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Marginal Capacity Costs of Electricity Distribution and Demand for Distributed Generation

Author

Listed:
  • Chi-Keung Woo
  • Debra Lloyd-Zannetti
  • Ren Orans
  • Brian Horii
  • Grayson Heffner

Abstract

Marginal costs of electricity vary by time and location. Past researchers attributed these variations to factors related to electricity generation, transmission and distribution. Past authors, however, did not fully analyze the large variations in marginal distribution capacity costs (MDCC) by area and time. Thus, the objectives of this paper are as follows: (1) to show that large MDCC variations exist within a utility's service territory; (2) to demonstrate inter-utility variations in MDCC; and (3) to demonstrate the usefulness of these costs in determining demand for distributed generation (DG).

Suggested Citation

  • Chi-Keung Woo & Debra Lloyd-Zannetti & Ren Orans & Brian Horii & Grayson Heffner, 1995. "Marginal Capacity Costs of Electricity Distribution and Demand for Distributed Generation," The Energy Journal, International Association for Energy Economics, vol. 0(Number 2), pages 111-130.
    • Handle: RePEc:aen:journl:1995v16-02-a06
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    Citations

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    Cited by:

    1. Jamasb, T. & Neuhoff, K. & Newbery, D. & Pollitt, M., 2005. "Long-term Framework for Electricity Distribution Access Charges," Cambridge Working Papers in Economics 0551, Faculty of Economics, University of Cambridge.
    2. Woo, C.K. & Sreedharan, P. & Hargreaves, J. & Kahrl, F. & Wang, J. & Horowitz, I., 2014. "A review of electricity product differentiation," Applied Energy, Elsevier, vol. 114(C), pages 262-272.
    3. Woo, C.K. & Chen, Y. & Olson, A. & Moore, J. & Schlag, N. & Ong, A. & Ho, T., 2017. "Electricity price behavior and carbon trading: New evidence from California," Applied Energy, Elsevier, vol. 204(C), pages 531-543.
    4. Markus Ksoll, 2001. "Two stages of uniform delivered pricing and a monopolistic network in competitive electricity markets," ERSA conference papers ersa01p280, European Regional Science Association.
    5. Deepak Sharma & Robert Bartels, 1997. "Distributed Electricity Generation in Competitive Energy Markets: A Case Study in Australia," The Energy Journal, , vol. 18(1_suppl), pages 17-39, June.
    6. Greg Ball & Debra Lloyd-Zanetti & Brian Horii & Dan Birch & Robert E. Ricks & Holly Lively, 1997. "Integrated Local Transmission and Distribution Planning Using Customer Outage Costs," The Energy Journal, , vol. 18(1_suppl), pages 137-160, June.
    7. Baskette, C. & Horii, B. & Kollman, E. & Price, S., 2006. "Avoided cost estimation and post-reform funding allocation for California's energy efficiency programs," Energy, Elsevier, vol. 31(6), pages 1084-1099.
    8. Sreedharan, P. & Miller, D. & Price, S. & Woo, C.K., 2012. "Avoided cost estimation and cost-effectiveness of permanent load shifting in California," Applied Energy, Elsevier, vol. 96(C), pages 115-121.

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    JEL classification:

    • F0 - International Economics - - General

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