IDEAS home Printed from https://ideas.repec.org/a/eee/enepol/v110y2017icp422-433.html
   My bibliography  Save this article

Network operators and the transition to decentralised electricity: An Australian socio-technical case study

Author

Listed:
  • Simpson, Genevieve

Abstract

A socio-technical transitions theory approach is used to consider the extent to which network operators in Western Australia are perceived as facilitating, or blocking, a transition towards a distributed generation-based network. A total of 48 semi-structured, in-depth interviews with community, industry and government representatives were performed in 2015. This research finds that network operators are perceived as ‘pushing back’ on distributed generation by increasing the complexity, cost and unreliability of connection applications, by restricting further connection of distributed generation to the network, and by requiring consumers to invest in technology for grid protection. Interview respondents suggest network operators do this because: distributed generation creates technical issues at the distribution-scale of the network; distributed generation can reduce financial revenue for the network operator; as a response to a lack of strategic direction on how network operators should respond to distributed generation; and due to a ‘risk averse’ engineering culture that rejects the unknown. Government intervention may be required to direct network operators to address technical implications of increased distributed generation and redevelop tariff models to allow fair cost recovery of network assets. However, government intervention may lead to adverse outcomes, including in relation to the cost-recovery of state-owned assets.

Suggested Citation

  • Simpson, Genevieve, 2017. "Network operators and the transition to decentralised electricity: An Australian socio-technical case study," Energy Policy, Elsevier, vol. 110(C), pages 422-433.
  • Handle: RePEc:eee:enepol:v:110:y:2017:i:c:p:422-433
    DOI: 10.1016/j.enpol.2017.08.042
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0301421517305463
    Download Restriction: Full text for ScienceDirect subscribers only

