Smart-grid investments, regulation and organization
Grid infrastructure managers worldwide are facing demands for reinvestments in new assets with higher on-grid and off-grid functionality in order to meet new environmental targets. The roles of the current actors will change as the vertical interfaces between regulated and unregulated tasks become blurred. In this paper, we characterize some of the effects of new asset investments policy on the network tasks, assets and costs and contrast this with the assumptions of the current economic network regulation. To provide structure, we present a model of investment provision under regulation between a distribution system operator and a potential investor–generator. The results from the model confirm the hypothesis that network regulation should find a focal point, should integrate externalities in the performance assessment and should avoid wide delegation of contracting-billing for smart-grid investments.
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Michael G. Pollitt, 2008. "The Future of Electricity (and Gas) Regulation in a Low-carbon Policy World," The Energy Journal, International Association for Energy Economics, vol. 0(Special I), pages 63-94.
- Littlechild Stephen, 2002.
"Competitive Bidding for a Long-Term Electricity Distribution Contract,"
Review of Network Economics,
De Gruyter, vol. 1(1), pages 1-38, March.
- Littlechild, S.C., 2001. "Competitive Bidding for a Long-term Electricity Distribution Contract," Cambridge Working Papers in Economics 0112, Faculty of Economics, University of Cambridge.
- Dilip Mookherjee, 2006.
"Decentralization, Hierarchies, and Incentives: A Mechanism Design Perspective,"
Journal of Economic Literature,
American Economic Association, vol. 44(2), pages 367-390, June.
- Dilip Mookherjee, 2005. "Decentralization, Hierarchies and Incentives: A Mechanism Design Perspective," Boston University - Department of Economics - Working Papers Series WP2005-034, Boston University - Department of Economics, revised Sep 2005.
- Joskow, P.L., 2006.
"Incentive Regulation in Theory and Practice: Electricity Distribution and Transmission Networks,"
Cambridge Working Papers in Economics
0607, Faculty of Economics, University of Cambridge.
- Paul L. Joskow, 2013. "Incentive Regulation in Theory and Practice: Electricity Distribution and Transmission Networks," NBER Chapters, in: Economic Regulation and Its Reform: What Have We Learned?, pages 291-344 National Bureau of Economic Research, Inc.
- 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.
- Jean Tirole, 1988. "The Theory of Industrial Organization," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262200716, June.
- Alessandro Sterlacchini, 2006.
"The R&D Drop in European Utilities. Should we care about it?,"
DRUID Working Papers
06-19, DRUID, Copenhagen Business School, Department of Industrial Economics and Strategy/Aalborg University, Department of Business Studies.
- Sterlacchini, Alessandro, 2006. "The R&D drop in European utilities. Should we care about it?," MPRA Paper 31, University Library of Munich, Germany.
- PER AGRELL & Peter Bogetoft & Jørgen Tind, 2005.
"DEA and Dynamic Yardstick Competition in Scandinavian Electricity Distribution,"
Journal of Productivity Analysis,
Springer, vol. 23(2), pages 173-201, 05.
- AGRELL, Per J. & BOGETOFT, Peter & TIND, Jorgen, . "DEA and dynamic yardstick competition in Scandinavian electricity distribution," CORE Discussion Papers RP 1837, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- Yeon-Koo Che & Seung-Weon Yoo, 2001.
"Optimal Incentives for Teams,"
American Economic Review,
American Economic Association, vol. 91(3), pages 525-541, June.
- Perez-Castrillo, J.D. & Macho-Stadler, I., 1992.
"Centralized and Decentralized Contracts in a Moral Hazad Environment,"
UFAE and IAE Working Papers
179.92, Unitat de Fonaments de l'Anàlisi Econòmica (UAB) and Institut d'Anàlisi Econòmica (CSIC).
- Macho-Stadler, Ines & Perez-Castrillo, J David, 1998. "Centralized and Decentralized Contracts in a Moral Hazard Environment," Journal of Industrial Economics, Wiley Blackwell, vol. 46(4), pages 489-510, December.
- Sterlacchini, Alessandro, 2012.
"Energy R&D in private and state-owned utilities: An analysis of the major world electric companies,"
Elsevier, vol. 41(C), pages 494-506.
