Ansarin, Mohammad, Ghiassi-Farrokhfal, Yashar ORCID: 0000-0001-6365-1001, Ketter, Wolfgang and Collins, John (2020). Cross-subsidies among residential electricity prosumers from tariff design andmetering infrastructure. Energy Policy, 145. OXFORD: ELSEVIER SCI LTD. ISSN 1873-6777

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Abstract

Distributed renewable energy sources (D-RES) are growing, transforming electricity consumers into producer-consumers (prosumers). Retail electricity tariffs require new mechanisms to fairly purchase D-RES generation from and transfer costs to prosumers. Otherwise, cross-subsidy (wealth transfers from some prosumers to others) can worsen tariff outcomes. Tariffs depend on metering infrastructure, where two choices can significantly impact cross-subsidies: (a) metering generation and consumption separately, and (b) using advanced metering infrastructure (AMI) that allows for more granular accounting of energy trade. We use high-resolution energy data from 2016 from Austin, TX, USA, to study these impacts in a high-D-RES distribution grid. We consider multiple tariffs and metering scenarios, thus separating their effects. We find that traditional tariffs using legacy metering create median annual cross-subsidy values from 38% to 100% of real costs. However, AMI can reduce these values by 2 to 3 orders of magnitude when a tariff that utilizes AMI's options is used. In contrast, metering generation separately from consumption appears to have little impact on cross-subsidies. Our results have implications for metering infrastructure choices and tariff design for grids undergoing rapid growth of D-RES generation.

Item Type: Journal Article
Creators:
CreatorsEmailORCIDORCID Put Code
Ansarin, MohammadUNSPECIFIEDUNSPECIFIEDUNSPECIFIED
Ghiassi-Farrokhfal, YasharUNSPECIFIEDorcid.org/0000-0001-6365-1001UNSPECIFIED
Ketter, WolfgangUNSPECIFIEDUNSPECIFIEDUNSPECIFIED
Collins, JohnUNSPECIFIEDUNSPECIFIEDUNSPECIFIED
URN: urn:nbn:de:hbz:38-316703
DOI: 10.1016/j.enpol.2020.111736
Journal or Publication Title: Energy Policy
Volume: 145
Date: 2020
Publisher: ELSEVIER SCI LTD
Place of Publication: OXFORD
ISSN: 1873-6777
Language: English
Faculty: Unspecified
Divisions: Unspecified
Subjects: no entry
Uncontrolled Keywords:
KeywordsLanguage
SOLAR PV; DISTRIBUTED GENERATION; WEALTH TRANSFERS; CONSUMERSMultiple languages
Economics; Energy & Fuels; Environmental Sciences; Environmental StudiesMultiple languages
URI: http://kups.ub.uni-koeln.de/id/eprint/31670

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