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Distribution charges for consumers and microgeneration considering load elasticity sensitivity

Author

Listed:
  • Steele Santos, Paulo E.
  • Marangon Lima, Jose W.
  • Leme, Rafael C.
  • Leite Ferreira, Tiago G.

Abstract

This paper presents an approach for calculating a tariff for electrical energy distribution systems. The methodology is similar to the standard tariff-calculation method used in Brazil. The approach combines the concepts of time-of-use tariffs and Ramsey prices. The process, initially designed for energy consumers, can be used to establish tariffs for micro-generation units. The resulting regulated distribution tariffs, for both consumer and generation units, has an hourly signal associated with long-run marginal costs. Moreover, while minimizing any loss of social benefits, the tariffs comply with the revenue reconciliation constraint. The proposed approach is applied to a real Brazilian distribution system and compared to the current procedure used by the Brazilian Electricity Regulatory Agency.

Suggested Citation

  • Steele Santos, Paulo E. & Marangon Lima, Jose W. & Leme, Rafael C. & Leite Ferreira, Tiago G., 2012. "Distribution charges for consumers and microgeneration considering load elasticity sensitivity," Energy Economics, Elsevier, vol. 34(2), pages 468-475.
    • Handle: RePEc:eee:eneeco:v:34:y:2012:i:2:p:468-475
    DOI: 10.1016/j.eneco.2011.12.003
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    References listed on IDEAS

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    2. Nahata, Babu & Izyumov, Alexei & Busygin, Vladimir & Mishura, Anna, 2007. "Application of Ramsey model in transition economy: A Russian case study," Energy Economics, Elsevier, vol. 29(1), pages 105-125, January.
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    5. Reneses, Javier & Gómez, Tomás & Rivier, Juan & Angarita, Jorge L., 2011. "Electricity tariff design for transition economies: Application to the Libyan power system," Energy Economics, Elsevier, vol. 33(1), pages 33-43, January.
    6. Rodri­guez Ortega, Mari­a Pi­a & Pérez-Arriaga, J. Ignacio & Abbad, Juan Rivier & González, Jesús Peco, 2008. "Distribution network tariffs: A closed question?," Energy Policy, Elsevier, vol. 36(5), pages 1712-1725, May.
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    Cited by:

    1. Bigerna, Simona & Bollino, Carlo Andrea, 2016. "Ramsey prices in the Italian electricity market," Energy Policy, Elsevier, vol. 88(C), pages 603-612.
    2. Atalla, Tarek & Bigerna, Simona & Bollino, Carlo Andrea & Polinori, Paolo, 2018. "An alternative assessment of global climate policies," Journal of Policy Modeling, Elsevier, vol. 40(6), pages 1272-1289.

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    More about this item

    Keywords

    Distribution pricing; Economic regulation; Microgeneration princig; Ramsey prices; Time-of-use tariff;
    All these keywords.

    JEL classification:

    • C61 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Optimization Techniques; Programming Models; Dynamic Analysis

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