Policy and regulation for smart grids in the United Kingdom

Connor, Peter; Baker, Philip; Xenias, Dimitrios; Balta‐Ozkan, Nazmiye; Axon, Colin J.; Cipcigan, Liana

doi:10.1016/j.rser.2014.07.065

Cited by 44 publications

(29 citation statements)

References 13 publications

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“…Since January 2016, the French government has supported subsidies and approved trading electricity directly in the market, so that renewable energy companies can preserve the profitability of investment [57]. The United Kingdom introduced FITs with contracts for difference (CFD) as measures to elicit investment needed to replace old facilities and expand low-carbon energy sources [58]. The CFD is contracted between renewable energy companies and government-owned low-carbon contractors, and the companies receive the difference between the reference price and the strike price for 15 years [59].…”

Section: Discussionmentioning

confidence: 99%

A Study on the Optimal Ratio of Research and Development Investment in the Energy Sector: An Empirical Analysis in South Korea

2019

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The necessity for energy research and development (ER&D) is increasing as greenhouse gases and climate change are becoming global issues. To support sustainable economic growth through ER&D, it is necessary to examine the optimal ratio of ER&D investment to total R&D investment to maximize economic growth. However, there are no studies on the appropriate level of ER&D in total R&D investment for economic growth. This study attempts to empirically estimate the optimal ratio of ER&D investment to maximize gross domestic product (GDP) in South Korea. We utilized the Cobb-Douglas production function for our econometric model and corrected the autocorrelation problem using the Cochrane-Orcutt iterative procedure. Our results showed that both, ER&D and non-ER&D have positive correlations with GDP. The optimal ratio of ER&D is derived as 13.23%, which indicates that the current ratio of Korean ER&D should be revised upward. Further, ER&D investment in the private sector needs to be increased to achieve the optimal ratio because the current statistics in Korea describes that private companies in the energy industry invest much less in R&D than the government. Based on the results, we suggest government strategies to enhance ER&D investment in the private sector as well as the public sector.

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Section: Discussionmentioning

confidence: 99%

A Study on the Optimal Ratio of Research and Development Investment in the Energy Sector: An Empirical Analysis in South Korea

2019

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“…IoE and smart grids would allow system operators to promptly react to peaks or failures in electric energy demand and also to forecast these issues well in advance and to adjust to these situations by optimizing energy generation from, say, RES, accordingly. All these would increase energy market efficiency and profitability [36][37][38][39]. In a way, it is quite similar to the so-called "cashless economy", when the Internet is used to optimize payments and money transfers, and banks, financial institutions, as well as government regulators have an instant snapshot of all of those activities and transactions.…”

Section: Literature Reviewmentioning

confidence: 99%

Internet of Energy (IoE) and High-Renewables Electricity System Market Design

et al. 2019

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The growing importance of the Internet of Energy (IoE) brands the high-renewables electricity system a realistic scenario for the future electricity system market design. In general, the whole gist behind the IoE is developed upon a somewhat broader idea encompassing the so-called “Internet of Things” (IoT), which envisioned a plethora of household appliances, utensils, clothing, smart trackers, smart meters, and vehicles furnished with tiny devices. These devices would record all possible data from all those objects in real time and allow for a two-way exchange of information that makes it possible to optimize their use. IoT employs the Internet Protocol (IP) and the worldwide web (WWW) network for transferring information and data through various types of networks and gateways as well as sensor technologies. This paper presents an outline stemming from the implications of the high-renewables electric system that would employ the Internet of Energy (IoE). In doing so, it focuses on the implications that IoE brings into the high-renewables electricity market inhabited by smart homes, smart meters, electric vehicles, solar panels, and wind turbines, such as the peer-to-peer (P2P) energy exchange between prosumers, optimization of location of charging stations for electric vehicles (EVs), or the information and energy exchange in the smart grids. We show that such issues as compatibility, connection speed, and most notoriously, trust in IoE applications among households and consumers would play a decisive role in the transition to the high-renewables electricity systems of the 21st century. Our findings demonstrate that the decentralized approach to energy system effective control and operation that is offered by IoE is highly likely to become ubiquitous as early as 2030. Since it may be optimal that large-scale rollouts start in the early 2020s, some form of government incentives and funding (e.g. subsidies for installing wind turbines or solar panels or special feed-in-tariffs for buying renewable energy) may be needed for the energy market to make early progress in embracing more renewables and in reducing the costs of later investments. In addition, there might be some other alternative approaches aimed at facilitating this development. We show that the objective is to minimize the overall system cost, which consists of the system investment cost and the system operating cost, subject to CO2 emissions constraints and the operating constraints of generation units, network assets, and novel carbon-free technologies, which is quite cumbersome given the trend in consumption and the planned obsolescence. This can be done through increasing energy efficiency, developing demand side management strategies, and improving matching between supply and demand side, just to name a few possibilities.

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“…Our study demonstrates that the problem of incumbents' disincentives has undermined the effectiveness of the Chinese model. A growing body of literature and empirical data has suggested that innovation in regulatory frameworks can provide utilities with incentives to become distributed network operators for renewable sources (Connor et al, 2014;Mah et al, 2014). New York City, for example, has introduced earning adjustment mechanisms by providing utility incentives to achieve peak reductions, and facilitate interconnection of DE sources (Mitchell, 2016).…”

Section: Conclusion and Policy Recommendationsmentioning

confidence: 99%