Download or read book Impact of Time of Use TOU Retail Pricing in an Electricity Market With Intermittent Renewable Resources written by Balram Avittathur and published by . This book was released on 2014 with total page 19 pages. Available in PDF, EPUB and Kindle. Book excerpt: The share of renewable energy in the overall production of electricity has been increasing in recent years. However, there are worries that increase in share of solar and wind power could destabilize the grid owing to their being intermittent resources. We explore the impact of a Time of Use (TOU) retail pricing in a capacitated and deregulated electricity market that is supplied from a finite mix of intermittent renewable and steady non-renewable resources. Our modelling attempts to address a research void by considering both demand (retail) and supply (renewable energy) as variable. An efficient feed-in-tariff (FIT) as identified in literature, where the FIT is linked to the wholesale price, is considered for energy procured from renewable sources. The FIT so considered ensures that that demand is met first by electricity from renewable sources, which is in line with sustainable energy arguments. Through a set of experiments the TOU retail pricing is compared with fixed retail pricing. Our models and the numerical experiments reinforce the existing literature that increasing share of renewable energy reduces energy prices under both pricing schemes. Our experiments indicate that with increasing share of renewable energy, and demand and supply uncertainties, TOU retail pricing results in higher meeting of demand, higher expected revenues for the energy firms and higher utilization of non-renewable supply. Our experiments also indicate that fall in prices that occurs as a consequence of increasing share of renewable energy is lesser in TOU pricing compared to fixed pricing, which makes it less disadvantageous to existing non-renewable energy suppliers and potential investments in non-renewable energy. Through these results and arguments we conclude that TOU retail pricing is superior to fixed retail pricing in the context of increasing share of renewable energy, and uncertainties in demand and supply.

Download or read book Handbook of Clean Energy Systems 6 Volume Set written by Jinyue Yan and published by John Wiley & Sons. This book was released on 2015-06-22 with total page 4038 pages. Available in PDF, EPUB and Kindle. Book excerpt: The Handbook of Clean Energy Systems brings together an international team of experts to present a comprehensive overview of the latest research, developments and practical applications throughout all areas of clean energy systems. Consolidating information which is currently scattered across a wide variety of literature sources, the handbook covers a broad range of topics in this interdisciplinary research field including both fossil and renewable energy systems. The development of intelligent energy systems for efficient energy processes and mitigation technologies for the reduction of environmental pollutants is explored in depth, and environmental, social and economic impacts are also addressed. Topics covered include: Volume 1 - Renewable Energy: Biomass resources and biofuel production; Bioenergy Utilization; Solar Energy; Wind Energy; Geothermal Energy; Tidal Energy. Volume 2 - Clean Energy Conversion Technologies: Steam/Vapor Power Generation; Gas Turbines Power Generation; Reciprocating Engines; Fuel Cells; Cogeneration and Polygeneration. Volume 3 - Mitigation Technologies: Carbon Capture; Negative Emissions System; Carbon Transportation; Carbon Storage; Emission Mitigation Technologies; Efficiency Improvements and Waste Management; Waste to Energy. Volume 4 - Intelligent Energy Systems: Future Electricity Markets; Diagnostic and Control of Energy Systems; New Electric Transmission Systems; Smart Grid and Modern Electrical Systems; Energy Efficiency of Municipal Energy Systems; Energy Efficiency of Industrial Energy Systems; Consumer Behaviors; Load Control and Management; Electric Car and Hybrid Car; Energy Efficiency Improvement. Volume 5 - Energy Storage: Thermal Energy Storage; Chemical Storage; Mechanical Storage; Electrochemical Storage; Integrated Storage Systems. Volume 6 - Sustainability of Energy Systems: Sustainability Indicators, Evaluation Criteria, and Reporting; Regulation and Policy; Finance and Investment; Emission Trading; Modeling and Analysis of Energy Systems; Energy vs. Development; Low Carbon Economy; Energy Efficiencies and Emission Reduction. Key features: Comprising over 3,500 pages in 6 volumes, HCES presents a comprehensive overview of the latest research, developments and practical applications throughout all areas of clean energy systems, consolidating a wealth of information which is currently scattered across a wide variety of literature sources. In addition to renewable energy systems, HCES also covers processes for the efficient and clean conversion of traditional fuels such as coal, oil and gas, energy storage systems, mitigation technologies for the reduction of environmental pollutants, and the development of intelligent energy systems. Environmental, social and economic impacts of energy systems are also addressed in depth. Published in full colour throughout. Fully indexed with cross referencing within and between all six volumes. Edited by leading researchers from academia and industry who are internationally renowned and active in their respective fields. Published in print and online. The online version is a single publication (i.e. no updates), available for one-time purchase or through annual subscription.

