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The role of distribution network operators in promoting cost-effective distributed generation: Lessons from the United States of America for Europe

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  • Anaya, Karim L.
  • Pollitt, Michael G.

Abstract

This paper explores the different competitive mechanisms applied by electric utilities from the US in promoting cost-effective Distributed Energy Resources (DER) – with a focus on Distributed Generation (DG) – and the challenges that electric utilities are facing due to the increase in DG connections. Cases studies from California, Oregon, Colorado and New York have been selected. The case studies refer to two kinds of competitive mechanisms: Request for Proposals (RFP) and auctions (Renewable Auction Mechanism). A similar behaviour is observed across electric utilities in the way in which competitive auction mechanisms are being managed; however the more sophisticated auction designs are observed in the RFPs. The study proposes a set of auction design elements with a focus on the UK context and examines the role of energy regulators in the design of well-structured auction mechanisms. We think that the experience cited in the four case studies can be replicated by Distribution System Operators (DSOs) from Europe; however unbundling rules established in the European Commission third energy package need to be taken into consideration.

Suggested Citation

  • Anaya, Karim L. & Pollitt, Michael G., 2015. "The role of distribution network operators in promoting cost-effective distributed generation: Lessons from the United States of America for Europe," Renewable and Sustainable Energy Reviews, Elsevier, vol. 51(C), pages 484-496.
    • Handle: RePEc:eee:rensus:v:51:y:2015:i:c:p:484-496
    DOI: 10.1016/j.rser.2015.05.046
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    Cited by:

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    8. Detroja, Ketan P., 2016. "Optimal autonomous microgrid operation: A holistic view," Applied Energy, Elsevier, vol. 173(C), pages 320-330.
    9. Khan, Muhammad T. & Thopil, George Alex & Lalk, Jorg, 2016. "Review of proposals for practical power sector restructuring and reforms in a dynamic electricity supply industry," Renewable and Sustainable Energy Reviews, Elsevier, vol. 62(C), pages 326-335.
    10. Aquila, Giancarlo & Pamplona, Edson de Oliveira & Queiroz, Anderson Rodrigo de & Rotela Junior, Paulo & Fonseca, Marcelo Nunes, 2017. "An overview of incentive policies for the expansion of renewable energy generation in electricity power systems and the Brazilian experience," Renewable and Sustainable Energy Reviews, Elsevier, vol. 70(C), pages 1090-1098.
    11. Tian-tian Feng & Yi-sheng Yang & Yu-heng Yang & Dan-dan Wang, 2017. "Application Status and Problem Investigation of Distributed Generation in China: The Case of Natural Gas, Solar and Wind Resources," Sustainability, MDPI, vol. 9(6), pages 1-19, June.

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