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Impacts of decentralised power generation on distribution networks: a statistical typology of European countries

Listed author(s):
  • Darius Corbier
  • Frédéric Gonand
  • Marie Bessec

The development of decentralised sources of power produced out of renewable energies has been triggering far-reaching consequences for DSOs over the past decade. Our paper benchmarks across more than 20 European countries the impact of the development of renewables on the physical characteristics of power distribution networks and on their investments. It builds quantitative indicators about the dynamics of installed capacity of and generation from renewable sources of electricity, electric independence, quality of electric distribution, the amount of smart grids investments, DSOs capital expenditures, the length of the distribution networks, overall costs of power networks paid by private agents, and electric losses, all in relation with the development of decentralised generation. The heterogeneity of these indicators across Europe appears to be wide notably because of physical constraints, historic legacies or policy and regulatory choices. A cluster analysis allows for deriving 5 groups of countries that display statistically homogenous characteristics. Our results may provide decision makers and regulators with a tool helping them to concentrate on the main issues specific to their countries as compared to the European median, and to look for possible solutions in the experience of other clusters which are shown to perform better for some indicators.

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File URL: http://ns212578.ovh.net/RePEc/cec/wpaper/15-10-Cahier-R-2015-09-Corbier-et-al.pdf
File Function: First version, 2015
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Paper provided by Chaire Economie du Climat in its series Working Papers with number 1509.

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Length: 30 pages
Date of creation: 2015
Handle: RePEc:cec:wpaper:1509
Contact details of provider: Web page: http://ns212578.ovh.net

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  1. Jamasb, Tooraj & Pollitt, Michael, 2007. "Incentive regulation of electricity distribution networks: Lessons of experience from Britain," Energy Policy, Elsevier, vol. 35(12), pages 6163-6187, December.
  2. McDonald, Jim, 2008. "Adaptive intelligent power systems: Active distribution networks," Energy Policy, Elsevier, vol. 36(12), pages 4346-4351, December.
  3. de Joode, J. & Jansen, J.C. & van der Welle, A.J. & Scheepers, M.J.J., 2009. "Increasing penetration of renewable and distributed electricity generation and the need for different network regulation," Energy Policy, Elsevier, vol. 37(8), pages 2907-2915, August.
  4. Giannakis, D. & T. Jamasb & Pollitt, M.G., 2004. "Benchmarking and incentive regulation of quality of service: an application to the UK electricity distribution utilities," Cambridge Working Papers in Economics 0408, Faculty of Economics, University of Cambridge.
  5. Niesten, Eva, 2010. "Network investments and the integration of distributed generation: Regulatory recommendations for the Dutch electricity industry," Energy Policy, Elsevier, vol. 38(8), pages 4355-4362, August.
  6. Karim L. Anaya & Michael G. Pollitt, 2014. "Integrating Distributed Generation: Regulation and Trends in Three Leading Countries," Cambridge Working Papers in Economics 1449, Faculty of Economics, University of Cambridge.
  7. Pollitt, M. & Bialek, J., 2007. "Electricity Network Investment And Regulation For A Low Carbon Future," Cambridge Working Papers in Economics 0750, Faculty of Economics, University of Cambridge.
  8. Shaw, Rita & Attree, Mike & Jackson, Tim, 2010. "Developing electricity distribution networks and their regulation to support sustainable energy," Energy Policy, Elsevier, vol. 38(10), pages 5927-5937, October.
  9. Coelli, Tim J. & Gautier, Axel & Perelman, Sergio & Saplacan-Pop, Roxana, 2013. "Estimating the cost of improving quality in electricity distribution: A parametric distance function approach," Energy Policy, Elsevier, vol. 53(C), pages 287-297.
  10. Jamasb, Tooraj & Orea, Luis & Pollitt, Michael, 2012. "Estimating the marginal cost of quality improvements: The case of the UK electricity distribution companies," Energy Economics, Elsevier, vol. 34(5), pages 1498-1506.
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