From vertical to horizontal unbundling: A downstream electricity reliability insurance business model

Rolando Fuentes, Jorge Blazquez () and Iqbal Adjali

Energy Policy, 2019, vol. 129, issue C, 796-804

Abstract: Distributed energy resource technologies (DERs) allow consumers to generate, trade, reduce, and shift their electricity consumption, largely bypassing traditional utilities. DERs can reduce consumer reliance on the grid, and in the most extreme scenario self-sufficient consumers could disconnect from the grid and avoid all external charges. However, since most DERs delivers energy, but not reliable capacity, it would be in the interests of most of these consumers to stay connected to the networks, in the event their system fails. Such a ‘pay as you go’ price scheme would not reflect the opportunity cost of electricity firms' sudden idle infrastructure though.

Keywords: Utilities of the future; Distributed energy resources; New business models; Market innovation; Energy services (search for similar items in EconPapers)
Date: 2019
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Citations: View citations in EconPapers (4)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:enepol:v:129:y:2019:i:c:p:796-804

DOI: 10.1016/j.enpol.2019.02.068

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