- Alessandro STERLACCHINI, 2010. "Energy R&D in private and state-owned utilities: an analysis of the major world electric companies," Departmental Working Papers 2010-29, Department of Economics, Management and Quantitative Methods at Università degli Studi di Milano.
- Sterlacchini, Alessandro, 2010. "Energy R&D in private and state-owned utilities: an analysis of the major world electric companies," MPRA Paper 20972, University Library of Munich, Germany.
- Agrell, Per J. & Bogetoft, Peter & Tind, Jorgen, 2002. "Incentive plans for productive efficiency, innovation and learning," International Journal of Production Economics, Elsevier, vol. 78(1), pages 1-11, July.
- M.E. Beesley & S.C. Littlechild, 1989. "The Regulation of Privatized Monopolies in the United Kingdom," RAND Journal of Economics, The RAND Corporation, vol. 20(3), pages 454-472, Autumn.
- Vogel, Philip, 2009. "Efficient investment signals for distributed generation," Energy Policy, Elsevier, vol. 37(9), pages 3665-3672, September.
- Pepermans, G. & Driesen, J. & Haeseldonckx, D. & Belmans, R. & D'haeseleer, W., 2005.
"Distributed generation: definition, benefits and issues,"
Elsevier, vol. 33(6), pages 787-798, April.
- Guido Pepermans & Johan Driesen & Dries Haeseldonckx, 2003. "Distributed generation: definition, benefits and issues," Energy, Transport and Environment Working Papers Series ete0308, Katholieke Universiteit Leuven, Centrum voor Economische Studiën, Energy, Transport and Environment.
- Littlechild, Stephen C. & Skerk, Carlos J., 2008. "Transmission expansion in Argentina 1: The origins of policy," Energy Economics, Elsevier, vol. 30(4), pages 1367-1384, July.
- 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, June.
- Lazear, Edward P, 1989. "Pay Equality and Industrial Politics," Journal of Political Economy, University of Chicago Press, vol. 97(3), pages 561-80, June.
- Macho-Stadler, Ines & Perez-Castrillo, J. David, 1993.
"Moral hazard with several agents : The gains from cooperation,"
International Journal of Industrial Organization,
Elsevier, vol. 11(1), pages 73-100, March.
- Macho-Stadler, I. & Perez-Castrillo, J.D., 1991. "Moral Hazard with Several Agents: The Gains From Cooperation," DELTA Working Papers 91-26, DELTA (Ecole normale supérieure).
- Richard A. Posner, 1974.
"Theories of Economic Regulation,"
Bell Journal of Economics,
The RAND Corporation, vol. 5(2), pages 335-358, Autumn.
- Nahum D. Melumad & Dilip Mookherjee & Stefan Reichelstein, 1995. "Hierarchical Decentralization of Incentive Contracts," RAND Journal of Economics, The RAND Corporation, vol. 26(4), pages 654-672, Winter.
- repec:cor:louvrp:-2376 is not listed on IDEAS
- Barry J. Nalebuff & Joseph E. Stiglitz, 1983. "Prices and Incentives: Towards a General Theory of Compensation and Competition," Bell Journal of Economics, The RAND Corporation, vol. 14(1), pages 21-43, Spring.
- Jamasb, Tooraj & Pollitt, Michael, 2008. "Liberalisation and R&D in network industries: The case of the electricity industry," Research Policy, Elsevier, vol. 37(6-7), pages 995-1008, July.
- Oliver E. Williamson, 1976. "Franchise Bidding for Natural Monopolies -- in General and with Respect to CATV," Bell Journal of Economics, The RAND Corporation, vol. 7(1), pages 73-104, Spring.
- Robert W. Fri, 2003. "The Role of Knowledge: Technological Innovation in the Energy System," The Energy Journal, International Association for Energy Economics, vol. 0(Number 4), pages 51-74.
- Mookherjee, Dilip, 1984. "Optimal Incentive Schemes with Many Agents," Review of Economic Studies, Wiley Blackwell, vol. 51(3), pages 433-46, July.
When requesting a correction, please mention this item's handle: RePEc:eee:enepol:v:52:y:2013:i:c:p:656-666. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Zhang, Lei)
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 references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link 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 profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.