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Optimal grid tariffs with heterogeneous prosumers

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  • Gautier, Axel
  • Jacqmin, Julien
  • Poudou, Jean-Christophe

Abstract

Energy consumers can invest in photovoltaic (PV) panels and become prosumers. The benefit of such an investment depends on the regulatory framework. We consider a population of heterogeneous consumers, with respect to both the cost of decentralized production and their degree of self-consumption.it is efficient to have investment by low-cost and high self-consumption profiles. We determine the optimal tariff in the presence of heterogeneous prosumers. Net metering fails to screen consumers on the self-consumption dimension. Net purchasing can lead to the efficient investment if the tariffs are non-Coasian that is fixed fees exceed the grid operator’s fixed costs.

Suggested Citation

  • Gautier, Axel & Jacqmin, Julien & Poudou, Jean-Christophe, 2021. "Optimal grid tariffs with heterogeneous prosumers," Utilities Policy, Elsevier, vol. 68(C).
    • Handle: RePEc:eee:juipol:v:68:y:2021:i:c:s0957178720301338
    DOI: 10.1016/j.jup.2020.101140
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    Cited by:

    1. Sai Bravo & Carole Haritchabalet, 2023. "Prosumers: Grid Storage vs Small Fuel-Cell," Working Papers hal-04119625, HAL.
    2. Axel Gautier & Julien Jacqmin & Jean-Christophe Poudou, 2023. "The Energy Community and the Grid," Working Papers hal-04032253, HAL.
    3. Hashemi, Majid & Jenkins, Glenn & Milne, Frank, 2023. "Rooftop solar with net metering: An integrated investment appraisal," Renewable and Sustainable Energy Reviews, Elsevier, vol. 188(C).
    4. Rafael G. Nagel & Vitor Fernão Pires & Jony L. Silveira & Armando Cordeiro & Daniel Foito, 2023. "Financial Analysis of Household Photovoltaic Self-Consumption in the Context of the Vehicle-to-Home ( V2H ) in Portugal," Energies, MDPI, vol. 16(3), pages 1-21, January.
    5. Izabela Jonek-Kowalska, 2023. "Motives for the Use of Photovoltaic Installations in Poland against the Background of the Share of Solar Energy in the Structure of Energy Resources in the Developing Economies of Central and Eastern ," Resources, MDPI, vol. 12(8), pages 1-25, July.
    6. Ansarin, Mohammad & Ghiassi-Farrokhfal, Yashar & Ketter, Wolfgang & Collins, John, 2022. "A review of equity in electricity tariffs in the renewable energy era," Renewable and Sustainable Energy Reviews, Elsevier, vol. 161(C).
    7. Jeddi, Samir & Sitzmann, Amelie, 2021. "Network tariffs under different pricing schemes in a dynamically consistent framework," EWI Working Papers 2021-1, Energiewirtschaftliches Institut an der Universitaet zu Koeln (EWI).
    8. Sai Bravo & Carole Haritchabalet, 2023. "Prosumers: Grid Storage vs Small Fuel-Cell," Working papers of Transitions Energétiques et Environnementales (TREE) hal-04119625, HAL.

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    More about this item

    Keywords

    Decentralized production unit; Grid regulation; Solar panels; Grid tariffs;
    All these keywords.

    JEL classification:

    • D13 - Microeconomics - - Household Behavior - - - Household Production and Intrahouse Allocation
    • L51 - Industrial Organization - - Regulation and Industrial Policy - - - Economics of Regulation
    • L94 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Electric Utilities
    • Q42 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Alternative Energy Sources

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