Assessing Socioeconomic Impacts of Integrating Distributed Energy Resources in Electricity Markets through Input-Output Models

Carmen Ramos Carvajal, Ana Salomé García-Muñiz and Blanca Moreno Cuartas
Additional contact information
Carmen Ramos Carvajal: Regional Economics Laboratory (RegioLab), Faculty of Economics and Business, Department of Applied Economic, University of Oviedo, Campus del Cristo s/n, 33006 Oviedo, Spain
Ana Salomé García-Muñiz: Regional Economics Laboratory (RegioLab), Faculty of Economics and Business, Department of Applied Economic, University of Oviedo, Campus del Cristo s/n, 33006 Oviedo, Spain
Blanca Moreno Cuartas: Regional Economics Laboratory (RegioLab), Faculty of Economics and Business, Department of Applied Economic, University of Oviedo, Campus del Cristo s/n, 33006 Oviedo, Spain

Energies, 2019, vol. 12, issue 23, 1-21

Abstract: In competitive electricity markets, the growth of electricity generated by renewable sources will reduce the market price of electricity assuming marginal cost pricing. However, small renewable distributed generation (RDG) alone cannot modify the formation of electricity prices. By aggregating small RDG units into a Virtual Power Plants (as a single unit market) they are capable of dealing at the wholesale electricity market analogous to large-scale producer following in changes in wholesale prices. This paper investigates the socioeconomic impacts of different type of RDG technologies on Spanish economic sectors and households. To this end, we applied an input-output price model to detail the activities more sensitive to changes in electricity price due to RDG technologies deployment and the associated modifications in income and total output associated with the households’ consumption variation. Detailed Spanish electricity generation disaggregation of the latest available Spanish Input-Output table, which refers to 2015, was considered. It was found that the integration of RDG units in the electricity market project a better situation for the economy and Spanish households. This paper’s scope and information can be used to benefit decision-making with respect to electricity pricing policies.

Keywords: electricity distributed generation; input-output analysis; renewable energy (search for similar items in EconPapers)
JEL-codes: Q Q0 Q4 Q40 Q41 Q42 Q43 Q47 Q48 Q49 (search for similar items in EconPapers)
Date: 2019
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://www.mdpi.com/1996-1073/12/23/4486/pdf (application/pdf)
https://www.mdpi.com/1996-1073/12/23/4486/ (text/html)

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:gam:jeners:v:12:y:2019:i:23:p:4486-:d:290671

Access Statistics for this article

Energies is currently edited by Ms. Agatha Cao

More articles in Energies from MDPI
Bibliographic data for series maintained by MDPI Indexing Manager ().