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| 1 |
ID:
098642
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| Publication |
2010.
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| Summary/Abstract |
A more sustainable energy system will alter the current patterns of electricity demand and generation. This means technical, commercial and regulatory change for electricity network systems such as distribution networks. This paper traces the links in Great Britain between changes in energy policy since privatisation, changes in the objectives of the electricity regulator and changes in the objectives of the distribution networks and their owners, the distribution network operators (DNOs). The paper identifies tensions in regulatory policy and suggests reforms to the regulatory framework to support a lower-carbon future.
DNOs are licensed regional infrastructure providers. In addition to their network services, the network companies can potentially deliver public policy objectives to facilitate heat infrastructure, energy-efficiency and distributed renewables. The paper identifies the potential benefits of a novel approach to facilitating renewable energy feed-in tariffs for electricity and heat, using DNOs.
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| 2 |
ID:
150066
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| Summary/Abstract |
Classical deterministic models applied to investment valuation in distribution networks may not be adequate for a range of real-world decision-making scenarios as they effectively ignore the uncertainty found in the most important variables driving network planning (e.g., load growth). As greater uncertainty is expected from growing distributed energy resources in distribution networks, there is an increasing risk of investing in too much or too little network capacity and hence causing the stranding and inefficient use of network assets; these costs are then passed on to the end-user. An alternative emerging solution in the context of smart grid development is to release untapped network capacity through Demand-Side Response (DSR). However, to date there is no approach able to quantify the value of ‘smart’ DSR solutions against ‘conventional’ asset-heavy investments. On these premises, this paper presents a general real options framework and a novel probabilistic tool for the economic assessment of DSR for smart distribution network planning under uncertainty, which allows the modeling and comparison of multiple investment strategies, including DSR and capacity reinforcements, based on different cost and risk metrics.
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| 3 |
ID:
088988
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| Publication |
2009.
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| Summary/Abstract |
Shifting domestic load to off-peak time periods could potentially reduce electrical distribution losses and associated carbon emissions. This paper provides the first quantitative estimate of the possible reduction in losses, for a situation where domestic energy demand is shifted in time but not reduced. At a likely 0.02% of energy distributed by the network, the reduction is small relative to overall losses and to their variability, giving little rationale for distribution network operators in Great Britain to encourage such load-shifting for that reason. The paper also considers the limited regulatory incentives for the reduction, and the fragmentation of costs and benefits across different parties. The societal value is considerably higher than the current regulatory incentive, but nonetheless may still not warrant the cost of action. Reducing rather than shifting load is likely to give greater environmental benefits.
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