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Efficient investment signals for distributed generation

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  • Vogel, Philip
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    Abstract

    Distributed generation units are desirable from an environmental point of view but also have an impact on the costs of electricity grids at the distribution and transmission level. Therefore, investment planning has to consider all benefits and costs of DG to build DG sources at sites where they are economically efficient. Unfortunately, this is not an easy task in an unbundled industry where distribution and generation of electricity are not planned by one single institution. For this reason, this article analyses possible policy options for giving incentives to distributed generation and focuses on the long-term investment signals related to DG.

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    File URL: http://www.sciencedirect.com/science/article/B6V2W-4WFGRVG-2/2/932a240f70fe9282c32c2249e9f17e1f
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    Bibliographic Info

    Article provided by Elsevier in its journal Energy Policy.

    Volume (Year): 37 (2009)
    Issue (Month): 9 (September)
    Pages: 3665-3672

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    Handle: RePEc:eee:enepol:v:37:y:2009:i:9:p:3665-3672

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    Web page: http://www.elsevier.com/locate/enpol

    Related research

    Keywords: Distributed generation Deep charging Regulation;

    References

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    1. Jeffrey I. Bernstein & David E. M. Sappington, 1998. "Setting the X Factor in Price Cap Regulation Plans," NBER Working Papers 6622, National Bureau of Economic Research, Inc.
    2. Paul L Joskow, 2005. "Incentive Regulation In Theory And Practice - Electricity Distribution And Transmission Networks," Working Papers 0514, Massachusetts Institute of Technology, Center for Energy and Environmental Policy Research.
    3. Vogelsang, Ingo, 2002. "Incentive Regulation and Competition in Public Utility Markets: A 20-Year Perspective," Journal of Regulatory Economics, Springer, vol. 22(1), pages 5-27, July.
    4. Jean Tirole, 1988. "The Theory of Industrial Organization," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262200716, January.
    5. Cabral, Luis M B & Riordan, Michael H, 1989. "Incentives for Cost Reduction under Price Cap Regulation," Journal of Regulatory Economics, Springer, vol. 1(2), pages 93-102, June.
    6. Rivers, Nic & Jaccard, Mark, 2006. "Choice of environmental policy in the presence of learning by doing," Energy Economics, Elsevier, vol. 28(2), pages 223-242, March.
    7. Hoff, Thomas E & Wenger, Howard J & Farmer, Brian K, 1996. "Distributed generation : An alternative to electric utility investments in system capacity," Energy Policy, Elsevier, vol. 24(2), pages 137-147, February.
    8. Jean-Jacques Laffont & Jean Tirole, 1993. "A Theory of Incentives in Procurement and Regulation," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262121743, January.
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    Cited by:
    1. Miskinis, Vaclovas & Norvaisa, Egidijus & Galinis, Arvydas & Konstantinaviciute, Inga, 2011. "Trends of distributed generation development in Lithuania," Energy Policy, Elsevier, vol. 39(8), pages 4656-4663, August.
    2. AGRELL, Per & BOGETOFT, Peter, 2011. "Smart-grid investments, regulation and organization," CORE Discussion Papers 2011072, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    3. Poudineh, Rahmatallah & Jamasb, Tooraj, 2014. "Distributed generation, storage, demand response and energy efficiency as alternatives to grid capacity enhancement," Energy Policy, Elsevier, vol. 67(C), pages 222-231.

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