IDEAS home Printed from https://ideas.repec.org/a/sae/engenv/v31y2020i1p40-59.html
   My bibliography  Save this article

Assessment of electricity distribution business model and market design alternatives: Evidence for policy design

Author

Listed:
  • Guillermo Ivan Pereira
  • Patrícia Pereira da Silva
  • Deborah Soule

Abstract

The transition toward smart electricity distribution grids is transforming the European electricity sector. This has contributed to increased attention by policy makers regarding the future role of electricity distribution system operators in a more flexible, digital, and renewables-based electricity system. A better understanding on how to support the adaptation of the electricity distribution industry can contribute to the introduction of an effective policy framework. Our research provides evidence for policy design by presenting the results of a Policy Delphi study focused on business model and market design adaptation alternatives. We highlight the importance of supporting innovation and a more proactive approach to adaptation from both distribution system operators and regulators. Our findings support the importance of electricity distribution for neutral market facilitation, contributing to market development and enabling new market players. The results obtained support policy makers working on electricity sector adaptation and can contribute to the ongoing market redesign efforts under the Energy Union.

Suggested Citation

  • Guillermo Ivan Pereira & Patrícia Pereira da Silva & Deborah Soule, 2020. "Assessment of electricity distribution business model and market design alternatives: Evidence for policy design," Energy & Environment, , vol. 31(1), pages 40-59, February.
    • Handle: RePEc:sae:engenv:v:31:y:2020:i:1:p:40-59
    DOI: 10.1177/0958305X18758248
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.1177/0958305X18758248
    Download Restriction: no
    File URL: https://libkey.io/10.1177/0958305X18758248?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Azadeh Shomali & Jonatan Pinkse, 2016. "The consequences of smart grids for the business model of electricity firms," Post-Print hal-02022695, HAL.
    2. Lund, Henrik & Andersen, Anders N. & Østergaard, Poul Alberg & Mathiesen, Brian Vad & Connolly, David, 2012. "From electricity smart grids to smart energy systems – A market operation based approach and understanding," Energy, Elsevier, vol. 42(1), pages 96-102.
    3. Clastres, Cédric, 2011. "Smart grids: Another step towards competition, energy security and climate change objectives," Energy Policy, Elsevier, vol. 39(9), pages 5399-5408, September.
    4. de Loë, Rob C. & Melnychuk, Natalya & Murray, Dan & Plummer, Ryan, 2016. "Advancing the State of Policy Delphi Practice: A Systematic Review Evaluating Methodological Evolution, Innovation, and Opportunities," Technological Forecasting and Social Change, Elsevier, vol. 104(C), pages 78-88.
    5. Ruiz-Romero, Salvador & Colmenar-Santos, Antonio & Mur-Pérez, Francisco & López-Rey, África, 2014. "Integration of distributed generation in the power distribution network: The need for smart grid control systems, communication and equipment for a smart city — Use cases," Renewable and Sustainable Energy Reviews, Elsevier, vol. 38(C), pages 223-234.
    6. Carlo Cambini & Laura Rondi, 2010. "Incentive regulation and investment: evidence from European energy utilities," Journal of Regulatory Economics, Springer, vol. 38(1), pages 1-26, August.
    7. Cambini, Carlo & Meletiou, Alexis & Bompard, Ettore & Masera, Marcelo, 2016. "Market and regulatory factors influencing smart-grid investment in Europe: Evidence from pilot projects and implications for reform," Utilities Policy, Elsevier, vol. 40(C), pages 36-47.
    8. Cédric Clastres, 2011. "Smart grids : Another step towards competition, energy security and climate change objectives," Post-Print halshs-00617702, HAL.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Duma, Daniel & Pollitt, Michael G. & Covatariu, Andrei & Giulietti, Monica, 2024. "Defining and measuring active distribution system operators for the electricity and natural gas sectors," Utilities Policy, Elsevier, vol. 87(C).
    2. Covatariu, A. & Duma, D. & Giulietti, M. & Pollitt M., 2023. "Toward an operational definition and a. methodology for measurement of the active DSO (distribution system operator) for electricity and gas," Cambridge Working Papers in Economics 2348, Faculty of Economics, University of Cambridge.
    3. Ali Darudi & Hannes Weigt, 2024. "Review and Assessment of Decarbonized Future Electricity Markets," Energies, MDPI, vol. 17(18), pages 1-38, September.
    4. Pereira, Guillermo Ivan & Pereira da Silva, Patrícia & Cerqueira, Pedro André, 2020. "Electricity distribution incumbents' adaptation toward decarbonized and smarter grids: Evidence on the role market, regulatory, investment, and firm-level factors," Energy Policy, Elsevier, vol. 142(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Friedrich Chasin & Ute Paukstadt & Patrick Ullmeyer & Jörg Becker, 2020. "Creating Value From Energy Data: A Practitioner’s Perspective on Data-Driven Smart Energy Business Models," Schmalenbach Business Review, Springer;Schmalenbach-Gesellschaft, vol. 72(4), pages 565-597, October.
