Ansarin, Mohammad, Ghiassi-Farrokhfal, Yashar ORCID: 0000-0001-6365-1001, Ketter, Wolfgang and Collins, John (2020). The economic consequences of electricity tariff design in a renewable energy era. Appl. Energy, 275. OXFORD: ELSEVIER SCI LTD. ISSN 1872-9118

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Abstract

Renewable generation is rapidly expanding across many electricity grids, often as distributed renewable energy sources (D-RES). D-RES, such as rooftop solar panels, change a household's electric relationship with the external grid, demanding a likewise change in its economic relationship with the retailer. In particular, D-RES can impact fairness and economic efficiency considerations for electricity tariffs. We evaluate this impact on 5 tariffs, using per-minute data for 144 households in Austin, TX, USA. Our results show that traditional tariff designs allow for large wealth transfers, often to D-RES owners from non-owners, who may be paying on the median 22% more than their fair share. For economic efficiency, traditional tariffs again perform poorly. Newer time-based (time-of-use, or TOU, and real-time dynamic pricing) tariffs show few signs of cross-subsidization and better economic efficiency. Potential demand elasticity does not significantly alter conclusions for fairness, but significantly impacts those for economic efficiency. Our results clarify how different novel tariff designs in the renewable energy era achieve differing kinds and levels of fairness and efficiency; some acceptable, while others less so.

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:38-317786
DOI: 10.1016/j.apenergy.2020.115317
Journal or Publication Title: Appl. Energy
Volume: 275
Date: 2020
Publisher: ELSEVIER SCI LTD
Place of Publication: OXFORD
ISSN: 1872-9118
Language: English
Faculty: Unspecified
Divisions: Unspecified
Subjects: no entry
Uncontrolled Keywords:
KeywordsLanguage
DISTRIBUTED GENERATION; WEALTH TRANSFERS; CONSUMERS; CHARGESMultiple languages
Energy & Fuels; Engineering, ChemicalMultiple languages
URI: http://kups.ub.uni-koeln.de/id/eprint/31778

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