[go: up one dir, main page]
IDEAS home Printed from https://ideas.repec.org/p/cec/wpaper/1509.html
   My bibliography  Save this paper

Impacts of decentralised power generation on distribution networks: a statistical typology of European countries

Author

Listed:
  • Darius Corbier
  • Frédéric Gonand
  • Marie Bessec
Abstract
The development of decentralised sources of power produced out of renewable energies has been triggering far-reaching consequences for DSOs over the past decade. Our paper benchmarks across more than 20 European countries the impact of the development of renewables on the physical characteristics of power distribution networks and on their investments. It builds quantitative indicators about the dynamics of installed capacity of and generation from renewable sources of electricity, electric independence, quality of electric distribution, the amount of smart grids investments, DSOs capital expenditures, the length of the distribution networks, overall costs of power networks paid by private agents, and electric losses, all in relation with the development of decentralised generation. The heterogeneity of these indicators across Europe appears to be wide notably because of physical constraints, historic legacies or policy and regulatory choices. A cluster analysis allows for deriving 5 groups of countries that display statistically homogenous characteristics. Our results may provide decision makers and regulators with a tool helping them to concentrate on the main issues specific to their countries as compared to the European median, and to look for possible solutions in the experience of other clusters which are shown to perform better for some indicators.

Suggested Citation

  • Darius Corbier & Frédéric Gonand & Marie Bessec, 2015. "Impacts of decentralised power generation on distribution networks: a statistical typology of European countries," Working Papers 1509, Chaire Economie du climat.
    • Handle: RePEc:cec:wpaper:1509
    as