    File URL: https://libkey.io/10.1016/j.enpol.2017.08.042?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Sioshansi, Ramteen, 2016. "Retail electricity tariff and mechanism design to incentivize distributed renewable generation," Energy Policy, Elsevier, vol. 95(C), pages 498-508.
    2. McConnell, Dylan & Hearps, Patrick & Eales, Dominic & Sandiford, Mike & Dunn, Rebecca & Wright, Matthew & Bateman, Lachlan, 2013. "Retrospective modeling of the merit-order effect on wholesale electricity prices from distributed photovoltaic generation in the Australian National Electricity Market," Energy Policy, Elsevier, vol. 58(C), pages 17-27.
    3. Unknown, 2016. "Western Economics Forum," Western Economics Forum, Western Agricultural Economics Association, vol. 15(1), pages 1-2.
    4. Oliva H., Sebastian & MacGill, Iain & Passey, Rob, 2016. "Assessing the short-term revenue impacts of residential PV systems on electricity customers, retailers and network service providers," Renewable and Sustainable Energy Reviews, Elsevier, vol. 54(C), pages 1494-1505.
    5. Khalilpour, Rajab & Vassallo, Anthony, 2015. "Leaving the grid: An ambition or a real choice?," Energy Policy, Elsevier, vol. 82(C), pages 207-221.
    6. Yuki Uchida & Tetsuo Ono, 2020. "Inequality and education choice," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 27(4), pages 980-1018, August.
    7. Heras-Saizarbitoria, Iñaki & Cilleruelo, Ernesto & Zamanillo, Ibon, 2011. "Public acceptance of renewables and the media: an analysis of the Spanish PV solar experience," Renewable and Sustainable Energy Reviews, Elsevier, vol. 15(9), pages 4685-4696.
    8. Arthur van Benthem & Kenneth Gillingham & James Sweeney, 2008. "Learning-by-Doing and the Optimal Solar Policy in California," The Energy Journal, International Association for Energy Economics, vol. 0(Number 3), pages 131-152.
    9. ., 1998. "Technological Change," Chapters, in: Heinz D. Kurz & Neri Salvadori (ed.), The Elgar Companion to Classical Economics, volume 0, chapter 127, Edward Elgar Publishing.
    10. Simpson, Genevieve & Clifton, Julian, 2016. "Subsidies for residential solar photovoltaic energy systems in Western Australia: Distributional, procedural and outcome justice," Renewable and Sustainable Energy Reviews, Elsevier, vol. 65(C), pages 262-273.
    11. Geels, Frank W. & Schot, Johan, 2007. "Typology of sociotechnical transition pathways," Research Policy, Elsevier, vol. 36(3), pages 399-417, April.
    12. Simshauser, Paul, 2016. "Distribution network prices and solar PV: Resolving rate instability and wealth transfers through demand tariffs," Energy Economics, Elsevier, vol. 54(C), pages 108-122.
    13. Arrow, Kenneth & Bolin, Bert & Costanza, Robert & Dasgupta, Partha & Folke, Carl & Holling, C.S. & Jansson, Bengt-Owe & Levin, Simon & Mäler, Karl-Göran & Perrings, Charles & Pimentel, David, 1996. "Economic growth, carrying capacity, and the environment," Environment and Development Economics, Cambridge University Press, vol. 1(1), pages 104-110, February.
    14. Elizabeth Shove & Gordon Walker, 2007. "Caution! Transitions Ahead: Politics, Practice, and Sustainable Transition Management," Environment and Planning A, , vol. 39(4), pages 763-770, April.
    15. Paul Simshauser, 2014. "From First Place to Last: The National Electricity Market's Policy-Induced ‘Energy Market Death Spiral’," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 47(4), pages 540-562, December.
    16. Nygrén, Nina A. & Kontio, Panu & Lyytimäki, Jari & Varho, Vilja & Tapio, Petri, 2015. "Early adopters boosting the diffusion of sustainable small-scale energy solutions," Renewable and Sustainable Energy Reviews, Elsevier, vol. 46(C), pages 79-87.
    17. Zangiabadi, Mansoureh & Feuillet, Rene & Lesani, Hamid & Hadj-Said, Nouredine & Kvaløy, Jan T., 2011. "Assessing the performance and benefits of customer distributed generation developers under uncertainties," Energy, Elsevier, vol. 36(3), pages 1703-1712.
    18. Byrnes, Liam & Brown, Colin, 2015. "Australia’s renewable energy policy: the case for intervention," MPRA Paper 64977, University Library of Munich, Germany.
    19. Kaywana Raeburn & Jim Engle-Warnick & Sonia Laszlo & Jian Li, 2016. "Learning in a Bandit Game and Technology Choice," CIRANO Working Papers 2016s-47, CIRANO.
    20. Simon Guy, 2006. "Designing Urban Knowledge: Competing Perspectives on Energy and Buildings," Environment and Planning C, , vol. 24(5), pages 645-659, October.
    21. Niesten, Eva, 2010. "Network investments and the integration of distributed generation: Regulatory recommendations for the Dutch electricity industry," Energy Policy, Elsevier, vol. 38(8), pages 4355-4362, August.
    22. Simpson, Genevieve & Clifton, Julian, 2015. "The emperor and the cowboys: The role of government policy and industry in the adoption of domestic solar microgeneration systems," Energy Policy, Elsevier, vol. 81(C), pages 141-151.
    23. Costanza, Robert, 1995. "Economic growth, carrying capacity, and the environment," Ecological Economics, Elsevier, vol. 15(2), pages 89-90, November.
    24. Antonelli, Cristiano, 1997. "The economics of path-dependence in industrial organization," International Journal of Industrial Organization, Elsevier, vol. 15(6), pages 643-675, October.
    25. Chu-Ping C. Vijverberg & Wim P. M. Vijverberg, 2016. "Pregibit: a family of binary choice models," Empirical Economics, Springer, vol. 50(3), pages 901-932, May.
    26. Solomon, Barry D. & Krishna, Karthik, 2011. "The coming sustainable energy transition: History, strategies, and outlook," Energy Policy, Elsevier, vol. 39(11), pages 7422-7431.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. López González, Diana María & Garcia Rendon, John, 2022. "Opportunities and challenges of mainstreaming distributed energy resources towards the transition to more efficient and resilient energy markets," Renewable and Sustainable Energy Reviews, Elsevier, vol. 157(C).
    2. Johansson, Petter & Vendel, Martin & Nuur, Cali, 2020. "Integrating distributed energy resources in electricity distribution systems: An explorative study of challenges facing DSOs in Sweden," Utilities Policy, Elsevier, vol. 67(C).
