Treatment of Solar Generation in Electric Utility Resource Planning

Sterling, John; McLaren, Joyce; Taylor, Mike; Cory, Karlynn

doi:10.2172/1107472

Cited by 15 publications

(24 citation statements)

References 17 publications

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“…The most dominant of all these policies is the renewable portfolio standards (RPS) whose policies require electric utilities to generate or purchase renewable energy that is equal to a given percentage of their retail electricity sales or a set minimum quantity within a specified time-frame. «Demand-related policies usually include energy efficiency mandates, utility energy efficiency programs, demand response/shifting and technologies such as smart meters» (Sterling et al, 2013, p.7) [23]. Utility firms in the USA dominate the investments in energy supply chains, and it was noted that as of 2015, all the renewable energy generated within the country came from utility scale facilities (Bolinger et al, 2015) [24].…”

Section: Consumer Protectionmentioning

confidence: 99%

Economics of electricity pricing and consumer protection

Strielkowski¹,

Bilan²

2017

EA-XXI

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Consumer protection and electricity pricing issues that emerge when consumers generate their own electric power by installing solar photovoltaic (PV) panels (known as solar distributed generation, or DG) nowadays are in the centre of interest of public administration and citizens as far as it concerns energy supplies of households and new inter-relations which occur as the result of technological advance. Despite the fact that the output of a solar panel cannot be precisely predicted, the marginal cost of generating electricity from the renewable energy sources is nearly zero. This made renewable sources with the inclusion of solar panels the first choice for utility firm in fulfilling its customer's energy demand. We look into the economics of electricity pricing and issue of consumer protection associated with the distributed generation in the developed economies by the example of the USA. Our results might help the stakeholders and policy-makers as well as energy companies to obtain a deeper insight on this problematique. Given that the United States are dangerously affected by climate change, the use of solar renewable energy would be of great benefit in controlling the environmental hazards caused by the use of non-renewable energy on the environment. The government and other socially influential stakeholders must initiate and further participate in the public awareness campaign concerning policies, the concept of net metering and the pricing of solar products. Keywords: Energy Economics; Electricity Pricing; Consumer Protection; Distributed Generation; Solar Photovoltaic (PV) Panels; Solar Energy; USA JEL Classification: H20; Q20; Q42 DOI: https://doi.org/10.21003/ea.V162-06 Стрєлковскі В. кандидат економічних наук, науковий співробітник, Бізнес-школа Кембридж Джадж, Університет Кембриджу, Велика Британія Білан Ю. доктор економічних наук, науковий співробітник, центр прикладних економічних досліджень, факультет менеджменту та економіки, Університет Томаша Баті в Зліні, Злін, Чеська Республіка Економіка ціноутворення на електроенергію та захист прав споживачів Анотація Специфічні проблеми захисту прав споживачів та ціноутворення на електроенергію виникають, коли споживачі починають генерувати власноруч електроенергію, використовуючи фотоелектричні панелі, також відомі як панелі розподіленого генерування енергії. Ці проблеми швидко привернули увагу владних структур і суспільства. Ми розглядаємо економіку ціноутворення на електроенергію та питання захисту прав споживачів, пов'язані з розподіленим генеруванням енергії, на прикладі розвинених економік світу, а саме, США. Уряд та інші зацікавлені сторони мають ініціювати й активно реалізовувати просвітницькі кампанії щодо концепції виробництва електроенергії з відновлювальних джерел та ціноутворення на відповідні продукти сонячної енергетики. Ключові слова: економіка енергетики; ціноутворення на електроенергію; захист прав споживачів; розподілене генерування; сонячна енергетика; США. Стрелковски В. кандидат экономических наук, научный сотрудник, Бизнес-ш...

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Section: Consumer Protectionmentioning

confidence: 99%

Economics of electricity pricing and consumer protection

Strielkowski¹,

Bilan²

2017

EA-XXI

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“…variability, resource availability) and thus need differing treatment within CEMs. More details on these characteristics are presented in recent overview work for solar [4][5] and for wind [6][7].…”

Section: ℕmentioning

confidence: 99%

“…Mathematically, RPM is a mixed-integer linear program. The version used for the present analysis borrows heavily from an earlier version [9]; including the general formulation (1)(2)(3)(4)(5)(6)(7)(8)(9)(10)(11)(12)(13)(14). RPM finds the optimal capacity expansion and dispatch solution by minimizing overall system cost, including capital costs, fixed and variable operations and maintenance (O&M) costs, fuel costs, and start-up costs for each solve year.…”

Section: Resource Planning Model Descriptionmentioning

confidence: 99%

Considering renewables in capacity expansion models: Capturing flexibility with hourly dispatch

Barrows

Mai

Hale

et al. 2015

2015 IEEE Power &Amp; Energy Society General Meeting

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The Resource Planning Model co-optimizes dispatch and capacity expansion using a simplified, chronological dispatch period representation and high-resolution resource, load and infrastructure data. The computational tractability of capacity expansion models depends on model simplifications. We demonstrate the effects of various dispatch period representations on model results using the Resource Planning Model.

