Cross subsidies across electricity network users from renewable self-consumption

Cédric Clastres (), Jacques Percebois, Olivier Rebenaque () and Boris Solier
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Cédric Clastres: GAEL - Laboratoire d'Economie Appliquée de Grenoble - Grenoble INP - Institut polytechnique de Grenoble - Grenoble Institute of Technology - INRA - Institut National de la Recherche Agronomique - CNRS - Centre National de la Recherche Scientifique - UGA [2016-2019] - Université Grenoble Alpes [2016-2019]
Jacques Percebois: UMR ART-Dev - Acteurs, Ressources et Territoires dans le Développement - Cirad - Centre de Coopération Internationale en Recherche Agronomique pour le Développement - UPVM - Université Paul-Valéry - Montpellier 3 - UPVD - Université de Perpignan Via Domitia - UM - Université de Montpellier - CNRS - Centre National de la Recherche Scientifique, CEC - Chaire Economie du Climat - Université Paris Dauphine-PSL - PSL - Université Paris Sciences et Lettres
Olivier Rebenaque: GAEL - Laboratoire d'Economie Appliquée de Grenoble - Grenoble INP - Institut polytechnique de Grenoble - Grenoble Institute of Technology - INRA - Institut National de la Recherche Agronomique - CNRS - Centre National de la Recherche Scientifique - UGA [2016-2019] - Université Grenoble Alpes [2016-2019], CEC - Chaire Economie du Climat - Université Paris Dauphine-PSL - PSL - Université Paris Sciences et Lettres

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Abstract: The deployment of renewable energies relies upon incentive policies to make their use profitable for the owner. Increasing costs of renewable support result in rising public service obligation tariffs to fund these policies. The photovoltaic prosumption could help decreasing the cost of developing renewables but induces cross-subsidies between prosumers and other users of the network that may compensate the benefits. We show that such cross-subsidies do occur but are dependent on the self-consumption rate that will remain low in the coming years. The regulator could fund these cross-subsidies by increasing the fixed part of the network tariff for prosumers only.

Keywords: cross-subsidies; network tariff; self-consumption (search for similar items in EconPapers)
Date: 2019
New Economics Papers: this item is included in nep-ene, nep-env and nep-reg
Note: View the original document on HAL open archive server: https://hal.science/hal-02146533v1
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Citations: View citations in EconPapers (15)

Published in Utilities Policy, 2019, 59, pp.100925. ⟨10.1016/j.jup.2019.100925⟩

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Journal Article: Cross subsidies across electricity network users from renewable self-consumption (2019)
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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-02146533

DOI: 10.1016/j.jup.2019.100925

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