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The role of utilities in developing low carbon, electric megacities

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  • Kennedy, Chris
  • Stewart, Iain D.
  • Facchini, Angelo
  • Mele, Renata

Abstract

Development of electric cities, with low carbon power supply, is a key strategy for reducing global CO2 emissions. We analyze the role of electric utilities as important actors to catalyze the transition to electric cites, drawing upon data for the world's 27 megacities. Progress towards the ideal electric city is most advanced for Paris, Rio de Janeiro, Sao Paulo and Buenos Aires for low carbon electricity, while Indian megacities have relatively high use of carbon-intensive electricity as a percentage of total energy use. There is wide variety in the structure of markets for electricity provision in megacities, with a dominant, public utility being the most common model. We review literature on electricity sector business models and broadly propose future models dependent on the predominance of locally dispersed generation and the nature of the ownership of the electric grid within the city. Where a high proportion of electricity can be provided by locally distributed supply within a city, the role of utilities could predominantly become that of enabler of exchange with the grid, but new pricing structures are required. A further challenge for utilities in enabling the electric city is to provide a higher level of resilience to events that disrupt power supply.

Suggested Citation

  • Kennedy, Chris & Stewart, Iain D. & Facchini, Angelo & Mele, Renata, 2017. "The role of utilities in developing low carbon, electric megacities," Energy Policy, Elsevier, vol. 106(C), pages 122-128.
    • Handle: RePEc:eee:enepol:v:106:y:2017:i:c:p:122-128
    DOI: 10.1016/j.enpol.2017.02.047
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    Cited by:

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    2. Bagheri, Mehdi & Delbari, Seyed Hamid & Pakzadmanesh, Mina & Kennedy, Christopher A., 2019. "City-integrated renewable energy design for low-carbon and climate-resilient communities," Applied Energy, Elsevier, vol. 239(C), pages 1212-1225.
    3. Zhang, Wei & Valencia, Andrea & Gu, Lixing & Zheng, Qipeng P. & Chang, Ni-Bin, 2020. "Integrating emerging and existing renewable energy technologies into a community-scale microgrid in an energy-water nexus for resilience improvement," Applied Energy, Elsevier, vol. 279(C).
    4. María A. Quintás & Ana I. Martínez-Senra & Antonio Sartal, 2018. "The Role of SMEs’ Green Business Models in the Transition to a Low-Carbon Economy: Differences in Their Design and Degree of Adoption Stemming from Business Size," Sustainability, MDPI, vol. 10(6), pages 1-20, June.
    5. Scala, Antonio & Facchini, Angelo & Perna, Umberto & Basosi, Riccardo, 2019. "Portfolio analysis and geographical allocation of renewable sources: A stochastic approach," Energy Policy, Elsevier, vol. 125(C), pages 154-159.
    6. 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).
    7. Kennedy, Christopher, 2022. "The Intersection of Biophysical Economics and Political Economy," Ecological Economics, Elsevier, vol. 192(C).
    8. Matti Grosse, 2018. "How User-Innovators Pave the Way for a Sustainable Energy Future: A Study among German Energy Enthusiasts," Sustainability, MDPI, vol. 10(12), pages 1-16, December.
    9. Bagheri, Mehdi & Shirzadi, Navid & Bazdar, Elahe & Kennedy, Christopher A., 2018. "Optimal planning of hybrid renewable energy infrastructure for urban sustainability: Green Vancouver," Renewable and Sustainable Energy Reviews, Elsevier, vol. 95(C), pages 254-264.

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