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AGA (Asset Governance Assessment) for analyzing affect of subsidy on MC (Marginal Cost) in electricity distribution sector

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  • Dashti, Reza
  • Afsharnia, Saeed
  • Ghaderi, Farid

Abstract

Nowadays subsidy payments on electrical energy have to be managed and controlled to prevent any side effect particularly in developing countries. Effects of some external factors on Energy consumption and electricity distribution indices are analyzed in this paper. External factors are classified into three categories of social behavior, governance and urban planning. MC (Marginal Cost) of electricity in distribution is considered as the main index to be analyzed. Also, ANN (Artificial Neural Network) is applied to simulate effect of the mentioned factors on MC of distribution sector. Numerical investigation on the indices for a sample DISCO (Distribution Company) in Iran is made, results indicate that the more subsidies are allocated to consumers the more MC is increased. AGA (Asset Governance Assessment), which is proposed as a kind of governance decision, could improve the performance efficiency and avoid lose of activities done by DISCOs through subsidy management.

Suggested Citation

  • Dashti, Reza & Afsharnia, Saeed & Ghaderi, Farid, 2010. "AGA (Asset Governance Assessment) for analyzing affect of subsidy on MC (Marginal Cost) in electricity distribution sector," Energy, Elsevier, vol. 35(12), pages 4996-5007.
    • Handle: RePEc:eee:energy:v:35:y:2010:i:12:p:4996-5007
    DOI: 10.1016/j.energy.2010.08.022
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    1. Dashti, Reza & Yousefi, Shaghayegh & Parsa Moghaddam, Mohsen, 2013. "Comprehensive efficiency evaluation model for electrical distribution system considering social and urban factors," Energy, Elsevier, vol. 60(C), pages 53-61.
    2. Kim, Jin-Ho & Shcherbakova, Anastasia, 2011. "Common failures of demand response," Energy, Elsevier, vol. 36(2), pages 873-880.
    3. Zohreh Salimian & Marjan Kordbacheh & Mehdi Sadeghi Shahdani & Vahab Mokarizadeh, 2012. "Analyzing the Effects of the Iranian Energy Subsidy Reform Plan on Short-Run Marginal Generation Cost of Electricity Using Extended Input-Output Price Model," International Journal of Energy Economics and Policy, Econjournals, vol. 2(4), pages 250-262.
    4. Daneshzand, Farzaneh & Asali, Mehdi & Al-Sobhi, Saad A. & Diabat, Ali & Elkamel, Ali, 2022. "A simulation-based optimization scheme for phase-out of natural gas subsidies considering welfare and economic measures," Energy, Elsevier, vol. 259(C).
    5. Ghasemi, Mostafa & Dashti, Reza, 2018. "Designing a decision model to assess the reward and penalty scheme of electric distribution companies," Energy, Elsevier, vol. 147(C), pages 329-336.

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