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Ownership Unbundling of Electricity Distribution Networks and Distributed Generation

Author

Listed:
  • G. Brunekreeft
  • E. Ehlers

Abstract

Ownership unbundling of distribution network operators (DNO) and the commercial activities in the electricity supply industry will distort and may impede efficient investment in distributed generation (DG). DG is electricity generation connected to the distribution network and typically involves renewable energy sources and combined heat and power. Three arguments were examined in detail. First, the unbundled network operator may have poor incentives to connect new DG. Secondly, in the face of deep network impact, shallow connection charging distorts investment signals. Third, the split between network and DG exacerbates coordination and information problems leading to flawed investment.

Suggested Citation

  • G. Brunekreeft & E. Ehlers, 2006. "Ownership Unbundling of Electricity Distribution Networks and Distributed Generation," Competition and Regulation in Network Industries, Intersentia, vol. 7(1), pages 63-87, March.
    • Handle: RePEc:sen:journl:v:7:i:1:y:2006:p:63-87
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    Citations

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    Cited by:

    1. Klaus Heine, 2013. "Inside the black box: incentive regulation and incentive channeling on energy markets," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 17(1), pages 157-186, February.
    2. Marius Buchmann, 2019. "How decentralization drives a change of the institutional framework on the distribution grid level in the electricity sector – the case of local congestion markets," Bremen Energy Working Papers 0031, Bremen Energy Research.
    3. B. Willems & E. Ehlers, 2008. "Cross-Subsidies in the Electricity Sector," Competition and Regulation in Network Industries, Intersentia, vol. 9(3), pages 201-228, September.
    4. Marius Buchmann, 2016. "Information Management in Smart Grids - Who Should Govern Information Management to Balance Between Coordination and Competition on the Distribution Grid Level?," Bremen Energy Working Papers 0022, Bremen Energy Research.
    5. Dierk Bauknecht, 2011. "Incentive Regulation and Network Innovations," RSCAS Working Papers 2011/02, European University Institute.
    6. Buchmann, Marius, 2017. "Governance of data and information management in smart distribution grids: Increase efficiency by balancing coordination and competition," Utilities Policy, Elsevier, vol. 44(C), pages 63-72.

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