scholarly journals Electricity Tariff Design in the Context of an Ambitious Green Transition

2021 ◽  
Vol 1 (1) ◽  
Author(s):  
Nicolás Morell ◽  
José Pablo Chaves ◽  
Tomás Gómez
Keyword(s):  
Energy Transition ◽  
Residual Network ◽  
Electricity System ◽  
Fixed Charges ◽  
Trade Offs ◽  
Network Costs ◽  
Electricity Tariff ◽  
Forward Looking ◽  
Current Practices

Current tariff designs do not incentivize efficient or equitable responses by active customers adopting renewable self-generation or providing flexibility in a future fully decarbonized electricity system. This chapter revises current practices in Europe and, based on the revisited principles of efficiency and equity, proposes a first benchmark for tariff design. Forward-looking peak-coincident network charges that reflect network incremental costs and fixed charges that collect residual network costs and policy costs are recommended. No one-size-fits-all model exists, in practice. These are guidelines for regulators when dealing with the trade-offs between the tariff legacy and the new requirements imposed by this energy transition.

scholarly journals Revisiting Electricity Network Tariffs in a Context of Decarbonization, Digitalization, and Decentralization

Energies ◽  
2020 ◽  
Vol 13 (12) ◽  
pp. 3111
Author(s):  
Nicolás Morell Dameto ◽  
José Pablo Chaves-Ávila ◽  
Tomás Gómez San Román
Keyword(s):  
Economic Benefits ◽  
Electricity System ◽  
Fixed Charges ◽  
Residual Part ◽  
Network Usage ◽  
Electricity Network ◽  
Tariff Structures ◽  
Network Costs ◽  
Tariff Structure ◽  
The Cost

The electricity system is evolving due to three driven forces: decarbonization, digitalization, and decentralization (3 Ds). Should these three forces occur, electricity network tariffs must be revisited. In most countries, actual network charges incentivize inefficient network usage when volumetric or low granular (temporal and locational) charges are applied. This paper analyses the effect of 3 Ds on tariff design principles and proposes an efficient methodology for network tariff design that promotes efficient usage of the network as well as an equitable share of the costs for network users. The proposed network tariff consists of two components: a peak-coincident and a fixed charge. The peak-coincident forward-looking charge considers the cost of future network reinforcements required, calculated element-by-element, and assigned to customers during the peak utilization hours of each network element. Fixed charges allocate the residual part of the total network costs following equity principles. A simplified network model is used to compare the charges faced by consumers through three tariff structures: (1) a volumetric tariff, (2) a simplified version of the Spanish tariff, and (3) the proposed efficient tariff. This case study highlights the economic benefits of applying a highly granular and peak-coincident tariff structure.

scholarly journals Assessment of Energy Use on Urban Kathmandu from Energy Cultures Framework in Gender Perspective

2020 ◽  
Vol 15 (3) ◽  
pp. 308-316
Author(s):  
Bindu Shrestha ◽  
Sushil B Bajracharya ◽  
Sudarshan R Tiwari
Keyword(s):  
Material Culture ◽  
Energy Saving ◽  
Energy Use ◽  
Energy Transition ◽  
Gender Perspective ◽  
Trade Offs ◽  
Scant Attention ◽  
Cleaner Technology ◽  
Reduce Carbon Emission ◽  
Women's Role

