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Optimal policies to promote efficient distributed generation of electricity

David Brown () and David Sappington

Journal of Regulatory Economics, 2017, vol. 52, issue 2, 159-188

Abstract: Abstract We analyze the design of policies to promote efficient distributed generation (DG) of electricity. The optimal policy varies with the set of instruments available to the regulator and with the prevailing DG production technology. DG capacity charges often play a valuable role in inducing optimal investment in DG capacity, allowing payments for DG production to induce the optimal production of electricity using non-intermittent DG technologies. Net metering can be optimal in certain settings, but often is not optimal, especially for non-intermittent DG technologies.

Keywords: Electricity pricing; Distributed generation; Regulation (search for similar items in EconPapers)
JEL-codes: L51 L94 (search for similar items in EconPapers)
Date: 2017
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Working Paper: Optimal Policies to Promote Efficient Distributed Generation of Electricity (2016) Downloads
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