Cross subsidies across electricity network users from renewable self-consumption

Cédric Clastres, Jacques Percebois, Olivier Rebenaque and Boris Solier

Utilities Policy, 2019, vol. 59, issue C, -

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

Keywords: Self-consumption; Cross-subsidies; Network tariff (search for similar items in EconPapers)
JEL-codes: L51 L94 Q42 (search for similar items in EconPapers)
Date: 2019
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (15)

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Working Paper: Cross subsidies across electricity network users from renewable self-consumption (2019)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:juipol:v:59:y:2019:i:c:1

DOI: 10.1016/j.jup.2019.100925

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