Smart grids and renewable electricity generation by households

Prudence Dato, Tunç Durmaz and Aude Pommeret ()

Energy Economics, 2020, vol. 86, issue C

Abstract: This paper analyzes investments in solar panels and energy storage at a household (HH) level and studies the consequences of demand-side management for a HH by accounting for three levels of equipment in smart grids. The first level refers to the possibility of feeding electricity to the grid, which can be achieved relatively simply by net metering. The second level concerns the installation of smart meters. The third level relates to energy storage. Additionally, we look at the welfare impact of a policy imposing the installation of smart meters and the implications of curtailment measures to avoid congestion. Our analysis conveys core messages for the policymakers by showing that smart meter deployment can be welfare worsening and lead to higher grid electricity purchase depending on the tariffs. In turn, greenhouse gas emissions can be higher if fossil fuels hold a significant share in grid electricity production. This calls for regulation of tariff rates.

Keywords: Renewable energy; Intermittency; Distributed generation; Smart solutions; Energy storage; Demand response; Regulation (search for similar items in EconPapers)
JEL-codes: D24 D61 D81 Q41 Q42 (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (13)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:eneeco:v:86:y:2020:i:c:s0140988319303007

DOI: 10.1016/j.eneco.2019.104511

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