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The impacts of photovoltaic electricity self-consumption on value transfers between private and public stakeholders in France

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  • Roulot, Jonathan
  • Raineri, Ricardo

Abstract

Between 2016 and 2017, the French Government made significant advances in shaping the new legislative structure in order to support photovoltaic electricity self-consumption, which is a growing challenge for many countries developing renewables close to the grid parity. By analyzing all the main financial flows linked to the electric bill, the sales of electricity and the investment in photovoltaic systems, this study aims to identify the stakeholders that benefit or suffer the most from value transfers caused by photovoltaic electricity self-consumption compared to full injection. The results suggest a shortfall of revenue for the distribution system operator. An increase in the electric bill of other grid customers will undoubtedly offset this shortfall. Simultaneously, the French State would make savings for individual self-consumption projects below 100 kWp. The new policy also incentivizes the self-consumption for big consumers for whom it is more profitable and competitive. Self-consumption projects tend to be economically more attractive than projects in full injection when the photovoltaic system is not oversized for the electric demand. The policy may consequently imply risks for the equalization of electric grid charges among consumers, the sustainability of the current business strategy of utilities and the security of supply.

Suggested Citation

  • Roulot, Jonathan & Raineri, Ricardo, 2018. "The impacts of photovoltaic electricity self-consumption on value transfers between private and public stakeholders in France," Energy Policy, Elsevier, vol. 122(C), pages 459-473.
    • Handle: RePEc:eee:enepol:v:122:y:2018:i:c:p:459-473
    DOI: 10.1016/j.enpol.2018.07.035
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    References listed on IDEAS

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    1. Schittekatte, Tim & Momber, Ilan & Meeus, Leonardo, 2018. "Future-proof tariff design: Recovering sunk grid costs in a world where consumers are pushing back," Energy Economics, Elsevier, vol. 70(C), pages 484-498.
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    Cited by:

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    2. Filippo Antoniolli, Andrigo & Naspolini, Helena Flávia & de Abreu, João Frederico & Rüther, Ricardo, 2022. "The role and benefits of residential rooftop photovoltaic prosumers in Brazil," Renewable Energy, Elsevier, vol. 187(C), pages 204-222.
    3. Gautier, Axel & Hoet, Brieuc & Jacqmin, Julien & Van Driessche, Sarah, 2019. "Self-consumption choice of residential PV owners under net-metering," Energy Policy, Elsevier, vol. 128(C), pages 648-653.
    4. Barbara Antonioli Mantegazzini & C?dric Clastres & Laura Wangen, 2022. "Energy communities in Europe: An overview of issues and regulatory and economic solutions," ECONOMICS AND POLICY OF ENERGY AND THE ENVIRONMENT, FrancoAngeli Editore, vol. 2022(2), pages 5-23.
    5. Clastres, Cédric & Percebois, Jacques & Rebenaque, Olivier & Solier, Boris, 2019. "Cross subsidies across electricity network users from renewable self-consumption," Utilities Policy, Elsevier, vol. 59(C), pages 1-1.
    6. Lyu, Yuan & He, Yongxiu & Li, Shanzi & Zhou, Jinghan & Li, Bo, 2024. "Impact of grid connection cost channeling mechanisms on the development of distributed photovoltaic: The case of China," Energy Policy, Elsevier, vol. 187(C).
    7. Lyu, Yuan & He, Yongxiu & Zhou, Jinghan & Xie, Yuxin, 2023. "Prosumer standby fee design: Solving the inequity problem of China's county-wide photovoltaic project promotion," Renewable Energy, Elsevier, vol. 207(C), pages 309-320.
    8. Lyu, Yuan & He, Yongxiu & Li, Shanzi & Zhou, Jinghan & Tian, BingYing, 2024. "Channeling approach of prosumer connection costs considering regional differences in China — Evolutionary game among distributed photovoltaic entities," Energy, Elsevier, vol. 289(C).
    9. Claudia Gunther & Wolf-Peter Schill & Alexander Zerrahn, 2019. "Prosumage of solar electricity: tariff design, capacity investments, and power system effects," Papers 1907.09855, arXiv.org.
    10. Bouthaina El Barkouki & Mohamed Laamim & Abdelilah Rochd & Jae-won Chang & Aboubakr Benazzouz & Mohammed Ouassaid & Moses Kang & Hakgeun Jeong, 2023. "An Economic Dispatch for a Shared Energy Storage System Using MILP Optimization: A Case Study of a Moroccan Microgrid," Energies, MDPI, vol. 16(12), pages 1-19, June.

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