Distributed Generation and Cost Efficiency of German Electricity Distribution Network Operators
Lisa Just () and
Heike Wetzel ()
Additional contact information
Lisa Just: Energiewirtschaftliches Institut an der Universitaet zu Koeln (EWI), https://www.ewi.uni-koeln.de/en/
No 2020-9, EWI Working Papers from Energiewirtschaftliches Institut an der Universitaet zu Koeln (EWI)
In this paper, we use a comprehensive and unique data set of ﬁnancial, technical and structural characteristics of German distribution network operators from 2011 to 2017 to estimate both the transient and persistent cost eﬃciency of German distribution network operators. In addition, we analyze the eﬀect of an increasing capacity of distributed generation from renewable energy sources on the total costs of distribution network operators. Our results indicate an average cost reduction potential of approximately 12 percent in the short term and approximately 18 percent in the long term for German electricity distribution network operators. Furthermore, we ﬁnd that distributed generation from renewable energy sources is a signiﬁcant cost driver in the production process of network operators. Our study thus contributes to the ongoing debate on incentive regulation and eﬃciency benchmarking in electricity distribution industries and provides valuable insights for policymakers and regulators.
Keywords: Electricity distribution; regulation; transient cost eﬃciency; persistent cost eﬃciency; distributed generation; stochastic frontier analysis (search for similar items in EconPapers)
JEL-codes: D24 L23 L51 L94 (search for similar items in EconPapers)
Pages: 23 pages
New Economics Papers: this item is included in nep-eff, nep-ene and nep-reg
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed
Downloads: (external link)
https://www.ewi.uni-koeln.de/cms/wp-content/upload ... DNOs_Just_Wetzel.pdf Full text (application/pdf)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:ris:ewikln:2020_009
Access Statistics for this paper
More papers in EWI Working Papers from Energiewirtschaftliches Institut an der Universitaet zu Koeln (EWI) Contact information at EDIRC.
Bibliographic data for series maintained by Sabine Williams ().