Download or read book An Analysis of Time Based Pricing in Retail Electricity Markets written by Baris Ata and published by . This book was released on 2018 with total page 50 pages. Available in PDF, EPUB and Kindle. Book excerpt: Problem Definition: We empirically evaluate the short-term effects of time-based tariffs on the electricity demand, consumer welfare, retailers and the environment.Academic/Practical Relevance: Electricity retailers around the world have been introducing time-based pricing programs. We study the short-term impact of such tariffs empirically.Methodology: We build a structural estimation model of household electricity demand and analyze a data set from an Irish field experiment, consisting of the half-hourly electricity consumption of over three thousand households, combined with the wholesale price, system load and generation data. Using the estimates from the structural model, we conduct a counterfactual study to explore various questions of practical importance.Results: Our empirical analysis reveals that focusing on the peak-load reduction metric, one can design a flexible time-of-use (TOU) tariff that is simple and predictable yet performs as well as real-time pricing (RTP) given a fixed time horizon for evaluation. The annual electricity bills of consumers decrease only slightly when they switch from the flat rate to time-based tariffs, but there can be significant volatility in month to month bills under time-based tariffs. In contrast, the more flexible a tariff in terms of pricing, the less volatility it creates in retailer's profits throughout the year. Finally, switching from the flat rate to time-based tariffs would not change the carbon dioxide emissions from electricity generation in Ireland significantly.Managerial Implications: We find that time-based tariffs are effective in peak load reduction. However, the most appropriate time-based tariff depends on the context. If the goal is mitigating demand spikes over very short time spans, e.g. hours, then RTP is the most effective one. If the performance-relevant time horizon is longer, e.g. a month or a season, then a carefully designed TOU tariff with pre-determined rates can be just as effective as RTP. Consumers and retailers are largely unaffected by time-based tariffs which suggests that their adoption may be harder under opt-in policies, compared to opt-out policies. From an environmental perspective, our result that the carbon dioxide emissions do not increase facilitates the adoption of time-based tariffs.

Download or read book Encyclopedia of Sustainable Management written by Samuel Idowu and published by Springer Nature. This book was released on 2023-11-21 with total page 4043 pages. Available in PDF, EPUB and Kindle. Book excerpt: This encyclopedia is the most comprehensive and up-to-date source of reference for sustainability in business and management. It covers both traditional and emerging concepts and terms and is fully international in its scope. More than 700 contributions of internationally renowned experts provide a definitive access to the knowledge in the area of sustainable and responsible management. All actors in the field will find reliable and up to date definitions and explanations of the key terms and concepts of management in this reference work. The Encyclopedia of Sustainable Management represents all aspects of management and business conduct. It takes sustainability as a management concept that gives due credit to the complexity and diverging constraints in which businesses and corporations act today, and it emphasizes and focuses approaches that help ensure that today's management decisions and actions will be the basis for tomorrow's prosperity.