The urban household has a high potential for energy saving to reduce carbon emission; however, it has been scant attention in Nepalese energy policy. Though sustainable development has set 2030 goals to achieve high impact on energy with a focus on women’ role, Nepal is still lagged for effective participating women properly in the energy sector. Urban women have a triple role with significant responsibility for household chores, and efficient cooking is one of pertinent attitudes to reduce energy in Kathmandu. Household energy is highly influenced by human behavior, energy culture, and practices, more significant role for shifting technology, that has less consideration in the policy. This paper aims to assess the energy practices identifying trade-offs of an energy transition to cleaner technology from the questionnaire survey, observation, interviews, and quantitative analysis in terms of a gender perspective. The analysis is based on energy cultures framework in gender perspective with primary attributes of cognitive norms, energy practices, and material culture to understand urban Kathmandu neighborhood. The field study showed that urban households are suffered from energy inaccessibility, inequality, and insecurity resulting in fuel stacking, socio-economic disparity, and environmental impacts. In conclusion, the energy-saving and reduced carbon emissions can be solved through prioritizing women’s role as a change of agent with active participation, incentives, two-way communication, and awareness to improve the situation.

scholarly journals Effects of a Delayed Expansion of Interconnector Capacities in a High RES-E European Electricity System

Energies ◽  
2019 ◽  
Vol 12 (16) ◽  
pp. 3098
Author(s):  
Ritter ◽  
Meyer ◽  
Koch ◽  
Haller ◽  
Bauknecht ◽  
...  
Keyword(s):  
Co2 Emissions ◽  
Electricity Market ◽  
Electricity Generation ◽  
Power Plants ◽  
Energy Transition ◽  
Market Model ◽  
Electricity Trading ◽  
Electricity System ◽  
System A ◽  
The Impact

In order to achieve a high renewable share in the electricity system, a significant expansion of cross-border exchange capacities is planned. Historically, the actual expansion of interconnector capacities has significantly lagged behind the planned expansion. This study examines the impact that such continued delays would have when compared to a strong interconnector expansion in an ambitious energy transition scenario. For this purpose, scenarios for the years 2030, 2040, and 2050 are examined using the electricity market model PowerFlex EU. The analysis reveals that both CO2 emissions and variable costs of electricity generation increase if interconnector expansion is delayed. This effect is most significant in the scenario year 2050, where lower connectivity leads roughly to a doubling of both CO2 emissions and variable costs of electricity generation. This increase results from a lower level of European electricity trading, a curtailment of electricity from a renewable energy source (RES-E), and a corresponding higher level of conventional electricity generation. Most notably, in Southern and Central Europe, less interconnection leads to higher use of natural gas power plants since less renewable electricity from Northern Europe can be integrated into the European grid.

Low Carbon Transition of Power System in China: Pathways and Policy Design Implications

2011 ◽  
Vol 361-363 ◽  
pp. 1832-1836
Author(s):  
Chang Hong Zhao ◽  
Yan Xu ◽  
Jia Hai Yuan
Keyword(s):  
Policy Design ◽  
Reference Value ◽  
Energy Transition ◽  
Energy System ◽  
Transition Management ◽  
Low Carbon ◽  
Policy Makers ◽  
Package Design ◽  
Electricity System ◽  
Low Carbon Energy

This paper studies the low carbon transition of electricity system in China. The paper describes the approach, which builds on transitions and transition management using a multi-level perspective (MLP) of niches, socio-technical regime and landscape. A MLP analysis on China’s power sector is presented to understand the current landscape, regime and niches. Five transition pathways with their possible technology options are presented. The paper goes further to propose an interactive management framework for low carbon energy system transition in China and reprehensive technology options are appraised to indicate the policy package design logic in the framework. The work in the paper will be useful in informing policy-makers and other stakeholders and may provide reference value for other countries for energy transition management.

scholarly journals Synergies and trade-offs between governance and costs in electricity system transition

Energy Policy ◽  
2015 ◽  
Vol 85 ◽  
pp. 170-181 ◽  
Author(s):  
Evelina Trutnevyte ◽  
Neil Strachan ◽  
Paul E. Dodds ◽  
Danny Pudjianto ◽  
Goran Strbac
Keyword(s):  
Electricity System ◽  
System Transition ◽  
Trade Offs

scholarly journals Why, and how will it look? Evaluating answers of energy experts concerning the German Energiewende and its implication for communication efforts

