The prosumers and the grid

Axel Gautier (), Julien Jacqmin and Jean-Christophe Poudou ()
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Jean-Christophe Poudou: MRE - Montpellier Recherche en Economie - UM - Université de Montpellier, Labex Entreprendre - UM - Université de Montpellier

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Abstract: Prosumers are households that are both producers and consumers of electricity. A prosumer has a grid-connected decentralized production unit and makes two types of exchanges with the grid: energy imports when the local production is insufficient to match the local consumption and energy exports when local production exceeds it. There exists two systems to measure the exchanges: a net metering system that uses a single meter to measure the balance between exports and imports and a net purchasing system that uses two meters to measure separately power exports and imports. Both systems are currently used for residential consumption.We build a model to compare the two metering systems. Under net metering, the price of exports paid to prosumers is implicitly set at the price of the electricity that they import. We show that net metering leads to (1) too many prosumers, (2) a decrease in the bills of prosumers, compensated via a higher bill for traditional consumers, and (3) a lack of incentives to synchronize local production and consumption.

Keywords: Storage; Grid tariff; Solar panel; Grid regulation; Decentralized production unit (search for similar items in EconPapers)
Date: 2018-02
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Citations: View citations in EconPapers (44)

Published in Journal of Regulatory Economics, 2018, 53 (1), pp.100 - 126. ⟨10.1007/s11149-018-9350-5⟩

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Related works:
Journal Article: The prosumers and the grid (2018)
Working Paper: The prosumers and the grid (2018)
Working Paper: The Prosumers and the Grid (2017)
Working Paper: The prosumers and the grid (2017)
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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-01811127

DOI: 10.1007/s11149-018-9350-5

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