Download or read book The Impact of Intermittent Power Generation on the Wholesale Electricity Prices of the Mibel Iberian Market written by Paulo Pereira da Silva and published by . This book was released on 2018 with total page 34 pages. Available in PDF, EPUB and Kindle. Book excerpt: By means of regression analysis, we address the price impact of intermittent renewable energy sources (wind, solar and waves) for the Mibel Iberian Market (Portugal and Spain) during the period spanning from 2010 to 2015. Our results suggest that: i) intermittent renewable energy has a material negative effect on electricity price; ii) the merit-order effect varies depending on the technology employed: wind power appears to produce a greater impact on price vis-à-vis solar photovoltaic energy; iii) there is no evidence corroborating the idea that the impact of intermittent renewable electricity penetration is declining over time; and iv) the market coupling with France, in effect since May 2014, led to a decrease in the sensitivity of price to intermittent renewable energy production. Our results are useful for risk management purposes and to support policy-makers and utilities in defining the optimal generation mix.

Download or read book Comprehensive Energy Systems written by Ibrahim Dincer and published by Elsevier. This book was released on 2018-02-07 with total page 5543 pages. Available in PDF, EPUB and Kindle. Book excerpt: Comprehensive Energy Systems, Seven Volume Set provides a unified source of information covering the entire spectrum of energy, one of the most significant issues humanity has to face. This comprehensive book describes traditional and novel energy systems, from single generation to multi-generation, also covering theory and applications. In addition, it also presents high-level coverage on energy policies, strategies, environmental impacts and sustainable development. No other published work covers such breadth of topics in similar depth. High-level sections include Energy Fundamentals, Energy Materials, Energy Production, Energy Conversion, and Energy Management. Offers the most comprehensive resource available on the topic of energy systems Presents an authoritative resource authored and edited by leading experts in the field Consolidates information currently scattered in publications from different research fields (engineering as well as physics, chemistry, environmental sciences and economics), thus ensuring a common standard and language

Download or read book When Time is Money The Impact of Time of Use Electricity Rates on Energy Burden for Low Income Households written by Julia M. Hegarty and published by . This book was released on 2022 with total page 104 pages. Available in PDF, EPUB and Kindle. Book excerpt: As the U.S. embarks on a historic transition to clean, renewable-based energy, utilities must grapple with new systems to control demand for electricity. One method is using time-of-use (TOU) rates, which increase the price of electricity during high demand periods, and decrease the price during periods of high renewable availability. These rates can be useful in encouraging homeowners to shift energy consumption like water heating, dishwashing, and air conditioning to midday, when solar energy is available. However, there is concern that low-income families, who are less likely to have flexible work schedules or new appliances with load shifting capabilities, may face higher costs due to these programs. In this thesis, I examine energy burden across America, to see if counties where TOU rates have been implemented have higher average energy burden for low-income households. Controlling for energy efficiency characteristics and ratepayer characteristics, I find that the average energy burden is lower for low-income households in counties that offer TOU rates. This result indicates that those TOU programs that were active in the period of observation did not impose a significant burden on those most vulnerable to high energy costs.

Download or read book Essays on Intermittent Renewable Integration in Electricity Market Design written by Cody Hohl and published by . This book was released on 2022 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: This dissertation explores the impact of intermittent renewable integration in electricity market design. U.S. electricity markets adopt a two-settlement structure with day-ahead and real-time markets. Wind power integration poses a challenge for this market structure because day-ahead wind production forecasts are uncertain and significant rescheduling costs may occur in real time, increasing the need for out-of-market uplift payments. Chapters 2 and 3 investigate whether a multi-settlement structure, where participants can re-trade their forward positions in multiple intraday stages between the day-ahead and real-time markets, reduces uplift payments and system costs, relative to a two-settlement structure. Chapter 2 implements unit commitment and dispatch models that account for intertemporal constraints and are solved on a 36-node test system using historical wind forecasts provided by a Regional Transmission Organization (RTO), as well as synthetic wind forecasts reproducing the observed correlation in the historical data. The performance of market designs are compared across varying levels of wind penetration, where it is found that transitioning from the current two-settlement design to the proposed multi-settlement design may not improve efficiency in power system operations, and RTOs should not use their own forecasts to represent wind power generation for unit commitment and dispatch decisions. Chapter 3 develops laboratory experiments for the two-settlement and multi-settlement structures, where participants play the role of electricity generating companies who sell electricity into the market through a uniform price auction. Unit commitment and dispatch models are used to clear the market and compare the performance of both market designs under varying levels of wind penetration. Results show there is no significant difference in the performance of each market design due to participants not following their wind forecast signals. Chapter 4 examines resource adequacy and revenue sufficiency under two market designs and increasing levels of wind penetration. A capacity market structure provides an incentive for electricity suppliers to invest in new capacity through payments determined in a centralized capacity auction, while an energy-only market structure provides an incentive for electricity suppliers to invest in new capacity through high energy price caps and an operating reserve demand curve (ORDC) price adder mechanism. Equilibrium and mixed integer models are formulated to compare market performance under natural gas price, wind forecast, and demand uncertainty. Results from both market structures are evaluated on a test system comprised of seven nodes, six generators, and ten transmission lines, and show that only modern natural gas generating technologies have incentive to invest in new capacity.

