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Electricity utility business not as usual

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  • Sioshansi, Fereidoon P.

Abstract

A number of the electric power industry’s dimension are rapidly changing including generation, transmission, distribution and, most importantly, in relation to its customers. The fastest and most pronounced transformation is taking place in distributed energy resources or DERs — which include both energy efficiency improvements and distributed generation. The former allows consumers to use less; the latter allows them to generate more of what they need. Combined, they are turning an increasing number of consumers into prosumers, eroding utility revenues and threatening the historical business model, which has been based on fixed tariffs applied to volumetric consumption. This paper examines the ramifications of these developments and their implications for the power sector.

Suggested Citation

  • Sioshansi, Fereidoon P., 2015. "Electricity utility business not as usual," Economic Analysis and Policy, Elsevier, vol. 48(C), pages 1-11.
    • Handle: RePEc:eee:ecanpo:v:48:y:2015:i:c:p:1-11
    DOI: 10.1016/j.eap.2015.11.015
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    Cited by:

    1. Young, Sharon & Bruce, Anna & MacGill, Iain, 2019. "Potential impacts of residential PV and battery storage on Australia's electricity networks under different tariffs," Energy Policy, Elsevier, vol. 128(C), pages 616-627.
    2. Rabindra Nepal & Flavio Menezes, 2017. "Regulatory Reforms in Small Energy Systems: Experience from Australia's Northern Territory Electricity Market," Economic Papers, The Economic Society of Australia, vol. 36(3), pages 300-316, September.
    3. Rabindra Nepal & Tooraj Jamasb & Anupama Sen & Lawrence Cram, 2017. "Small Systems, Big Targets: Power Sector Reforms and Renewable Energy Development in Small Electricity Systems," Working Papers EPRG 1709, Energy Policy Research Group, Cambridge Judge Business School, University of Cambridge.
    4. Nepal, Rabindra & Jamasb, Tooraj & Sen, Anupama, 2018. "Small systems, big targets: Power sector reforms and renewable energy in small systems," Energy Policy, Elsevier, vol. 116(C), pages 19-29.
    5. Burgio, Alessandro & Menniti, Daniele & Sorrentino, Nicola & Pinnarelli, Anna & Motta, Michele, 2018. "A compact nanogrid for home applications with a behaviour-tree-based central controller," Applied Energy, Elsevier, vol. 225(C), pages 14-26.
    6. Marta Guerra-Mota & Thereza Aquino & Isabel Soares, 2018. "European electricity utilities managing energy transition challenges," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 20(1), pages 213-230, December.
    7. Lonergan, Katherine Emma & Suter, Nicolas & Sansavini, Giovanni, 2023. "Energy systems modelling for just transitions," Energy Policy, Elsevier, vol. 183(C).
    8. Michael Hamwi & Iban Lizarralde, 2018. "Energy entrepreneurship business models innovation: insights from European emerging firms," Post-Print hal-01961930, HAL.
    9. Lonergan, Katherine Emma & Sansavini, Giovanni, 2022. "Business structure of electricity distribution system operator and effect on solar photovoltaic uptake: An empirical case study for Switzerland," Energy Policy, Elsevier, vol. 160(C).

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