    3. Oduro, Richard A. & Taylor, Peter G., 2023. "Future pathways for energy networks: A review of international experiences in high income countries," Renewable and Sustainable Energy Reviews, Elsevier, vol. 171(C).
    4. Yasir Alsaedi & Gurudeo Anand Tularam & Victor Wong, 2021. "Impact of the Nature of Energy Management and Responses to Policies Regarding Solar and Wind Pricing: A Qualitative Study of the Australian Electricity Markets," International Journal of Energy Economics and Policy, Econjournals, vol. 11(3), pages 191-205.
    5. Damian Shaw-Williams & Connie Susilawati & Geoffrey Walker, 2018. "Value of Residential Investment in Photovoltaics and Batteries in Networks: A Techno-Economic Analysis," Energies, MDPI, vol. 11(4), pages 1-25, April.
    6. Shaw-Williams, Damian & Susilawati, Connie & Walker, Geoff & Varendorff, Jeremy, 2019. "Valuing the impact of residential photovoltaics and batteries on network electricity losses: An Australian case study," Utilities Policy, Elsevier, vol. 60(C), pages 1-1.
    7. Guidolin, Mariangela & Alpcan, Tansu, 2019. "Transition to sustainable energy generation in Australia: Interplay between coal, gas and renewables," Renewable Energy, Elsevier, vol. 139(C), pages 359-367.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Ruggiero, Salvatore & Varho, Vilja & Rikkonen, Pasi, 2015. "Transition to distributed energy generation in Finland: Prospects and barriers," Energy Policy, Elsevier, vol. 86(C), pages 433-443.
    2. Paul Simshauser & Tim Nelson & Joel Gilmore, 2022. "The sunshine state: implications from mass rooftop solar PV take-up rates in Queensland," Working Papers EPRG2219, Energy Policy Research Group, Cambridge Judge Business School, University of Cambridge.
    3. Barton, John & Davies, Lloyd & Dooley, Ben & Foxon, Timothy J. & Galloway, Stuart & Hammond, Geoffrey P. & O’Grady, Áine & Robertson, Elizabeth & Thomson, Murray, 2018. "Transition pathways for a UK low-carbon electricity system: Comparing scenarios and technology implications," Renewable and Sustainable Energy Reviews, Elsevier, vol. 82(P3), pages 2779-2790.
    4. Kivimaa, Paula & Kern, Florian, 2016. "Creative destruction or mere niche support? Innovation policy mixes for sustainability transitions," Research Policy, Elsevier, vol. 45(1), pages 205-217.
    5. Simpson, Genevieve & Clifton, Julian, 2016. "Subsidies for residential solar photovoltaic energy systems in Western Australia: Distributional, procedural and outcome justice," Renewable and Sustainable Energy Reviews, Elsevier, vol. 65(C), pages 262-273.
    6. Yuan, Jiahai & Xu, Yan & Hu, Zhen & Yu, Zhongfu & Liu, Jiangyan & Hu, Zhaoguang & Xu, Ming, 2012. "Managing electric power system transition in China," Renewable and Sustainable Energy Reviews, Elsevier, vol. 16(8), pages 5660-5677.
    7. Manning, Stephan & Reinecke, Juliane, 2016. "A modular governance architecture in-the-making: How transnational standard-setters govern sustainability transitions," Research Policy, Elsevier, vol. 45(3), pages 618-633.
    8. Hultman, Nathan E. & Malone, Elizabeth L. & Runci, Paul & Carlock, Gregory & Anderson, Kate L., 2012. "Factors in low-carbon energy transformations: Comparing nuclear and bioenergy in Brazil, Sweden, and the United States," Energy Policy, Elsevier, vol. 40(C), pages 131-146.
    9. Jochen Markard & Marco Suter & Karin Ingold, 2015. "Socio-technical transitions and policy change - Advocacy coalitions in Swiss energy policy," SPRU Working Paper Series 2015-13, SPRU - Science Policy Research Unit, University of Sussex Business School.
    10. Yamamoto, Yoshihiro, 2021. "A bidirectional payment system for mitigating the supply–demand imbalance among prosumers based on the core of coalitional game theory under the enhanced use of renewable energy," Energy Economics, Elsevier, vol. 96(C).
    11. Rauschmayer, Felix & Bauler, Tom & Schäpke, Niko, 2015. "Towards a thick understanding of sustainability transitions — Linking transition management, capabilities and social practices," Ecological Economics, Elsevier, vol. 109(C), pages 211-221.
    12. Esplin, Ryan & Nelson, Tim, 2022. "Redirecting solar feed in tariffs to residential battery storage: Would it be worth it?," Economic Analysis and Policy, Elsevier, vol. 73(C), pages 373-389.
    13. Bolton, Ronan & Hannon, Matthew, 2016. "Governing sustainability transitions through business model innovation: Towards a systems understanding," Research Policy, Elsevier, vol. 45(9), pages 1731-1742.
    14. Opschoor, J. (Hans) B., 1995. "Ecospace and the fall and rise of throughput intensity," Ecological Economics, Elsevier, vol. 15(2), pages 137-140, November.
    15. Kaika, Dimitra & Zervas, Efthimios, 2013. "The environmental Kuznets curve (EKC) theory. Part B: Critical issues," Energy Policy, Elsevier, vol. 62(C), pages 1403-1411.
    16. Bradford David F. & Fender Rebecca A & Shore Stephen H. & Wagner Martin, 2005. "The Environmental Kuznets Curve: Exploring a Fresh Specification," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 4(1), pages 1-30, June.
    17. Ghimire, Narishwar & Woodward, Richard T., 2013. "Under- and over-use of pesticides: An international analysis," Ecological Economics, Elsevier, vol. 89(C), pages 73-81.
    18. Jha, Raghbendra & Murthy, K. V. Bhanu, 2003. "An inverse global environmental Kuznets curve," Journal of Comparative Economics, Elsevier, vol. 31(2), pages 352-368, June.
    19. Shuaibing Zhang & Kaixu Zhao & Shuoyang Ji & Yafang Guo & Fengqi Wu & Jingxian Liu & Fei Xie, 2022. "Evolution Characteristics, Eco-Environmental Response and Influencing Factors of Production-Living-Ecological Space in the Qinghai–Tibet Plateau," Land, MDPI, vol. 11(7), pages 1-26, July.
    20. G. Mythili & Shibashis Mukherjee, 2011. "Examining Environmental Kuznets Curve for river effluents in India," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 13(3), pages 627-640, June.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:enepol:v:110:y:2017:i:c:p:422-433. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/enpol .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.