Download or read book The Future of Electricity Retailing and How We Get There written by Frank A. Wolak and published by Springer Nature. This book was released on 2021-09-28 with total page 174 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book covers the current trends and challenges faced by regulators, policymakers, and researchers in the field of retail electricity market design and regulation. It addresses the role that “smart” technologies are playing in reshaping how utilities and consumers interact with each other and with their generating technologies. The book covers topics including smart meter adoption, dynamic pricing, demand response, distributed and utility-scale solar, technology costs trends, and the microeconomic theory that governs our understanding of retailer and consumer incentives. Existing inefficiencies of transmission and distribution network pricing as well as the potential regulatory approaches that can be used to remedy them are discussed along with the advantages of retail competition and draw attention to the barriers that currently are preventing all of the benefits of retail competition from materializing. The book uses very recent data to provide the most up-to-date overview of retailing trends and policies in the USA, Europe, Asia, Oceania, and Latin America. The book will be useful for researchers and regulators and policymakers.

Download or read book Effect of Real time Electricity Pricing on Renewable Generators and System Emissions written by Jeremiah Peter Connolly and published by . This book was released on 2008 with total page 158 pages. Available in PDF, EPUB and Kindle. Book excerpt: Real-time retail pricing (RTP) of electricity, in which the retail price is allowed to vary with very little time delay in response to changes in the marginal cost of generation, offers expected short-run and long-run benefits at the societal level. While the effects of RTP on most market participants have been examined previously, its effects on a) renewable generator revenues and b) power sector emissions are not well understood. This thesis presents a counterfactual model of the new England wholesale power market, including within-hour consumer price response, to analyze revenues under RTP for four renewable test cases and emissions of CO2, SO2, and NOx. Assuming a moderate consumer price-response ( e = -0.3), I find that revenues for both wind and solar cases will decrease by about 3%, a smaller loss than that expected by the generation sector as a whole (~ 6%) or by peak generators ( ~ 55%). In the same scenario, RTP is expected to decrease emissions of CO2, SO2, and NOx by 2-3% in the short-run. These results are qualitatively robust across a range of elasticities and other input parameters. A discussion of the political barriers to RTP highlights interest group pressure from peak generators and the framing of gains and losses for consumers. These barriers are likely to attract significant policymaker attention in RTP discussions, but the results of my empirical analysis show the need to also consider how RTP may interfere with the ability to achieve other policy objectives, including promoting renewable energy and reducing emissions.

Download or read book Electricity Pricing in Transition written by Ahmad Faruqui and published by Springer Science & Business Media. This book was released on 2012-12-06 with total page 372 pages. Available in PDF, EPUB and Kindle. Book excerpt: Electricity Pricing In Transition is written to address the new issues facing utilities, retailers, regulators, and customers in the changing electricity market. It is organized into five sections. Section I deals with the new restructured organization that has emerged from yesterday's vertically integrated, regulated monopoly company. Section II deals with issues in competitive pricing. Section III reviews the role of demand response and product design in today's chaotic marketplace. Given the single importance of California's energy crisis and the fact that it will be studied for years to come, Section IV is devoted to studying the lessons learned from this crisis. The final section of the book deals with markets and regulations. This book will provide practitioners with guidance on how to avoid the major pitfalls in pricing electricity while the market is in transition by drawing upon the insights and lessons learned from the experience of others that are documented in this book.

