Challenges in energy policies for the economic integration of prosumers in electric energy systems: A critical survey with a focus on Ontario (Canada)

Elizaveta Kuznetsova and Miguel F. Anjos

Energy Policy, 2020, vol. 142, issue C

Abstract: The accessibility and reducing cost of distributed renewable energy sources are stimulating the emergence of small-scale residential prosumers who can produce and consume electricity. This may lead to various scenarios. Such prosumers may increase the uncertainty of consumption behavior, reduce consumption from the grid, and eventually disconnect from the grid. However, they may remain connected, and their energy potential can provide flexibility for the overall system. Current policy in some jurisdictions promotes disconnection through tax increases, grid charges, and other non-commodity costs. In particular, in Ontario (Canada) only 8.7% of the typical electricity bill covers the cost of energy and power; the remainder subsidizes governmental energy-procurement contracts, compensates the grid, pays for environmental initiatives, and covers other taxes. The situation is aggravated by a lack of a global vision for the energy system and of coordinated actions to achieve this vision. We support the preferred scenario in which prosumers remain connected to the grid. As an alternative to Ontario's current attempts to artificially slow the increase in electricity prices, we present an extended critical survey of energy policies to motivate a thoughtful reconsideration of current schemes for the economic integration of prosumers in the energy system.

Keywords: Energy system; Small-scale prosumer; Renewable energy source; Energy policy; Electricity bill; Energy and power charges; Grid fees; Feed-in-tariff (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0301421520301828
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:enepol:v:142:y:2020:i:c:s0301421520301828

DOI: 10.1016/j.enpol.2020.111429

Access Statistics for this article

Energy Policy is currently edited by N. France

More articles in Energy Policy from Elsevier
Bibliographic data for series maintained by Catherine Liu ().