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Regulating electricity spot markets during extreme events: The 2021 Texas case
IF 3.8 3区 经济学 Q3 ENERGY & FUELS Pub Date : 2025-01-16 DOI: 10.1016/j.jup.2025.101891
Armen Danielian
This paper discusses the economic and legal challenges of price regulation in spot electricity markets during extreme events, taking the 2021 Texas winter storm as an example. The dual role of spot electricity prices (resource allocation and overall system reliability) in ERCOT's energy-only market resulted in allocating system reliability costs to load-shed consumers and spot electricity buyers, implying that complementary tools for covering system reliability costs should be sought. Further nuances are highlighted through a comparative qualitative analysis of value-of-lost-load pricing and anti-gouging legislation in the event context.
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引用次数: 0
Impact of distribution locational marginal pricing and cost-sharing pricing mechanisms on fairness, efficiency, and voltage quality in transactive energy systems
IF 3.8 3区 经济学 Q3 ENERGY & FUELS Pub Date : 2025-01-11 DOI: 10.1016/j.jup.2025.101890
Daniel Galeano-Suárez , David Toquica , Nilson Henao , Kodjo Agbossou , JC Oviedo-Cepeda
The increasing integration of distributed energy resources and the evolution of smart grids pave the way to Transactive Energy Systems (TES). Numerous initiatives have been made to craft pricing mechanisms on TES as incentives to leverage resource flexibility and contribute to improving technical and economic indexes. Nevertheless, comparing these pricing mechanisms is challenging due to the fluctuating market conditions and diverse TES configurations. This research compares the impact of the Distribution Locational Marginal Pricing (DLMP) and Cost-Sharing (CS) pricing mechanisms on TES fairness, economic efficiency, and voltage quality under identical market conditions. In addition, a unified index is proposed to compile market metrics and facilitate Distribution System Operator (DSO) decisions on pricing according to weighted objectives. Accordingly, this research contributes valuable insights that promote TES expansion and better management for DSOs and market regulators. This paper uses a transactive forward market on the IEEE-33 bus test system as a case study. The results show that CS pricing yields complete price fairness. In contrast, the DLMP forgo fairness for the sake of economic efficiency. Here, the unified index reveals that CS pricing is preferable when the DSO weights equally fairness and efficiency, even though DLMP demonstrates a superior voltage quality index in the case study. The developed comparison framework is general to all pricing mechanisms as it simplifies the interactions between the DSO and the consumers through price and energy demand signals.
{"title":"Impact of distribution locational marginal pricing and cost-sharing pricing mechanisms on fairness, efficiency, and voltage quality in transactive energy systems","authors":"Daniel Galeano-Suárez ,&nbsp;David Toquica ,&nbsp;Nilson Henao ,&nbsp;Kodjo Agbossou ,&nbsp;JC Oviedo-Cepeda","doi":"10.1016/j.jup.2025.101890","DOIUrl":"10.1016/j.jup.2025.101890","url":null,"abstract":"<div><div>The increasing integration of distributed energy resources and the evolution of smart grids pave the way to Transactive Energy Systems (TES). Numerous initiatives have been made to craft pricing mechanisms on TES as incentives to leverage resource flexibility and contribute to improving technical and economic indexes. Nevertheless, comparing these pricing mechanisms is challenging due to the fluctuating market conditions and diverse TES configurations. This research compares the impact of the Distribution Locational Marginal Pricing (DLMP) and Cost-Sharing (CS) pricing mechanisms on TES fairness, economic efficiency, and voltage quality under identical market conditions. In addition, a unified index is proposed to compile market metrics and facilitate Distribution System Operator (DSO) decisions on pricing according to weighted objectives. Accordingly, this research contributes valuable insights that promote TES expansion and better management for DSOs and market regulators. This paper uses a transactive forward market on the IEEE-33 bus test system as a case study. The results show that CS pricing yields complete price fairness. In contrast, the DLMP forgo fairness for the sake of economic efficiency. Here, the unified index reveals that CS pricing is preferable when the DSO weights equally fairness and efficiency, even though DLMP demonstrates a superior voltage quality index in the case study. The developed comparison framework is general to all pricing mechanisms as it simplifies the interactions between the DSO and the consumers through price and energy demand signals.</div></div>","PeriodicalId":23554,"journal":{"name":"Utilities Policy","volume":"93 ","pages":"Article 101890"},"PeriodicalIF":3.8,"publicationDate":"2025-01-11","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143164058","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
引用次数: 0
Microgrid operation strategies considering government subsidies and user preferences based on evolutionary games
IF 3.8 3区 经济学 Q3 ENERGY & FUELS Pub Date : 2025-01-07 DOI: 10.1016/j.jup.2024.101884
Lei Zhou , Jiayue Wang
Currently, many countries have introduced policies to support the development of microgrids. However, the fixed tariff mechanism faces challenges due to the intermittent and volatile nature of renewable energy supply. Therefore, this paper constructs a tripartite evolutionary game model containing the government, users, and microgrids. It considers the impact of subsidies on market tariffs and investigates the range of tariffs. The model incorporates government subsidies derived from prior research to analyze their effects on microgrids and users, offering guidance for formulating government subsidy programs and serving as a significant reference for microgrid pricing.
