Optimal Procurement of Distributed Energy Resources

David P. Brown and David E. M. Sappington
Authors registered in the RePEc Author Service: David E. M. Sappington and David Paul Brown

The Energy Journal, 2018, vol. Volume 39, issue Number 5

Abstract: We analyze the optimal design of policies to motivate electricity distribution companies to adopt efficient distributed energy resources (DER) and manage associated project costs. The optimal policy often entails a bias against new DER projects and implements cost sharing when DER projects are undertaken in order to foster cost containment while limiting excessive profit for the utility. Failure to adequately tailor the degree of cost sharing to the prevailing environment can raise procurement costs substantially. The distribution company may optimally be awarded more than the cost saving it achieves

JEL-codes: F0 (search for similar items in EconPapers)
Date: 2018
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Citations: View citations in EconPapers (12)

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Journal Article: Optimal Procurement of Distributed Energy Resources (2018)
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