Download or read book Simplified Electricity Market Models with Significant Intermittent Renewable Capacity written by Christoph Graf and published by . This book was released on 2020 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: Using hourly offer curves from the Italian day-ahead market and the real-time re-dispatch market for the period January 1, 2017 to December 31, 2018, we show how thermal generation unit owners are able to profit from differences between a simplified day-ahead market design that ignores system security constraints as well as generation unit operating constraints, and real-time system operation where these constraints must be respected. We find that thermal generation unit owners increase or decrease their day-ahead offer prices depending on the probability that their final output will be increased or decreased relative to their day-ahead schedules because of real-time operating constraints. First, we estimate generation unit-level models of the probability of each of these outcomes conditional on forecast demand and renewable production in Italy and neighboring countries. Our most conservative estimate of the impact of a change in the probability a unit owner will have its day-ahead schedule increased in the real-time re-dispatch market implies a day-ahead offer price increase of 5 EUR/MWh if this probability changes by 0.1. If the probability of a day-ahead schedule decrease rises by 0.1 the unit owner's offer price is predicted to be 6 EUR/MWh less. Over our sample period, we find that the economic re-dispatch cost averaged approximately 15% of the total cost of energy consumption valued at the day-ahead price.

Download or read book Techno economic Methods for Analyzing the Energetic and Economic Effects of Solar Storage and Demand Response written by Arkasama Bandyopadhyay and published by . This book was released on 2020 with total page 360 pages. Available in PDF, EPUB and Kindle. Book excerpt: Growing population, changing climate, urbanization, and rising economic activities have led to an overall increase in electricity demand. Maintaining the balance between supply and this increasing demand often necessitates the usage of old, inefficient, and environmentally-polluting generators as well as the construction of expensive generation, transmission, and distribution infrastructure. Demand response initiatives (e.g. time-varying electricity prices) and distributed energy resources (DERs), like solar photovoltaic panels and onsite energy storage systems, can help offset a portion of this demand while simultaneously reducing harmful emissions. DERs additionally provide a variety of value streams including peak load reduction, energy arbitrage, real time price dispatch, demand charge reduction, congestion management, voltage support, etc. The impact of price-based demand response and DERs at the electricity distribution level is assessed in this dissertation through the following three studies: (1) quantifying the reduction in 4 coincident peak (4CP) loads and Transmission Cost of Service (TCOS) obligations of electric utilities using local distributed solar and storage, (2) evaluating the peak load reduction/shift potential of time-varying electricity pricing in the residential sector, and (3) investigating the combined energetic and economic potential of DERs and time-varying electricity pricing in the residential sector. When the Electric Reliability Council of Texas (ERCOT) peaks for a single 15-minute interval during each summer month between June and September, the loads of individual Distribution Service Providers (DSPs) in the same time interval are recorded. The averages of these DSP loads, defined as 4CP loads [1], are used to calculate TCOS obligations that each DSP must pay Transmission Service Providers (TSPs) in the next calendar year as compensation for using their transmission infrastructure. First, a generalized tool is built to forecast the change of 4CP loads and corresponding TCOS obligations for electric utilities within ERCOT based on varying amounts of solar and storage capacity. The tool is illustrated by using empirical electricity demand data from the municipally-owned utility in Austin, TX (Austin Energy) and solar generation data from the PVWatts calculator developed by the National Renewable Energy Laboratory. TCOS obligations can be on the order of tens of millions of dollars. Results indicate that solar and storage capacity can substantially lower these payments. For example, a 20 MW increase in local solar capacity in 2018 would reduce Austin Energy’s payment by an estimated $180,000 for each subsequent year. By using the novel approach of incorporating coincident peak demand charge reductions at the distribution level, the economic value of local generation and storage is highlighted. Next, a convex optimization model is developed to analyze the potential for time-varying electricity rate structures to reduce and/or shift peak demand in the residential sector. In this model, a household with four major appliances minimizes electricity costs, with marginally increasing penalties for deviating from temperature set-points or operating appliances at inconvenient times. The four specific appliances included are: heating, ventilation and air-conditioning (HVAC) systems, electric water heaters (EWHs), electric vehicles (EVs), and pool pumps (PPs). The study incorporates a one-parameter thermal model of the home and the electric water heater, so that the penalties can apply to the room and water temperatures rather than the total appliance loads. Analysis is performed on a community of 100 single-family detached homes in Austin, TX. These homes each host a combination of the four end-use devices while some also have onsite solar