Prosumers: Grid vs. individual storage

Carole Haritchabalet () and Sai Bravo-Melgarejo ()
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Carole Haritchabalet: TREE - Transitions Energétiques et Environnementales - UPPA - Université de Pau et des Pays de l'Adour - CNRS - Centre National de la Recherche Scientifique
Sai Bravo-Melgarejo: TECH ECO (ex-ITESE) - Institut Technico-Economie - CEA-DES (ex-DEN) - CEA-Direction des Energies (ex-Direction de l'Energie Nucléaire) - CEA - Commissariat à l'énergie atomique et aux énergies alternatives - Université Paris-Saclay

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Abstract: We present a stylized microeconomic model to analyze solar panels and storage investment decisions of a representative consumer under either grid (credit regulation) or individual (price regulation) storage. We identify the conditions under which prosumers become storers. We show that solar technology must be more competitive under credit than price regulation for consumers to invest in storage. We calibrate our model using French data from 2023 and 2030 and consider batteries and fuel-cells as potential individual storage technologies. France's current price regulation incentivizes investment in solar capacity, but not in storage. Conversely, credit regulation would immediately encourage energy storage. Looking ahead to 2030, both regulatory frameworks would incentivize energy storage. The distribution system operator prefers credit regulation, provided the regulator allows full energy recovery. Overall, energy storage enhances welfare under both regulatory frameworks.

Date: 2025-01
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Published in Energy economics, 2025, 141, ⟨10.1016/j.eneco.2024.108095⟩

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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-04848062

DOI: 10.1016/j.eneco.2024.108095

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