2019 ◽  
pp. 59-79
Author(s):  
Sebastian Kreuz ◽  
Eugenia Ploß
Keyword(s):  
General Public ◽  
Technological Development ◽  
Energy Transition ◽  
Economic Feasibility ◽  
Important Goal ◽  
Trade Offs ◽  
The Future ◽  
Future Challenges ◽  
Communication Challenges

The implementation of the German energy transition (Energiewende) is unclearly framed. The future of the transition depends on more than just technological development or economic feasibility. Rather, a positive attitude and an understanding by the general public are critical to its success. Therefore, communicating the complex, polarized and long-term process in an objective way is essential. We show that despite the alleged clarity of goals, German stakeholders have very diverse reasons for their support of the energy transition. One key reason mentioned is climate protection. Another important goal is the desired independence from energy imports. This diversity is at the heart of the communication challenges. We see a wide variety of goals triggering trade-offs and challenges in understanding the process. Therefore, we suggest an infographic as an approach to communicating the energy transition to the general public with a focus on goals and related future challenges of the transition. We conclude that communication tools should promote an inclusive discussion and debate regarding the goals and challenges of a process, such as the energy transition, to help answer the question: How do we want to live in the future?  Keywords: climate change, energy transition, communication, framing, media

scholarly journals Climate Change Policy and Power Sector Reform in Mexico under the Golden Age of Gas

2017 ◽  
Author(s):  
José María Valenzuela ◽  
Isabel Studer
Keyword(s):  
Climate Change ◽  
Climate Change Policy ◽  
Energy Transition ◽  
The Political ◽  
Low Carbon ◽  
Political Commitment ◽  
Change Policy ◽  
Trade Offs ◽  
Term Energy ◽  
The One

Mexico’s low-carbon technology perspectives show lack of coherence with the rising ambition in climate change commitments, for which Mexico is internationally praised. The comparison of two recent energy reforms, corresponding to two administrations, explains this lack of coherence by, on the one hand, the permanence of a strong climate institutional framework devised as a means to increase energy security and, on the other hand, the political commitment to reduce electricity tariffs through the access to low-priced gas in North America. The chapter underscores the political economy trade-offs between the need for a strong climate commitment that provides a stable long-term energy transition pathway and the political and economic short-term benefits derived from low electricity tariffs.

scholarly journals Local Markets for Flexibility Trading: Key Stages and Enablers

Energies ◽  
2018 ◽  
Vol 11 (11) ◽  
pp. 3074 ◽  
Author(s):  
Simone Minniti ◽  
Niyam Haque ◽  
Phuong Nguyen ◽  
Guus Pemen
Keyword(s):  
Electricity Markets ◽  
Distribution System ◽  
Market Access ◽  
Renewable Energy Sources ◽  
Energy Transition ◽  
Support Tool ◽  
Value Stream ◽  
Electricity System ◽  
A Value ◽  
Local Flexibility

The European energy transition is leading to a transformed electricity system, where Distributed Energy Resources (DERs) will play a substantial role. Renewable Energy Sources (RES) will challenge the key operational obligation of real-time balancing and the need for flexibility will consequently increase. The introduction of a local flexibility market (LFM) would allow the trading of flexibility supplied by both producing and consuming units at the distribution level, providing market access to DERs, a support tool for Distribution System Operators (DSOs) and a value stream for energy suppliers. Aggregators and DSOs for different reasons can enhance the valuation of flexible DERs. Several research papers have assumed aggregators fully interacting with the electricity markets and DSOs contracting services with power system actors. These interactions are still not allowed in many European countries. This article aims to analyze the European regulation to identify the most important enablers and pave the way towards the full exploitation of DER flexibility, culminating in the establishment of an LFM. Therefore, three main stages, emerging from the progressive withdrawal of the current regulatory and market barriers, are identified: (1) enabling the aggregator’s trading, (2) evolution of the DSO’s role, and (3) key-design challenges of an LFM.

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