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| 1 |
ID:
176793
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| Summary/Abstract |
The accessibility and reducing cost of distributed renewable energy sources are stimulating the emergence of small-scale residential prosumers who can produce and consume electricity. This may lead to various scenarios. Such prosumers may increase the uncertainty of consumption behavior, reduce consumption from the grid, and eventually disconnect from the grid. However, they may remain connected, and their energy potential can provide flexibility for the overall system. Current policy in some jurisdictions promotes disconnection through tax increases, grid charges, and other non-commodity costs. In particular, in Ontario (Canada) only 8.7% of the typical electricity bill covers the cost of energy and power; the remainder subsidizes governmental energy-procurement contracts, compensates the grid, pays for environmental initiatives, and covers other taxes. The situation is aggravated by a lack of a global vision for the energy system and of coordinated actions to achieve this vision. We support the preferred scenario in which prosumers remain connected to the grid. As an alternative to Ontario's current attempts to artificially slow the increase in electricity prices, we present an extended critical survey of energy policies to motivate a thoughtful reconsideration of current schemes for the economic integration of prosumers in the energy system.
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| 2 |
ID:
177320
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| Summary/Abstract |
There has recently been a rapid emergence of electricity prosumers at all levels of the grid. However, the skepticism about the feasibility and profitability of their physical disconnection remains. This paper contributes to the exploration of these issues by analyzing the impact of billing policy on the profitability of investment in prosumer schemes in Ontario (Canada). We conclude that the recent fast improvement in commercial storage technologies has made it possible for prosumers to become fully electricity self-sufficient even in locations with high electricity consumption and low availability of renewable energy sources. Among the three options of remaining a conventional consumer, switching to Net Metering or going Off-grid, Off-grid is the least attractive for investment in 2019. However, by 2030 Off-grid gains significant value, and for some locations it becomes even the first or the second most attractive option. Sensitive locations where disconnection is more profitable are characterized by a high share of fixed costs in the total electricity bill. In such locations, it is no longer attractive to remain a conventional consumer in 2030. If the annual bill increase goes beyond 4% and the decreasing trends in the cost of technologies are maintained, Off-grid will become profitable by 2030.
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