International benchmarking of electricity distribution utilities

Edvardsen, Dag Fjeld; Førsund, Finn R.

doi:10.1016/s0928-7655(03)00045-9

Cited by 71 publications

(29 citation statements)

References 22 publications

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“…Mukherjee presented several DEA models for analysis of used energy efficiency in US manufacturing firms (Mukherjee 2008). DEA has been also used for benchmarking the electric utilities in Europe and northern Europe (Jamasb, Pollitt 2003;Edvardsen, Førsund 2003).…”

Section: Energy Efficiency and Dea: A Literature Reviewmentioning

confidence: 99%

Dea Based Approach to Set Energy Efficiency Target Under Pat Framework: a Case of Indian Cement Industry

Singh

Sharma²

2018

CEREM

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Abstract:Aim: Propose a Data Envelopment Analysis (DEA) based approach to set energy efficiency targets under the Perform, Achieve and Trade (PAT) framework of the Bureau of Energy Efficiency (BEE) Design / Research methods: We adopt input-oriented non-controllable DEA model with variable return to scale DEA Conclusions / findings: Due to the implication of in-house energy conversion, we estimate separate energy efficiency targets based on "purchased energy" as well as "process energy". The later accounts for energy finally used in the production process after in-house energy conversion.Originality / value of the article: The Bureau of Energy Efficiency (BEE) in India has introduced a market based energy efficiency mechanism under the Perform, Achieve and Trade (PAT) framework. Under this mechanism, energy efficiency certificates can be traded across eight identified sectors thus bringing cost effectiveness to achieve the energy efficiency targets. To implement the scheme, differentiated energy efficiency targets have been set using baseline specific energy consumption. This approach does not account for technical and operational aspects like vintage, scale, output mix and input mix. This study proposes an alternative target setting method based on Data Envelopment Analysis (DEA) which takes into account some of the above mentioned technical and operational differences across the industrial plants. A comparative assessment highlights the efficacy of DEA methodology in implementation of the PAT scheme. We estimate energy efficiency targets based on "purchased energy" as well as "process energy", i.e. that used finally in the production process.Implications of the research: BEE may adopt the suggested approach to set energy efficiency targets for subsequent cycles under the Perform, Achieve and Trade (PAT) framework.

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Section: Energy Efficiency and Dea: A Literature Reviewmentioning

confidence: 99%

Dea Based Approach to Set Energy Efficiency Target Under Pat Framework: a Case of Indian Cement Industry

Singh

Sharma²

2018

CEREM

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“…Other studies also offering insightful discussions on the use of DEA to inter-country benchmarking of electricity distribution utilities include Pardina et al (1998), Edvardsen and Førsund (2003), Jamasb and Pollitt (2003), and Estache et al (2004).…”

Section: Inter-country Studiesmentioning

confidence: 99%

“…Study DMUs Inputs Outputs Environmental Variables Edvardsen and Førsund (2003) 122 distribution utilities from Denmark, Finland, Norway, Sweden and Netherlands.…”

Section: Modelmentioning

confidence: 99%

Formative evaluation of electricity distribution utilities using data envelopment analysis

Santos

Amado

Rosado

2011

Journal of the Operational Research Society

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-The use of Data Envelopment Analysis (DEA) in the electricity distribution sector has been prolific in the number of papers published in research journals. However, while numerous studies have been documented, they have mostly been summative. Their aim has been predominantly descriptive and classificatory. This paper argues that evaluations of a formative nature are more effective than summative studies in promoting a better understanding of the structures and processes of electricity distribution utilities and, consequently, are more appropriate to contribute to performance improvement. To illustrate the use of DEA for formative evaluation, and highlight some of the difficulties of using DEA in practice, this paper compares the cost-efficiency of the Portuguese electricity distribution companies from 2002 to 2006. A dynamic analysis using Malmquist Indices is also conducted in order to evaluate the changes in productivity over this period. Our analysis shows that the application of DEA for formative purposes meets some difficulties. In particular it shows that whilst the modelling of productivity/efficiency scores using DEA is relatively straightforward, it is comparatively more difficult to develop models that are economically valid and that produce results with face validity. Based on the insights derived from this analysis the paper provides some recommendations regarding the successful application of DEA for performance improvement.

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“…According to Zhou et al [24], 38% of the studies dealing with energy and environment (E&E) issues are focused on electricity industry. Moreover, they found that, prior to 1990, the relevant literature had mainly focused on the electricity generation plants (see Färe et al [26,27]), whereas the focus was placed on the efficiency of electricity distribution utilities after 1990 (see Edvardsen et al [28]; Forsund, Kittelsen [29]). Modeling the environmental performance has widely attracted the attention of researchers, and about 25% of E&E studies that were carried out from 1990 to 2008 focused on this area (see Färe et al [30]).…”

Section: Introductionmentioning

confidence: 99%

Economic and Technical Efficiency of the Biomass Industry in China: A Network Data Envelopment Analysis Model Involving Externalities

et al. 2017

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This paper proposes the network data envelopment analysis (DEA) model accounting for negative externalities and applies it for decomposition of profit inefficiency in the biomass-agriculture circular system (Bio-AG system). A circular structure of the Bio-AG system which is different from the previously applied network structures is assumed. Since the negative externalities (i.e., pollutant emissions from the biomass industry) occur in the Bio-AG system, the property rights are taken into consideration to model the externalities-adjusted profits. Therefore, the changes in profits due to changes in the property rights (assuming no property rights, allocating property rights to agricultural sector, and allocating property rights to biomass power generation sector) are quantified. Further, the decomposition shows that the biomass power generation sector is less affected by technical inefficiency if contrasted to allocative inefficiency in terms of the profit loss. The findings suggest that the biomass power generation technology influences the profits of the biomass industry. What is more, the inefficient allocation of resources is now the key factor undermining performance of the biomass industry. Therefore, the government should adopt measures to improve the allocation of resources and prevent excessive investments or development of less efficient technologies.

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International benchmarking of electricity distribution utilities

Cited by 71 publications

References 22 publications

Dea Based Approach to Set Energy Efficiency Target Under Pat Framework: a Case of Indian Cement Industry

Dea Based Approach to Set Energy Efficiency Target Under Pat Framework: a Case of Indian Cement Industry

Formative evaluation of electricity distribution utilities using data envelopment analysis

Economic and Technical Efficiency of the Biomass Industry in China: A Network Data Envelopment Analysis Model Involving Externalities

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