IDEAS home Printed from https://ideas.repec.org/a/gam/jeners/v14y2021i4p1114-d502502.html
   My bibliography  Save this article

Prosumers’ Behavior under a Regulation That Encourages Strict Self-Sufficiency. The Case of Spanish Photovoltaic Micro-Generation

Author

Listed:
  • Pere Mir-Artigues

    (Energy Sustainability Research Group, University of Barcelona/UdL, 08007 Barcelona, Spain)

  • Pablo del Río

    (Institute for Public Policies and Goods, Consejo Superior de Investigaciones Científicas (CSIC), 28037 Madrid, Spain)

Abstract

The reduction of equipment costs encourages the diffusion of photovoltaic micro-generation, however, proper regulatory measures should be implemented to facilitate self-production dissemination and to promote the emergence of new electricity markets which integrate prosumers. The specific form of these markets will depend on the level of prosumers’ self-sufficiency and the type of grid to which they will be connected. Unfortunately, Spain has been an example of resistance to micro-generation deployment. However, some things have started to change recently, albeit only to a certain extent. This article explains the key elements of the latest regulation of photovoltaic micro-generation in Spain and, through a stylized model, describes the economic behavior of prosumers in such a regulatory framework. It is concluded that this regulation only encourages prosumer plants which are strictly focused on self-sufficiency because it discourages exports and limits capacities and this regulation discourages the smart renewal of the distribution grid because it prevents prosumers from participating in the electricity market. It is recommended that the aforementioned regulatory limits be removed and pilot experiences for the market participation of prosumers be promoted by creating the appropriate technical and regulatory conditions, for example, at the municipal level.

Suggested Citation

  • Pere Mir-Artigues & Pablo del Río, 2021. "Prosumers’ Behavior under a Regulation That Encourages Strict Self-Sufficiency. The Case of Spanish Photovoltaic Micro-Generation," Energies, MDPI, vol. 14(4), pages 1-19, February.
  • Handle: RePEc:gam:jeners:v:14:y:2021:i:4:p:1114-:d:502502
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/1996-1073/14/4/1114/pdf
    Download Restriction: no

