Distributed Generation Storage, Demand Response, and Energy Efficiency as Alternatives to Grid Capacity Enhancement

Rahmatallah Poudineh and Tooraj Jamasb

Cambridge Working Papers in Economics from Faculty of Economics, University of Cambridge

Abstract: The need for investment in capital intensive electricity networks is on the rise in many countries. A major advantage of distributed resources is their potential for deferring investments in distribution network capacity. However, utilizing the full benefits of these resources requires addressing several technical, economics and regulatory challenges. A significant barrier pertains to the lack of an efficient market mechanism that enables this concept and also is consistent with business model of distribution companies under an unbundled power sector paradigm. This paper proposes a market-oriented approach termed as "contract for deferral scheme" (CDS). The scheme outlines how an economically efficient portfolio of distributed generation, storage, demand response and energy efficiency can be integrated as network resources to reduce the need for grid capacity and defer demand driven network investments.

Keywords: Distributed generation; storage; demand response; network regulation; business model (search for similar items in EconPapers)
JEL-codes: L43 L51 L52 L94 (search for similar items in EconPapers)
Date: 2013-07-12
New Economics Papers: this item is included in nep-ene and nep-reg
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Citations: View citations in EconPapers (2)

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Related works:
Journal Article: Distributed generation, storage, demand response and energy efficiency as alternatives to grid capacity enhancement (2014)
Working Paper: Distributed Generation, Storage, Demand Response, and Energy Efficiency as Alternatives to Grid Capacity Enhancement (2013)
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Persistent link: https://EconPapers.repec.org/RePEc:cam:camdae:1356

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