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Electricity Network Charging for Flexibility

Author

Listed:
  • Michael G. Pollitt

    (Energy Policy Research Group University of Cambridge)

Abstract

This paper discusses the principles of electricity network charging in the light of increasing amounts of distributed generation and the potential for significant increases in electric vehicles or distributed electrical energy storage. We outline cost reflective pricing, traditional public service pricing, platform market pricing and customer-focussed business model pricing. We focus on the particular problem of how to recover network fixed costs and a recent example from Australia. We conclude that there are serious issues for regulators to address, but that potential solutions at the distribution level may already exist at the transmission level.
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • Michael G. Pollitt, 2016. "Electricity Network Charging for Flexibility," Working Papers EPRG 1623, Energy Policy Research Group, Cambridge Judge Business School, University of Cambridge.
    • Handle: RePEc:enp:wpaper:eprg1623
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    File URL: https://www.jbs.cam.ac.uk/wp-content/uploads/2023/12/eprg-wp1623.pdf
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    Cited by:

    1. Crampes, Claude & Renault, Jérôme, 2019. "How many markets for wholesale electricity when supply ispartially flexible?," Energy Economics, Elsevier, vol. 81(C), pages 465-478.
    2. Newbery, David & Pollitt, Michael G. & Ritz, Robert A. & Strielkowski, Wadim, 2018. "Market design for a high-renewables European electricity system," Renewable and Sustainable Energy Reviews, Elsevier, vol. 91(C), pages 695-707.
    3. Ken Furusawa & Gert Brunekreeft & Toru Hattori, 2019. "Constrained Connection for Distributed Generation by DSOs in European Countries," Bremen Energy Working Papers 0028, Bremen Energy Research.
    4. Faerber, Laura Antonia & Balta-Ozkan, Nazmiye & Connor, Peter M., 2018. "Innovative network pricing to support the transition to a smart grid in a low-carbon economy," Energy Policy, Elsevier, vol. 116(C), pages 210-219.
    5. Langlois-Bertrand, Simon & Pineau, Pierre-Olivier, 2018. "Pricing the transition: Empirical evidence on the evolution of electricity rate structures in North America," Energy Policy, Elsevier, vol. 117(C), pages 184-197.
    6. Schittekatte, Tim & Momber, Ilan & Meeus, Leonardo, 2018. "Future-proof tariff design: Recovering sunk grid costs in a world where consumers are pushing back," Energy Economics, Elsevier, vol. 70(C), pages 484-498.

    More about this item

    Keywords

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    JEL classification:

    • L94 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Electric Utilities

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