panels. Results show that dynamic pricing effectively shifts the residential peak away from the time of overall peak load across the electricity system, but can have the adverse impact of making the residential peak higher. The energy consumption does not differ significantly across the different rate structures. Thus, it can be inferred that the time-varying rates encourage customers to concentrate their electricity demand within low-price hours to the extent possible without incurring significant inconvenience. By incorporating the novel approach of including monetary value of customer behavior in price-based demand response models, this study builds a tool to realistically quantify peak load reduction and shifts in the residential sector. Finally, the convex optimization model is extended to consider larger sets of distributed technologies that might be deployed in homes and investigate how different combinations of these technologies affect peak grid load, energy consumption from the grid, and emissions in the residential sector under time-varying pricing structures. In the model, households with varied amalgamations of distributed energy technologies minimize electricity costs, amortized capital, and operational costs over a year, with marginally increasing penalties for deviating from room temperature set-points. The four technologies considered are: solar photovoltaic (PV) panels, lithium-ion batteries, ice cold thermal energy storage (CTES), and smart thermostats. Results show that from an economic perspective, it is optimal for residential customers to install solar panels under tiered rates, time-of-use rates, and critical peak prices while it is cheapest to own a combination of solar panels and smart thermostats when real-time prices and demand charges are in effect. The capital and installation costs of both storage systems are still too high to make them economically profitable investments for typical residential customers. Additionally, solar panels are the main instruments to reduce energy purchased from the grid and carbon dioxide emissions under all pricing schemes. Adding smart thermostats can reduce these metrics to a greater extent by making the home energy-efficient. Further, while the energetic effect of the two storage systems can be favorable or detrimental depending upon the load profile of the particular household and the pricing structure, lithium-ion batteries are the main instruments to avoid high demand charges by spreading the demand in the home (and power bought from the grid) evenly to the extent possible without incurring significant customer discomfort. Thus, this study recommends that residential customers invest in solar panels and smart thermostats to minimize overall annual expenditure and make their homes environmentally efficient. Further, as an effective peak load control mechanism, electric utilities should offer significant rebates to encourage residential customer investment in storage systems in addition to subjecting them to demand charges. Electricity generation from intermittent renewable energy sources has grown rapidly worldwide. DER installation levels continue to rise with the decline in capital costs of energy storage systems and local renewable generation assets, the growth of supportive government policies, and rising concerns about climate change among the masses. Additionally, electric utilities are increasingly employing demand response initiatives to curtail and/or shift peak demand. As a whole, the body of work developed in this dissertation can be used by electric utilities to make optimal decisions about dynamic rate design and policies for increased DER adoption. It can also be used by residential electricity customers to maneuver their own energy consumption patterns and assess the economic viability of investing in DERs

Download or read book The Impact of Variable Renewables on the Distribution of Hourly Electricity Prices and Their Variability written by Kyriaki Tselika and published by . This book was released on 2022 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Spot Pricing of Electricity written by Fred C. Schweppe and published by Springer Science & Business Media. This book was released on 2013-03-07 with total page 362 pages. Available in PDF, EPUB and Kindle. Book excerpt: There is a need for fundamental changes in the ways society views electric energy. Electric energy must be treated as a commodity which can be bought, sold, and traded, taking into account its time-and space-varying values and costs. This book presents a complete framework for the establishment of such an energy marketplace. The framework is based on the use of spot prices. In general terms: o An hourly spot price (in dollars per kilowatt hour) reflects the operating and capital costs of generating, transmitting and distributing electric energy. It varies each hour and from place to place. o The spot price based energy marketplace involves a variety of utility-customer transactions (ranging from hourly varying prices to long-term, multiple-year contracts), all of which are based in a consistent manner on hourly spot prices. These transactions may include customers selling to, as well as buying from, the utility. The basic theory and practical implementation issues associated with a spot price based energy marketplace have been developed and discussed through a number of different reports, theses, and papers. Each addresses only a part of the total picture, and often with a somewhat different notation and terminology (which has evolved in parallel with our growing experience). This book was xvii xviii Preface written to serve as a single, integrated sourcebook on the theory and imple mentation of a spot price based energy marketplace.

