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Distribution pricing and distributed generation: different tariff structures for different metering approaches. Application to a case study

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

The electricity 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 affect networkl costs. This paper investigates the several issues arising, due to a high integration of DG, when specific metering approaches and tariff structures are adopted, especially in terms of cost allocation and connected risk of cross subsidization of some customer categories by others. The simulations indicate, on one hand, that when net metering is adopted and volumetric tariffs utilized, a 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-causality basis and, in this way, neutralize such risk for cross subsidization.


Keywords: Distribution tariffs, Distributed generation, Cross-subsidization

9th Nordic Conference on Electricity Distribution System Management and Development. Estocolmo, Suecia. 8-9 Septiembre 2014.

Published: September 2014.


    Research topics:

IIT-14-078A

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