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

FSR Energy Seminar Series with Professor R. Baldick (University of Texas at Austin)

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 energy and capacity parameters.

In this research, the grid cost recovery problem for the Distribution System Operator is modelled as a non-cooperative game between (more than ever) elastic consumers. It is demonstrated that in this new state of the world both efficiency and equity issues can arise when distribution network charges are ill-designed.

Presenter: Tim Schittekatte (FSR)

Invited Discussant: Prof. Ross Baldick

The Seminar is organised by the Research Team of the Florence School of Regulation – Energy and open to all EUI members.