    Download full text from publisher

    File URL: http://www.chaireeconomieduclimat.org/RePEc/cec/wpaper/15-10-Cahier-R-2015-09-Corbier-et-al.pdf
    File Function: First version, 2015
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. D. Giannakis & T. Jamasb & M. Pollitt, 2003. "Benchmarking and Incentive Regulation of Quality of Service: an Application to the UK Electricity Distribution Utilities," Working Papers EP35, Energy Policy Research Group, Cambridge Judge Business School, University of Cambridge.
    2. Anaya, Karim L. & Pollitt, Michael G., 2015. "Integrating distributed generation: Regulation and trends in three leading countries," Energy Policy, Elsevier, vol. 85(C), pages 475-486.
    3. Lehtonen, Markku & Nye, Sheridan, 2009. "History of electricity network control and distributed generation in the UK and Western Denmark," Energy Policy, Elsevier, vol. 37(6), pages 2338-2345, June.
    4. Jamasb, Tooraj & Orea, Luis & Pollitt, Michael, 2012. "Estimating the marginal cost of quality improvements: The case of the UK electricity distribution companies," Energy Economics, Elsevier, vol. 34(5), pages 1498-1506.
    5. Shaw, Rita & Attree, Mike & Jackson, Tim, 2010. "Developing electricity distribution networks and their regulation to support sustainable energy," Energy Policy, Elsevier, vol. 38(10), pages 5927-5937, October.
    6. Cossent, Rafael & Gómez, Tomás & Olmos, Luis, 2011. "Large-scale integration of renewable and distributed generation of electricity in Spain: Current situation and future needs," Energy Policy, Elsevier, vol. 39(12), pages 8078-8087.
    7. Jamasb, Tooraj & Pollitt, Michael, 2007. "Incentive regulation of electricity distribution networks: Lessons of experience from Britain," Energy Policy, Elsevier, vol. 35(12), pages 6163-6187, December.
    8. McDonald, Jim, 2008. "Adaptive intelligent power systems: Active distribution networks," Energy Policy, Elsevier, vol. 36(12), pages 4346-4351, December.
    9. Niesten, Eva, 2010. "Network investments and the integration of distributed generation: Regulatory recommendations for the Dutch electricity industry," Energy Policy, Elsevier, vol. 38(8), pages 4355-4362, August.
    10. Coelli, Tim J. & Gautier, Axel & Perelman, Sergio & Saplacan-Pop, Roxana, 2013. "Estimating the cost of improving quality in electricity distribution: A parametric distance function approach," Energy Policy, Elsevier, vol. 53(C), pages 287-297.
    11. de Joode, J. & Jansen, J.C. & van der Welle, A.J. & Scheepers, M.J.J., 2009. "Increasing penetration of renewable and distributed electricity generation and the need for different network regulation," Energy Policy, Elsevier, vol. 37(8), pages 2907-2915, August.
    12. Pollitt, M. & Bialek, J., 2007. "Electricity Network Investment And Regulation For A Low Carbon Future," Cambridge Working Papers in Economics 0750, Faculty of Economics, University of Cambridge.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Soares, N. & Martins, A.G. & Carvalho, A.L. & Caldeira, C. & Du, C. & Castanheira, É. & Rodrigues, E. & Oliveira, G. & Pereira, G.I. & Bastos, J. & Ferreira, J.P. & Ribeiro, L.A. & Figueiredo, N.C. & , 2018. "The challenging paradigm of interrelated energy systems towards a more sustainable future," Renewable and Sustainable Energy Reviews, Elsevier, vol. 95(C), pages 171-193.
    2. Poudineh, Rahmatallah & Jamasb, Tooraj, 2016. "Determinants of investment under incentive regulation: The case of the Norwegian electricity distribution networks," Energy Economics, Elsevier, vol. 53(C), pages 193-202.
    3. Blokhuis, Erik & Brouwers, Bart & van der Putten, Eric & Schaefer, Wim, 2011. "Peak loads and network investments in sustainable energy transitions," Energy Policy, Elsevier, vol. 39(10), pages 6220-6233, October.
    4. Carlo Cambini & Elena Fumagalli & Laura Rondi, 2016. "Incentives to quality and investment: evidence from electricity distribution in Italy," Journal of Regulatory Economics, Springer, vol. 49(1), pages 1-32, February.
    5. Mirza, Faisal Mehmood & Mushtaq, Iqra, 2022. "Estimating the marginal cost of improving services quality in electricity distribution utilities of Pakistan," Energy Policy, Elsevier, vol. 167(C).
    6. Gaspari, Michele & Lorenzoni, Arturo & Frías, Pablo & Reneses, Javier, 2017. "Integrated Energy Services for the industrial sector: an innovative model for sustainable electricity supply," Utilities Policy, Elsevier, vol. 45(C), pages 118-127.
    7. Lo Schiavo, Luca & Delfanti, Maurizio & Fumagalli, Elena & Olivieri, Valeria, 2013. "Changing the regulation for regulating the change: Innovation-driven regulatory developments for smart grids, smart metering and e-mobility in Italy," Energy Policy, Elsevier, vol. 57(C), pages 506-517.
    8. Yuan, Peng & Pu, Yuran & Liu, Chang, 2021. "Improving electricity supply reliability in China: Cost and incentive regulation," Energy, Elsevier, vol. 237(C).
    9. Costa-Campi, Maria Teresa & Daví-Arderius, Daniel & Trujillo-Baute, Elisa, 2018. "The economic impact of electricity losses," Energy Economics, Elsevier, vol. 75(C), pages 309-322.
    10. Massimo Filippini & Luis Orea, 2014. "Applications of the stochastic frontier approach in Energy Economics," Economics and Business Letters, Oviedo University Press, vol. 3(1), pages 35-42.
    11. Doumpos, Michalis & Andriosopoulos, Kostas & Galariotis, Emilios & Makridou, Georgia & Zopounidis, Constantin, 2017. "Corporate failure prediction in the European energy sector: A multicriteria approach and the effect of country characteristics," European Journal of Operational Research, Elsevier, vol. 262(1), pages 347-360.
    12. Simona Benedettini & Federico Pontoni, "undated". "Electricity distribution investments: no country for old rules? A critical overview of UK and Italian regulations," IEFE Working Papers 50, IEFE, Center for Research on Energy and Environmental Economics and Policy, Universita' Bocconi, Milano, Italy.
    13. Llorca, Manuel & Orea, Luis & Pollitt, Michael G., 2016. "Efficiency and environmental factors in the US electricity transmission industry," Energy Economics, Elsevier, vol. 55(C), pages 234-246.
    14. Buchmann, Marius, 2017. "Governance of data and information management in smart distribution grids: Increase efficiency by balancing coordination and competition," Utilities Policy, Elsevier, vol. 44(C), pages 63-72.
    15. Marius Buchmann, 2019. "How decentralization drives a change of the institutional framework on the distribution grid level in the electricity sector – the case of local congestion markets," Bremen Energy Working Papers 0031, Bremen Energy Research.
    16. Nepal, Rabindra & Jamasb, Tooraj, 2015. "Incentive regulation and utility benchmarking for electricity network security," Economic Analysis and Policy, Elsevier, vol. 48(C), pages 117-127.
    17. Axel Gautier & Julien Jacqmin & Jean-Christophe Poudou, 2018. "The prosumers and the grid," Journal of Regulatory Economics, Springer, vol. 53(1), pages 100-126, February.
    18. Veldman, Else & Gibescu, Madeleine & Slootweg, Han (J.G.) & Kling, Wil L., 2013. "Scenario-based modelling of future residential electricity demands and assessing their impact on distribution grids," Energy Policy, Elsevier, vol. 56(C), pages 233-247.
    19. Sala-Garrido, Ramon & Mocholi-Arce, Manuel & Molinos-Senante, Maria & Maziotis, Alexandros, 2021. "Assessing the marginal cost of reducing greenhouse gas emissions in the English and Welsh water and sewerage industry: A parametric approach," Utilities Policy, Elsevier, vol. 70(C).
    20. Brandstätt, Christine & Brunekreeft, Gert & Friedrichsen, Nele, 2011. "Locational signals to reduce network investments in smart distribution grids: What works and what not?," Utilities Policy, Elsevier, vol. 19(4), pages 244-254.

    More about this item

    Keywords

    Renewables; Electric utilities; Distribution networks; Cluster analysis.;
    All these keywords.

    JEL classification:

    • C38 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Classification Methdos; Cluster Analysis; Principal Components; Factor Analysis
    • L94 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Electric Utilities
    • Q42 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Alternative Energy Sources

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:cec:wpaper:1509. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chaire Economie du Climat (email available below). General contact details of provider: http://www.chaireeconomieduclimat.org .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.