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Network capacity charge for sustainability and energy equity: A model-based analysis

Kaveh R. Khalilpour and Peter Lusis

Applied Energy, 2020, vol. 266, issue C, No S0306261920303597

Abstract: It is long known that the afternoon peak demand accounts for over-investment in the electricity network assets. This results in a high price of delivered electricity which does not fairly differentiate between peak and non-peak users. Energy tariff is proven to be one of the best demand-side management (DSM) tools for shaping consumers’ behaviour. While electricity pricing models, such as inclining block and time-of-use tariffs, have received decent attention as successful mechanisms, there are little discussions about another efficient tariff known as a rollover network capacity charge. It is a penalty for the highest recorded power usage over the previous reading cycle (or year) which is introduced to commercial users in some jurisdictions.

Keywords: Energy-justice nexus; Energy equity; demand-side management (DSM); distributed generation and storage (DGS); Rollover network capacity charge; Demand charge (search for similar items in EconPapers)
Date: 2020
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Citations: View citations in EconPapers (4)

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DOI: 10.1016/j.apenergy.2020.114847

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