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Smart grids and renewable electricity generation by households

Author

Listed:
  • Prudence Dato

    (Unibas - Université de Bâle = University of Basel = Basel Universität)

  • Tunç Durmaz

    (YTU - Yildiz Technical University)

  • Aude Pommeret

    (IREGE - Institut de Recherche en Gestion et en Economie - USMB [Université de Savoie] [Université de Chambéry] - Université Savoie Mont Blanc)

Abstract

This paper analyzes investments in solar panels and energy storage at a household (HH) level and studies the consequences of demand-side management for a HH by accounting for three levels of equipment in smart grids. The first level refers to the possibility of feeding electricity to the grid, which can be achieved relatively simply by net metering. The second level concerns the installation of smart meters. The third level relates to energy storage. Additionally, we look at the welfare impact of a policy imposing the installation of smart meters and the implications of curtailment measures to avoid congestion. Our analysis conveys core messages for the policymakers by showing that smart meter deployment can be welfare worsening and lead to higher grid electricity purchase depending on the tariffs. In turn, greenhouse gas emissions can be higher if fossil fuels hold a significant share in grid electricity production. This calls for regulation of tariff rates.

Suggested Citation

  • Prudence Dato & Tunç Durmaz & Aude Pommeret, 2020. "Smart grids and renewable electricity generation by households," Post-Print hal-03967865, HAL.
    • Handle: RePEc:hal:journl:hal-03967865
    DOI: 10.1016/j.eneco.2019.104511
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Sai Bravo & Carole Haritchabalet, 2023. "Prosumers: Grid Storage vs Small Fuel-Cell," Working Papers hal-04119625, HAL.
    2. Francesca Andreolli & Chiara D'Alpaos & Peter Kort, 2023. "Does P2P Trading Favor Investments in PV-Battery Systems?," Working Papers 2023.02, Fondazione Eni Enrico Mattei.
    3. Ambec, Stefan & Crampes, Claude, 2021. "Real-time electricity pricing to balance green energy intermittency," Energy Economics, Elsevier, vol. 94(C).
    4. Tunç Durmaz & Aude Pommeret & Ian Ridley, 2017. "Willingness to Pay for Solar Panels and Smart Grids," Working Papers 2017.24, Fondazione Eni Enrico Mattei.
    5. Andreolli, Francesca & D’Alpaos, Chiara & Moretto, Michele, 2022. "Valuing investments in domestic PV-Battery Systems under uncertainty," Energy Economics, Elsevier, vol. 106(C).
    6. Icaza, Daniel & Borge-Diez, David & Galindo, Santiago Pulla, 2022. "Analysis and proposal of energy planning and renewable energy plans in South America: Case study of Ecuador," Renewable Energy, Elsevier, vol. 182(C), pages 314-342.
    7. Moiz Masood Syed & Gregory M. Morrison & James Darbyshire, 2020. "Shared Solar and Battery Storage Configuration Effectiveness for Reducing the Grid Reliance of Apartment Complexes," Energies, MDPI, vol. 13(18), pages 1-23, September.
    8. Sai Bravo & Carole Haritchabalet, 2023. "Prosumers: Grid Storage vs Small Fuel-Cell," Working papers of Transitions Energétiques et Environnementales (TREE) hal-04119625, HAL.

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    More about this item

    Keywords

    Renewable energy; Intermittency; Distributed generation; Smart solutions; Energy storage; Demand response; Regulation;
    All these keywords.

    JEL classification:

    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • D61 - Microeconomics - - Welfare Economics - - - Allocative Efficiency; Cost-Benefit Analysis
    • D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty
    • Q41 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Demand and Supply; Prices
    • Q42 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Alternative Energy Sources

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