Designing efficient distribution network charges in the context of active customers

Abdelmotteleb, Ibtihal; Gómez, Tomás; Ávila, José Pablo Chaves; Reneses, Javier

doi:10.1016/j.apenergy.2017.08.103

Cited by 76 publications

(63 citation statements)

References 21 publications

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“…There are some works, nonetheless, where this is addressed. In [38], the authors highlight the importance of designing efficient distribution charges in the context of increasing DER integration, claiming that the network peak is the main driver of network investment. A model is introduced in this paper in which users can react to distribution charges by deploying fix-sized DER installations in order to overcome high distribution charges.…”

Section: Modellingmentioning

confidence: 99%

Evaluating the Evolution of Distribution Networks under Different Regulatory Frameworks with Multi-Agent Modelling

et al. 2019

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In the context of increasing decentralised electricity generation, this paper evaluates the effect of different regulatory frameworks on the evolution of distribution networks. This problem is addressed by means of agent based modelling in which the interactions between the agents of a distribution network and an environment are described. The consumers and the distribution system operator are the agents, which act in an environment that is composed by a set of rules. For a given environment, we can simulate the evolution of the distribution network by computing the actions of the agents at every time step of a discrete time dynamical system. We assume the electricity consumers are rational agents that may deploy distributed energy installations. The deployment of such installations may alter the remuneration mechanism of the distribution system operator. By modelling this mechanism, we may compute the evolution of the electricity distribution tariff in response to the deployment of distributed generation.

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Section: Modellingmentioning

confidence: 99%

Evaluating the Evolution of Distribution Networks under Different Regulatory Frameworks with Multi-Agent Modelling

et al. 2019

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“…We quantified these effects, complementing the insights of other researchers on the direct effects of distribution grid tariffs, e.g. (Schittekatte et al, 2018;Abdelmotteleb et al, 2018). To this end, we developed a novel market equilibrium model which captures the wholesale market effects of distribution grid tariffs.…”

Section: Conclusion and Policy Implicationsmentioning

confidence: 99%

“…Traditional volumetric distribution grid tariffs, especially in combination with net-metering policies, have caused welfare transfers between consumers and cost recovery problems for distribution system operators (DSOs) (Eid et al, 2014). To address these challenges, researchers, regulators and DSOs have proposed other, more cost-reflective distribution tariff designs with different combinations and implementations of fixed, volumetric and peak demand-based charges (Abdelmotteleb et al, 2018;Hledik and Greenstein, 2016;Borenstein, 2016). At the same time, the European Commission proposes to harmonize transmission and distribution grid tariff designs on the European level in its Clean Energy Package (European Commission, 2016).…”

Section: Introductionmentioning

confidence: 99%

“…We develop a long-run market equilibrium model which takes into account distribution tariffs in the decision-making problems of consumers. In the academic literature studying distribution grid tariff design, wholesale markets are typically not modeled and the energy component of the retail tariff is consequently assumed fixed (Schittekatte et al, 2018;Abdelmotteleb et al, 2018). Sappington (2017, 2018) allow the electricity tariff, including both network and energy charges, to vary, but they model a vertically-integrated utility, not a wholesale market.…”

Section: Introductionmentioning

confidence: 99%

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Spillover effects of distribution grid tariffs in the internal electricity market: An argument for harmonization?

