on the electricity highway

Written by Pradyumna Bhagwat It is estimated that one in every hundred cars sold today is powered by electricity. The yearly sales of electric vehicles (EVs), […] read more

Electricity

Pradyumna Bhagwat

Topic of the Month

21.02.2017

The “balancing act” of integrating batteries into the market

Written by Pradyumna Bhagwat The use of fast responding resources such as batteries for balancing services has the potential to improve operational and economic efficiency and […] read more

Electricity

Pradyumna Bhagwat

Topic of the Month

14.02.2017

Batteries: Who will master the jack of all trades?

Written by Pradyumna Bhagwat One of the key debates on the topic of batteries revolves around its ownership. In this context, ownership could be defined, as […] read more

Electricity

Pradyumna Bhagwat

Topic of the Month

7.02.2017

Batteries: The jack of all trades

Written by Pradyumna Bhagwat The EU 2020 energy and climate targets have led to a significant increase in the share of renewable energy sources in the […] read more

Electricity

ilaria conti, jean-michel, nicolo rosetto

News

6.02.2017

3 Ds scenarios: the regulatory challenges in the age of Decarbonisation, Digitalisation and Decentralisation

What is the right balance between data protection and security on one hand and innovation and competition on the other? What are the main regulatory […] read more

Electricity

Leonardo Meeus

Topic of the Month

31.01.2017

My take on distributed electricity storage

Written by Leonardo Meeus The issue with existing batteries is that they suck Here is an abstract from the speech Elon Musk gave in 2015 to […] read more

Electricity

Leonardo Meeus

Topic of the Month

25.01.2017

My take on electric vehicle charging infrastructure debate

Written by Leonardo Meeus At an FSR Regulatory Policy Workshop this month, jointly organised by the transport and energy colleagues, we learned that the electric vehicle […] read more

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Just published! Future-proof tariff design | FSR Working Paper

- Electricity

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

Authors: MEEUS Leonardo, MOMBER Ilan, SCHITTEKATTE Tim

New Working Paper from FSR Energy

Traditional analysis of distribution grid user’s reaction to tariffs assumes a low price sensitivity and a lack of alternative technologies to grid connection. This is radically changing with two technology breakthroughs: (1) Photovoltaics (PV) enable domestic and commercial consumers to self-produce energy; (2) Batteries allow self-producers to set both their grid energy and capacity parameters.

Contributing to the state of the art, the grid cost recovery problem is modeled as a non-cooperative game between consumers. In this game, the availability and costs of new technologies (such as PV and batteries) strategically interact with tariff structures. Four states of the world for user’s access to new 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 the new distribution world -open by new technology choices for grid users- is highly interactive and threatens grid regulation not understanding it.

Download the working paper

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