    2. Balta-Ozkan, Nazmiye & Davidson, Rosemary & Bicket, Martha & Whitmarsh, Lorraine, 2013. "The development of smart homes market in the UK," Energy, Elsevier, vol. 60(C), pages 361-372.
    3. Pereira, Guillermo Ivan & Specht, Jan Martin & Silva, Patrícia Pereira & Madlener, Reinhard, 2018. "Technology, business model, and market design adaptation toward smart electricity distribution: Insights for policy making," Energy Policy, Elsevier, vol. 121(C), pages 426-440.
    4. Bracco, Stefano & Delfino, Federico & Pampararo, Fabio & Robba, Michela & Rossi, Mansueto, 2014. "A mathematical model for the optimal operation of the University of Genoa Smart Polygeneration Microgrid: Evaluation of technical, economic and environmental performance indicators," Energy, Elsevier, vol. 64(C), pages 912-922.
    5. Cambini, Carlo & Meletiou, Alexis & Bompard, Ettore & Masera, Marcelo, 2016. "Market and regulatory factors influencing smart-grid investment in Europe: Evidence from pilot projects and implications for reform," Utilities Policy, Elsevier, vol. 40(C), pages 36-47.
    6. Lin, Chen-Chun & Yang, Chia-Han & Shyua, Joseph Z., 2013. "A comparison of innovation policy in the smart grid industry across the pacific: China and the USA," Energy Policy, Elsevier, vol. 57(C), pages 119-132.
    7. Kovacic, Zora & Giampietro, Mario, 2015. "Empty promises or promising futures? The case of smart grids," Energy, Elsevier, vol. 93(P1), pages 67-74.
    8. Mehmet Efe Biresselioglu & Muhittin Hakan Demir & Sebnem Altinci, 2022. "Understanding the Citizen’s Role in the Transition to a Smart Energy System: Are We Ready?," Sustainability, MDPI, vol. 14(10), pages 1-24, May.
    9. Nallapaneni Manoj Kumar & Aneesh A. Chand & Maria Malvoni & Kushal A. Prasad & Kabir A. Mamun & F.R. Islam & Shauhrat S. Chopra, 2020. "Distributed Energy Resources and the Application of AI, IoT, and Blockchain in Smart Grids," Energies, MDPI, vol. 13(21), pages 1-42, November.
    10. Martínez-Lao, Juan & Montoya, Francisco G. & Montoya, Maria G. & Manzano-Agugliaro, Francisco, 2017. "Electric vehicles in Spain: An overview of charging systems," Renewable and Sustainable Energy Reviews, Elsevier, vol. 77(C), pages 970-983.
    11. Kokou Amega & Yendoubé Laré & Ramchandra Bhandari & Yacouba Moumouni & Aklesso Y. G. Egbendewe & Windmanagda Sawadogo & Saidou Madougou, 2022. "Solar Energy Powered Decentralized Smart-Grid for Sustainable Energy Supply in Low-Income Countries: Analysis Considering Climate Change Influences in Togo," Energies, MDPI, vol. 15(24), pages 1-24, December.
    12. Yanshan Yu & Jin Yang & Bin Chen, 2012. "The Smart Grids in China—A Review," Energies, MDPI, vol. 5(5), pages 1-18, May.
    13. Kumar, Yogesh & Ringenberg, Jordan & Depuru, Soma Shekara & Devabhaktuni, Vijay K. & Lee, Jin Woo & Nikolaidis, Efstratios & Andersen, Brett & Afjeh, Abdollah, 2016. "Wind energy: Trends and enabling technologies," Renewable and Sustainable Energy Reviews, Elsevier, vol. 53(C), pages 209-224.
    14. Weiwei Liu & Yuan Tao & Zhile Yang & Kexin Bi, 2019. "Exploring and Visualizing the Patent Collaboration Network: A Case Study of Smart Grid Field in China," Sustainability, MDPI, vol. 11(2), pages 1-18, January.
    15. Jacqueline Corbett, 2013. "Using information systems to improve energy efficiency: Do smart meters make a difference?," Information Systems Frontiers, Springer, vol. 15(5), pages 747-760, November.
    16. Kendel, Adnane & Lazaric, Nathalie & Maréchal, Kevin, 2017. "What do people ‘learn by looking’ at direct feedback on their energy consumption? Results of a field study in Southern France," Energy Policy, Elsevier, vol. 108(C), pages 593-605.
    17. Aurelie Tricoire, 2015. "Uncertainty, vision, and the vitality of the emerging smart grid," Post-Print hal-02351994, HAL.
    18. de Wildt, T.E. & Chappin, E.J.L. & van de Kaa, G. & Herder, P.M. & van de Poel, I.R., 2019. "Conflicting values in the smart electricity grid a comprehensive overview," Renewable and Sustainable Energy Reviews, Elsevier, vol. 111(C), pages 184-196.
    19. Welsch, Manuel & Bazilian, Morgan & Howells, Mark & Divan, Deepak & Elzinga, David & Strbac, Goran & Jones, Lawrence & Keane, Andrew & Gielen, Dolf & Balijepalli, V.S.K. Murthy & Brew-Hammond, Abeeku , 2013. "Smart and Just Grids for sub-Saharan Africa: Exploring options," Renewable and Sustainable Energy Reviews, Elsevier, vol. 20(C), pages 336-352.
    20. Christine Brandstätt & Gert Brunekreeft & Nele Friedrichsen, 2013. "The Need for More Flexibility in the Regulation of Smart Grids – Stakeholder Involvement," Bremen Energy Working Papers 0013, Bremen Energy Research.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sae:engenv:v:31:y:2020:i:1:p:40-59. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: SAGE Publications (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.