    File URL: https://www.mdpi.com/1996-1073/14/4/1114/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Christiane Rosen and Reinhard Madlener, 2016. "Regulatory Options for Local Reserve Energy Markets: Implications for Prosumers, Utilities, and other Stakeholders," The Energy Journal, International Association for Energy Economics, vol. 0(Bollino-M).
    2. Wolf-Peter Schill, Alexander Zerrahn, and Friedrich Kunz, 2017. "Prosumage of solar electricity: pros, cons, and the system perspective," Economics of Energy & Environmental Policy, International Association for Energy Economics, vol. 0(Number 1).
    3. Claire M. Weiller & Michael G. Pollitt, 2013. "Platform Markets and Energy Services," Cambridge Working Papers in Economics 1361, Faculty of Economics, University of Cambridge.
    4. Khalilpour, Rajab & Vassallo, Anthony, 2015. "Leaving the grid: An ambition or a real choice?," Energy Policy, Elsevier, vol. 82(C), pages 207-221.
    5. López Prol, Javier & Steininger, Karl W., 2020. "Photovoltaic self-consumption is now profitable in Spain: Effects of the new regulation on prosumers’ internal rate of return," Energy Policy, Elsevier, vol. 146(C).
    6. De Boeck, L. & Van Asch, S. & De Bruecker, P. & Audenaert, A., 2016. "Comparison of support policies for residential photovoltaic systems in the major EU markets through investment profitability," Renewable Energy, Elsevier, vol. 87(P1), pages 42-53.
    7. Lang, Tillmann & Ammann, David & Girod, Bastien, 2016. "Profitability in absence of subsidies: A techno-economic analysis of rooftop photovoltaic self-consumption in residential and commercial buildings," Renewable Energy, Elsevier, vol. 87(P1), pages 77-87.
    8. de la Hoz, Jordi & Martín, Helena & Miret, Jaume & Castilla, Miguel & Guzman, Ramon, 2016. "Evaluating the 2014 retroactive regulatory framework applied to the grid connected PV systems in Spain," Applied Energy, Elsevier, vol. 170(C), pages 329-344.
    9. López Prol, Javier & Steininger, Karl W., 2017. "Photovoltaic self-consumption regulation in Spain: Profitability analysis and alternative regulation schemes," Energy Policy, Elsevier, vol. 108(C), pages 742-754.
    10. Zhang, Chenghua & Wu, Jianzhong & Zhou, Yue & Cheng, Meng & Long, Chao, 2018. "Peer-to-Peer energy trading in a Microgrid," Applied Energy, Elsevier, vol. 220(C), pages 1-12.
    11. Alam, Muhammad Raisul & St-Hilaire, Marc & Kunz, Thomas, 2019. "Peer-to-peer energy trading among smart homes," Applied Energy, Elsevier, vol. 238(C), pages 1434-1443.
    12. Mengelkamp, Esther & Gärttner, Johannes & Rock, Kerstin & Kessler, Scott & Orsini, Lawrence & Weinhardt, Christof, 2018. "Designing microgrid energy markets," Applied Energy, Elsevier, vol. 210(C), pages 870-880.
    13. Yael Parag & Benjamin K. Sovacool, 2016. "Electricity market design for the prosumer era," Nature Energy, Nature, vol. 1(4), pages 1-6, April.
    14. Alanne, Kari & Saari, Arto, 2006. "Distributed energy generation and sustainable development," Renewable and Sustainable Energy Reviews, Elsevier, vol. 10(6), pages 539-558, December.
    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. Cruz, Carlos & Alskaif, Tarek & Palomar, Esther & Bravo, Ignacio, 2023. "Prosumers integration in aggregated demand response systems," Energy Policy, Elsevier, vol. 182(C).
    2. Jordi de la Hoz & Helena Martín & José Matas, 2023. "Editorial on the Special Issue Entitled “Regulatory Frameworks Addressed to Promote Renewable Energy Sources and Microgrids. Regulatory Constraints and Implications on Conception, Design and Energy Ma," Energies, MDPI, vol. 16(13), pages 1-4, June.
    3. Inna Lazanyuk & Svetlana Ratner & Svetlana Revinova & Konstantin Gomonov & Swati Modi, 2023. "Diffusion of Renewable Microgeneration on the Side of End-User: Multiple Case Study," Energies, MDPI, vol. 16(6), pages 1-22, March.