Download or read book Potential impact of partial retail price feed in tariffs on a solar rebound effect in Germany written by Jonte Buchholz and published by GRIN Verlag. This book was released on 2022-12-22 with total page 22 pages. Available in PDF, EPUB and Kindle. Book excerpt: Seminar paper from the year 2020 in the subject Economy - Environment economics, grade: 1,3, Christian-Albrechts-University of Kiel, language: English, abstract: In order to contribute to an understanding of the impact of the so called ‘solar-rebound effect’ (SRE) as described by Oliver et al. (2019), it is the goal of this paper to formulate a hypothesis regarding the potential impact of partial electricity retail price (ERP) feed-in-tariffs (FiT) on this effect in Germany, drawing on the theoretical model developed by Oliver alii (2019) and on empirical insights regarding the SRE, observed in Phoenix (Arizona) by Qiu alii (2019) and in Sydney by Deng & Newton (2017). Therefore, the research question that I would like to answer in the following argumentation, is: Has the policy measure of the Renewable Energy Sources Act (EEG) feed-in tariff scheme an impact on the solar-rebound effect in Germany, and does the mechanism mitigate or intensify the SRE compared to solar rebound effects observed in Arizona by Qiu et al. (2019) and in Australia by Deng & Newton (2017)? In Germany, there are a variety of different legal mechanisms applied to support the installation and usage of renewable energy. The most important one being the Renewable Energy Sources Act (EEG) which is widely acknowledged and adopted as a model by other countries. The regulation led to an increase of the portion of renewable energy on total gross electricity consumption in Germany from 2009 to 2019. In 2019 renewables had a share of 43% on gross electricity consumption, of which 8.2% were generated by solar systems. Approximately 1/3 of the total amount of photovoltaic (PV) power production capacity in Germany is owned by private households, which are acting as prosumers. These numbers underscore the importance to understand effects on residential photovoltaic system usage to implement effective policies in line with climate objectives.

Download or read book Wealth Transfer from Implementing Real time Retail Electricity Pricing written by Severin Borenstein and published by . This book was released on 2005 with total page 36 pages. Available in PDF, EPUB and Kindle. Book excerpt: "Adoption of real-time electricity pricing--retail prices that vary hourly to reflect changing wholesale prices--removes existing cross-subsidies to those customers that consume disproportionately more when wholesale prices are highest. If their losses are substantial, these customers are likely to oppose RTP initiatives unless there is a supplemental program to offset their loss. Using data on a random sample of 636 industrial and commercial customers in southern California, I show that RTP adoption would result in significant transfers compared to a flat-rate tariff. When compared to the time-of-use rates (simple peak/offpeak tariffs) that these customers already face, however, the transfers drop by nearly half; even under the more extreme price volatility scenario that I examine, 90% of customers would see changes of between a 9% bill reduction and a 14% bill increase. Though customer price responsiveness reduces the loss incurred by those with high-cost demand profiles, I also demonstrate that this offsetting effect is unlikely to be large enough for most customers with costly demand patterns to completely offset their lost cross-subsidy. The analysis suggests that adoption of real-time pricing may be difficult without a supplemental program that compensates the customers who are made worse off by the change. I discuss how "two-part RTP" programs, which allow customers to purchase a baseline quantity at regulated TOU rates, can reduce the transfers associated with adoption of RTP"--National Bureau of Economic Research web site.