Distribution of costs induced by the integration of RES-E power
Rüdiger Barth,
Christoph Weber and
Derk J. Swider
Energy Policy, 2008, vol. 36, issue 8, 3097-3105
Abstract:
This article focuses on the distribution of costs induced by the integration of electricity generation from renewable energy sources (RES-E). The treatment to distribute these costs on different market actors is crucial for its development. For this purpose, individual actors of electricity markets and several cost categories are identified. According to the defined cost structure, possible treatments to distribute the individual cost categories on different relevant actors are described. Finally, an evaluation of the cost distribution treatments based on an economic analysis is given. Economic efficiency recommends that clearly attributable (shallow) grid connection as well as (deep) grid costs are charged to the corresponding RES-E producer and that the RES-E producers are also charged the regulating power costs. However, deep grid integration costs should be updated to reflect evolving scarcities. Also regulating power costs should reflect actual scarcity and thus be symmetric and based on real-time prices, taking into account the overall system imbalance. Moreover, the time span between the closure of the spot market and actual delivery should be chosen as short as possible to enable accurate RES-E production forecasts.
Date: 2008
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (26)
Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0301-4215(08)00176-6
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:36:y:2008:i:8:p:3097-3105
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 ().