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“…The present study builds upon the existing body of literature on utility resource planning practices, including other comparative analyses of utility IRPs evaluating the treatment of solar and other renewables (Wiser and Bolinger 2006, Mills and Wiser 2012a, Sterling et al 2013, energy efficiency (EE) (National Action Plan for Energy Efficiency 2007, Hopper et al 2009, Lamont and Gerhard 2013, Takahashi 2015, and environmental regulatory risk (Barbose et al 2008, Luckow et al 2015, Wilson and Biewald 2013, Wilkerson et al 2014. Beyond utility IRPs, other studies have focused on non-wires alternatives within transmission planning, partly 2 in response to planning requirements imposed by Federal Energy Regulatory Commission Order 1000 (Hempling 2013, Neme and Grevatt 2015, Stanton 2015, Watson and Colburn 2013, while recent attention has turned to the impacts of distributed energy resources (DER) on the distribution system and associated planning processes (Colman et al 2016, SolarCity 2015, Edge et al 2014, Lindl et al 2013, EQL Energy 2015, De Martini and Kristov 2015, Palmintier et al 2016.…”

Section: Introductionmentioning

confidence: 99%

Planning for a Distributed Disruption: Innovative Practices for Incorporating Distributed Solar into Utility Planning

Mill

Barbose

Seel

et al. 2016

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The rapid growth of distributed solar photovoltaics (DPV) has critical implications for U.S. utility planning processes. This report informs utility planning through a comparative analysis of roughly 30 recent utility integrated resource plans or other generation planning studies, transmission planning studies, and distribution system plans. It reveals a spectrum of approaches to incorporating DPV across nine key planning areas, and it identifies areas where even the best current practices might be enhanced. 1) Forecasting DPV deployment: Because it explicitly captures several predictive factors, customer-adoption modeling is the most comprehensive forecasting approach. It could be combined with other forecasting methods to generate a range of potential futures. 2) Ensuring robustness of decisions to uncertain DPV quantities: using a capacity-expansion model to develop least-cost plans for various scenarios accounts for changes in net load and the generation portfolio; an innovative variation of this approach combines multiple per-scenario plans with trigger events, which indicate when conditions have changed sufficiently from the expected to trigger modifications in resource-acquisition strategy. 3) Characterizing DPV as a resource option: Today's most comprehensive plans account for all of DPV's monetary costs and benefits. An enhanced approach would address non-monetary and societal impacts as well. 4) Incorporating the non-dispatchability of DPV into planning: Rather than having a distinct innovative practice, innovation in this area is represented by evolving methods for capturing this important aspect of DPV. 5) Accounting for DPV's location-specific factors:The innovative propensity-to-adopt method employs several factors to predict future DPV locations. Another emerging utility innovation is locating DPV strategically to enhance its benefits. 6) Estimating DPV's impact on transmission and distribution investments: Innovative practices are being implemented to evaluate system needs, hosting capacities, and system investments needed to accommodate DPV deployment. 7) Estimating avoided losses associated with DPV: A time-differentiated marginal loss rate provides the most comprehensive estimate of avoided losses due to DPV, but no studies appear to use it. 8) Considering changes in DPV's value with higher solar penetration: Innovative methods for addressing the value changes at high solar penetrations are lacking among the studies we evaluate. 9) Integrating DPV in planning across generation, transmission, and distribution: A few states and regions have started to develop more comprehensive processes that link planning forums, but there are still many issues to address.

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Treatment of Solar Generation in Electric Utility Resource Planning

Cited by 15 publications

References 17 publications

Economics of electricity pricing and consumer protection

Economics of electricity pricing and consumer protection

Considering renewables in capacity expansion models: Capturing flexibility with hourly dispatch

Planning for a Distributed Disruption: Innovative Practices for Incorporating Distributed Solar into Utility Planning

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