Title: Squaring the sunny circle? On balancing distributive justice of power grid costs and incentives for solar prosumers
Authors : Kubli, Merla
Published in : Energy Policy
Volume(Issue) : 114
Pages : 173
Pages to: 188
Publisher / Ed. Institution : Elsevier
Issue Date: 2018
License (according to publishing contract) : Licence according to publishing contract
Type of review: Peer review (Publication)
Language : English
Subjects : Self-consumption; Death spiral; Grid tariff design; Net purchase and sale; Net metering; Grid cost recovery
Subject (DDC) : 333.7: Land, recreational areas and energy
338.927: Environmental economics and sustainable development
Abstract: Solar prosumers are about to revolutionize the power sector. Utilities are challenged in recovering the costs of distribution grids, as parts of their revenue basis decreases through self-consumption. Adjusting the grid tariff sets off a reinforcing feedback loop that increases the attractiveness of solar investments, but also leads to a distribution effect between solar prosumers and conventional consumers. The question is: How to recover distribution grid costs equitable without hampering the diffusion of solar power? Can the two criteria be fulfilled at the same time, or is do we aim for squaring a circle? To address this question, I present a System Dynamics simulation model designed to understand the interactions and assess these competing goals. The occurring distribution effect under the volumetric grid tariff with net purchase and sale appears to be rather limited. Simulation experiments reveal that grid tariff designs strongly influence investments for solar power. A capacity tariff can reduce deviations from the cost causation principle of solar prosumers and incentivizes investments in decentralized storage solutions to reduce peak demand. Nevertheless, also the capacity tariff causes a distribution effect.
Departement: School of Engineering
Organisational Unit: Institute of Sustainable Development (INE)
Publication type: Article in scientific Journal
DOI : 10.1016/j.enpol.2017.11.054
ISSN: 0301-4215
URI: https://digitalcollection.zhaw.ch/handle/11475/5221
Published as part of the ZHAW project : Verbreitung von Eigenverbrauchskonzepten unter verschiedener Netznutzungstarifen für das Versorgungsgebiet der BKW
Appears in Collections:Publikationen School of Engineering

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