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ID:
117328
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| Publication |
2013.
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| Summary/Abstract |
The quality of electricity distribution is being more and more scrutinized by regulatory authorities, with explicit reward and penalty schemes based on quality targets having been introduced in many countries. It is then of prime importance to know the cost of improving the quality for a distribution system operator. In this paper, we focus on one dimension of quality, the continuity of supply, and we estimated the cost of preventing power outages. For that, we make use of the parametric distance function approach, assuming that outages enter in the firm production set as an input, an imperfect substitute for maintenance activities and capital investment. This allows us to identify the sources of technical inefficiency and the underlying trade-off faced by operators between quality and other inputs and costs. For this purpose, we use panel data on 92 electricity distribution units operated by ERDF (Electricité de France - Réseau Distribution) in the 2003-2005 financial years. Assuming a multi-output multi-input translog technology, we estimate that the cost of preventing one interruption is equal to 10.7€ for an average DSO. Furthermore, as one would expect, marginal quality improvements tend to be more expensive as quality itself improves.
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| 2 |
ID:
166350
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| Summary/Abstract |
This paper studies the decision to synchronize household electricity consumption and production. While this behavior is beneficial for the energy system as a whole, it is not encouraged by a net-metering system. Relying on a large-scale survey conducted among households with solar PV in Wallonia, we investigate the factors impacting their decision to self-consume. As many as forty percent of our respondents declare to do so, notwithstanding the lack of incentives. The multivariate regression analysis shows that female and older residents, who tend to spend more time at home during daytime, are more likely to adapt their electricity usage by displacing their load. Prosumers with high environmental motives tend to synchronize more no matter the size of their installation. We conclude that prosumers will be further encouraged to self-consume by (1) setting monetary incentives to make consumption at the time of production more attractive, by (2) providing information to prosumers relative to their consumption/production profile and (3) by encouraging the adoption of smart devices that facilitate load shifting. These policies would lead to a higher degree of synchronization that would be beneficial for the energy system.
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