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Network capacity charge for sustainability and energy equity: A model-based analysis

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  • Khalilpour, Kaveh R.
  • Lusis, Peter

Abstract

It is long known that the afternoon peak demand accounts for over-investment in the electricity network assets. This results in a high price of delivered electricity which does not fairly differentiate between peak and non-peak users. Energy tariff is proven to be one of the best demand-side management (DSM) tools for shaping consumers’ behaviour. While electricity pricing models, such as inclining block and time-of-use tariffs, have received decent attention as successful mechanisms, there are little discussions about another efficient tariff known as a rollover network capacity charge. It is a penalty for the highest recorded power usage over the previous reading cycle (or year) which is introduced to commercial users in some jurisdictions.

Suggested Citation

  • Khalilpour, Kaveh R. & Lusis, Peter, 2020. "Network capacity charge for sustainability and energy equity: A model-based analysis," Applied Energy, Elsevier, vol. 266(C).
    • Handle: RePEc:eee:appene:v:266:y:2020:i:c:s0306261920303597
    DOI: 10.1016/j.apenergy.2020.114847
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