    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. Zare, Amir & Mehdinejad, Mehdi & Abedi, Mehrdad, 2024. "Designing a decentralized peer-to-peer energy market for an active distribution network considering loss and transaction fee allocation, and fairness," Applied Energy, Elsevier, vol. 358(C).
    2. Karami, Mahdi & Madlener, Reinhard, 2022. "Business models for peer-to-peer energy trading in Germany based on households’ beliefs and preferences," Applied Energy, Elsevier, vol. 306(PB).
    3. Kobashi, Takuro & Yoshida, Takahiro & Yamagata, Yoshiki & Naito, Katsuhiko & Pfenninger, Stefan & Say, Kelvin & Takeda, Yasuhiro & Ahl, Amanda & Yarime, Masaru & Hara, Keishiro, 2020. "On the potential of “Photovoltaics + Electric vehicles” for deep decarbonization of Kyoto’s power systems: Techno-economic-social considerations," Applied Energy, Elsevier, vol. 275(C).
    4. López Prol, Javier & Paul, Arijit, 2024. "Profitability landscapes for competitive photovoltaic self-consumption," Energy Policy, Elsevier, vol. 188(C).
    5. Wolsink, Maarten, 2020. "Distributed energy systems as common goods: Socio-political acceptance of renewables in intelligent microgrids," Renewable and Sustainable Energy Reviews, Elsevier, vol. 127(C).
    6. Park, Sung-Won & Zhang, Zhong & Li, Furong & Son, Sung-Yong, 2021. "Peer-to-peer trading-based efficient flexibility securing mechanism to support distribution system stability," Applied Energy, Elsevier, vol. 285(C).
    7. Azim, M. Imran & Tushar, Wayes & Saha, Tapan K., 2021. "Cooperative negawatt P2P energy trading for low-voltage distribution networks," Applied Energy, Elsevier, vol. 299(C).
    8. Ma, Li & Wang, Lingfeng & Liu, Zhaoxi, 2021. "Multi-level trading community formation and hybrid trading network construction in local energy market," Applied Energy, Elsevier, vol. 285(C).
    9. Maarten Wolsink, 2020. "Framing in Renewable Energy Policies: A Glossary," Energies, MDPI, vol. 13(11), pages 1-31, June.
    10. Hu, Qian & Zhu, Ziqing & Bu, Siqi & Wing Chan, Ka & Li, Fangxing, 2021. "A multi-market nanogrid P2P energy and ancillary service trading paradigm: Mechanisms and implementations," Applied Energy, Elsevier, vol. 293(C).
    11. Barbara Antonioli Mantegazzini & C?dric Clastres & Laura Wangen, 2022. "Energy communities in Europe: An overview of issues and regulatory and economic solutions," ECONOMICS AND POLICY OF ENERGY AND THE ENVIRONMENT, FrancoAngeli Editore, vol. 2022(2), pages 5-23.
    12. Gallego-Castillo, Cristobal & Heleno, Miguel & Victoria, Marta, 2021. "Self-consumption for energy communities in Spain: A regional analysis under the new legal framework," Energy Policy, Elsevier, vol. 150(C).
    13. Soto, Esteban A. & Bosman, Lisa B. & Wollega, Ebisa & Leon-Salas, Walter D., 2021. "Peer-to-peer energy trading: A review of the literature," Applied Energy, Elsevier, vol. 283(C).
    14. Kerscher, Selina & Koirala, Arpan & Arboleya, Pablo, 2024. "Grid-optimal energy community planning from a systems perspective," Renewable and Sustainable Energy Reviews, Elsevier, vol. 199(C).
    15. Claudia Gunther & Wolf-Peter Schill & Alexander Zerrahn, 2019. "Prosumage of solar electricity: tariff design, capacity investments, and power system effects," Papers 1907.09855, arXiv.org.
    16. Esmat, Ayman & de Vos, Martijn & Ghiassi-Farrokhfal, Yashar & Palensky, Peter & Epema, Dick, 2021. "A novel decentralized platform for peer-to-peer energy trading market with blockchain technology," Applied Energy, Elsevier, vol. 282(PA).
    17. Capper, Timothy & Gorbatcheva, Anna & Mustafa, Mustafa A. & Bahloul, Mohamed & Schwidtal, Jan Marc & Chitchyan, Ruzanna & Andoni, Merlinda & Robu, Valentin & Montakhabi, Mehdi & Scott, Ian J. & Franci, 2022. "Peer-to-peer, community self-consumption, and transactive energy: A systematic literature review of local energy market models," Renewable and Sustainable Energy Reviews, Elsevier, vol. 162(C).
    18. Günther, Claudia & Schill, Wolf-Peter & Zerrahn, Alexander, 2021. "Prosumage of solar electricity: Tariff design, capacity investments, and power sector effects," Energy Policy, Elsevier, vol. 152(C).
    19. Siripha Junlakarn & Phimsupha Kokchang & Kulyos Audomvongseree, 2022. "Drivers and Challenges of Peer-to-Peer Energy Trading Development in Thailand," Energies, MDPI, vol. 15(3), pages 1-25, February.
    20. Filipe Bandeiras & Álvaro Gomes & Mário Gomes & Paulo Coelho, 2023. "Exploring Energy Trading Markets in Smart Grid and Microgrid Systems and Their Implications for Sustainability in Smart Cities," Energies, MDPI, vol. 16(2), pages 1-41, January.

    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:gam:jeners:v:14:y:2021:i:4:p:1114-:d:502502. 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: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    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.