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Distribution network tariffs and distributed generation: need for an innovative methodology to face new challenges. Application to a case study

, A. Picciariello, C.R. Vergara Ramírez, J. Reneses, P. Frías, L. Söder

The electricity sector is undergoing massive changes, due to the liberalization process and the changes ocurred in the regulatory regimes in many countries. In particular, the distribution sector is facing the challenges related to the integration of an increasing amount of distributed generation (DG) in the distribution grids, which is likely to affect the planning and operation of the grids themselves and, consequently, to cause additional costs and benefits for the different network users. This paper investigates the broad range of issues arising within the rate design process due to DG integration, especially in terms of cost allocation and connected risk of cross subsidization of some customer categories by other ones. The simulations indicate, on one hand, that, when net metering is adopeted and volumetric tariffs utilized, cross subsidization of customers with self generation by the customers without it is likely to arise; on the other hand, separate volumetric tariffs to be applied to producers and consumers are proposed, in order for the network costs to be allocated on a cost-causallity basis and, in this way, neutralize such risk for cross subsidization

37th IAEE International Conference. Nueva York, EE.UU. 15-18 Junio 2014

Published: June 2014.

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