et al. 2019

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The Robert Schuman Centre for Advanced Studies, created in 1992 and currently directed by Professor Brigid Laffan, aims to develop inter-disciplinary and comparative research on the major issues facing the process of European integration, European societies and Europe's place in 21 st century global politics.The Centre is home to a large post-doctoral programme and hosts major research programmes, projects and data sets, in addition to a range of working groups and ad hoc initiatives. The research agenda is organised around a set of core themes and is continuously evolving, reflecting the changing agenda of European integration, the expanding membership of the European Union, developments in Europe's neighbourhood and the wider world.For more information: http://eui.eu/rscasThe EUI and the RSCAS are not responsible for the opinion expressed by the author(s). Florence School of RegulationThe Florence School of Regulation (FSR) is a partnership between the Robert Schuman Centre for Advanced Studies (RSCAS) at the European University Institute (EUI), the Council of the European Energy Regulators (CEER) and the Independent Regulators Group (IRG). Moreover, as part of the EUI, the FSR works closely with the European Commission.The objectives of the FSR are to promote informed discussions on key policy issues, through workshops and seminars, to provide state-of-the-art training for practitioners (from European Commission, National Regulators and private companies), to produce analytical and empirical researches about regulated sectors, to network, and to exchange documents and ideas.At present, its scope is focused on the regulation of Energy (electricity and gas markets), Communications & Media, and Transport.This series of working papers aims at disseminating the work of scholars and practitioners on current regulatory issues. For further information Florence School of Regulation AbstractIn many countries, distribution grid tariffs are being reformed to adapt to the new realities of an electricity system with distributed energy resources. In Europe, legislative proposals have been made to harmonize these reforms across country borders. Many stakeholders have argued that distribution tariffs are a local affair, while the EU institutions argued that there can be spillovers to other countries, which could justify a more harmonized approach. In this paper, we quantify these spillovers with a simplifed numerical example to give an order of magnitude. We look at different scenarios, and find that the spillovers can be both negative and positive. We also illustrate that the relative size of the countries is an important driver for the signifcance of the effects. To be able to quantify these effects, we developed a long-run market equilibrium model that captures the wholesale market effects of distribution grid tariffs. The problem is formulated as a non-cooperative game involving consumers, generating companies and distribution system operators in a stylized electricity market. Nomenclature Sets ASet of agents in the non-co...

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“…This approach can lead to several inefficiencies, such as cleared orders which result in a negative surplus and mistrustful biddings due to the risk of distorting the participants behaviour [23]. These issues are becoming particularly relevant nowadays, because demand is no longer perfectly inelastic, and consumers are moving towards a flexible and price-sensitive behaviour [24,25,26].…”

Section: Introductionmentioning

confidence: 99%

Ex-ante dynamic network tariffs for transmission cost recovery

Savelli

Paola

2020

Applied Energy

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This paper proposes a novel tariff scheme and a new optimization framework in order to address the recovery of fixed investment costs in transmission network planning, particularly against rising demand elasticity. At the moment, ex-post network tariffs are utilized in addition to congestion revenues to fully recover network costs, which often leads to over/under fixed cost recovery, thus increasing the investment risk. Furthermore, in the case of agents with elastic market curves, ex-post tariffs can cause several inefficiencies, such as mistrustful bidding to exploit ex-post schemes, imperfect information in applied costs and cleared quantities, and negative surplus for marginal generators and consumers. These problems are exacerbated by the increasing price-elasticity of demand, caused for example by the diffusion of demand response technologies. To address these issues, we design a dynamic ex-ante tariff scheme that explicitly accounts for the effect of tariffs in the longterm network planning problem and in the underlying market clearing process. Using linearization techniques and a novel reformulation of the congestion rent, the long-term network planning problem is reformulated as a single mixed-integer linear problem which returns the combined optimal values of network expansion and associated tariffs, while accounting for price-elastic agents and lumpy investments. The advantages of the proposed approach in terms of cost recovery, market equilibrium and increased social welfare are discussed qualitatively and are validated in numerical case studies. y b τ d t,m,i,k it replaces the product b τ m,i d t,k y b τ g t,m,i,p it replaces the product b τ m,i g t,p

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Designing efficient distribution network charges in the context of active customers

Cited by 76 publications

References 21 publications

Evaluating the Evolution of Distribution Networks under Different Regulatory Frameworks with Multi-Agent Modelling

Evaluating the Evolution of Distribution Networks under Different Regulatory Frameworks with Multi-Agent Modelling

Spillover effects of distribution grid tariffs in the internal electricity market: An argument for harmonization?

Ex-ante dynamic network tariffs for transmission cost recovery

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