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引用次数: 0
A clustering scheme for performance benchmarking in the regulation of electric distribution utilities in Iran
IF 3.8 3区 经济学 Q3 ENERGY & FUELS Pub Date : 2025-01-07 DOI: 10.1016/j.jup.2024.101881
Mohammad Pourheydari , Mahyar Gholizadeh , Shakiba Sadeghi , Ashkan Hojjati , Fatemeh Goltapeh
In electric distribution company (DisCos) performance, the effect of imposed features such as network size, economic progress, and geographical conditions is considerable. In this research, K-means clustering is used to model the impact of imposed characteristics in the benchmarking analysis. Commonly, benchmarking studies are focused on DisCos at the outcome stage. However, the efficiency of working processes is as crucial as the outcomes in every organization. This paper proposes a novel combinatorial method integrating quantitative and qualitative measures to benchmark DisCos in both outcome and process stages. In the quantitative section, DisCos’ outcomes are benchmarked through key performance indicators (KPIs). In the qualitative section, utilizing balanced scorecards (BSCs) for measuring the efficiency of DisCos at the process stage is suggested. Ranking under study DisCos, a scoring model based on the normalized summation of obtained scores from KPIs and BSCs, is formulated. Monitoring DisCos’ performance specifically under each of the performance fields in addition to the consequent efficiency scores is attended for analyzing benchmarking results. Eventually, a knowledge management scheme is suggested. Under this framework, each DisCo’s true performance instance is incorporated to gain insights from the accomplishments of similar utilities. This study is useful in regulatory programs for identifying the weaknesses and strengths of utilities or even regulators toward strategic targets, presenting a performance basis, and reducing the performance gaps between utilities.
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引用次数: 0
Public opinion on smart infrastructure in China: Evidence from social media
IF 3.8 3区 经济学 Q3 ENERGY & FUELS Pub Date : 2025-01-04 DOI: 10.1016/j.jup.2025.101886
Guanying Huang , Dezhi Li , Shenghua Zhou , S. Thomas Ng , Wentao Wang , Lingxiao Wang
This study analyzes how public opinion on smart infrastructure (SI) in China varies across space and time based on social media data to inform the prioritization of infrastructure investment. The results indicated that (i) the number of total posts on SI increased exponentially, with a greater focus on smart energy; (ii) the proportion of positive and neutral posts increased and decreased, respectively, while the negative remained at a low proportion; (iii) the duration of non-negative topics showed continuous and occasional patterns and regional consistency, while the negative showed an intermittent pattern and regional heterogeneity.
{"title":"Public opinion on smart infrastructure in China: Evidence from social media","authors":"Guanying Huang ,&nbsp;Dezhi Li ,&nbsp;Shenghua Zhou ,&nbsp;S. Thomas Ng ,&nbsp;Wentao Wang ,&nbsp;Lingxiao Wang","doi":"10.1016/j.jup.2025.101886","DOIUrl":"10.1016/j.jup.2025.101886","url":null,"abstract":"<div><div>This study analyzes how public opinion on smart infrastructure (SI) in China varies across space and time based on social media data to inform the prioritization of infrastructure investment. The results indicated that (i) the number of total posts on SI increased exponentially, with a greater focus on smart energy; (ii) the proportion of positive and neutral posts increased and decreased, respectively, while the negative remained at a low proportion; (iii) the duration of non-negative topics showed continuous and occasional patterns and regional consistency, while the negative showed an intermittent pattern and regional heterogeneity.</div></div>","PeriodicalId":23554,"journal":{"name":"Utilities Policy","volume":"93 ","pages":"Article 101886"},"PeriodicalIF":3.8,"publicationDate":"2025-01-04","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143099147","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
引用次数: 0
Turmoil in the Chilean electricity sector: A failed attempt at using advanced contracts for differences to support the energy transition?
IF 3.8 3区 经济学 Q3 ENERGY & FUELS Pub Date : 2025-01-03 DOI: 10.1016/j.jup.2024.101882
Jesús Ansede Ferreiro , Enrique San-Martín González
The Chilean electricity market is at a critical moment. Some renewable energy generators that signed regulated power purchase agreements with distribution companies are experiencing financial distress. Generators assume locational basis risk under these contracts, which can be considered advanced contracts for differences. As price decoupling appeared in the network, some generators filed for bankruptcy. The Chilean government is studying measures to weather the storm, and an expert panel has been set up to assess them. The European Union is betting on advanced contracts for differences, but the Chilean empirical evidence calls for caution when adjusting plain contracts for differences.
{"title":"Turmoil in the Chilean electricity sector: A failed attempt at using advanced contracts for differences to support the energy transition?","authors":"Jesús Ansede Ferreiro ,&nbsp;Enrique San-Martín González","doi":"10.1016/j.jup.2024.101882","DOIUrl":"10.1016/j.jup.2024.101882","url":null,"abstract":"<div><div>The Chilean electricity market is at a critical moment. Some renewable energy generators that signed regulated power purchase agreements with distribution companies are experiencing financial distress. Generators assume locational basis risk under these contracts, which can be considered advanced contracts for differences. As price decoupling appeared in the network, some generators filed for bankruptcy. The Chilean government is studying measures to weather the storm, and an expert panel has been set up to assess them. The European Union is betting on advanced contracts for differences, but the Chilean empirical evidence calls for caution when adjusting plain contracts for differences.</div></div>","PeriodicalId":23554,"journal":{"name":"Utilities Policy","volume":"93 ","pages":"Article 101882"},"PeriodicalIF":3.8,"publicationDate":"2025-01-03","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143099145","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
引用次数: 0
Techno-economic assessment and optimization of grid-connected solar PV systems in Saudi Arabia's building sector
IF 3.8 3区 经济学 Q3 ENERGY & FUELS Pub Date : 2025-01-03 DOI: 10.1016/j.jup.2024.101885
K.M. Almohammadi , A. Allouhi
This research proposes an optimum grid-connected photovoltaic (PV) installation to meet the energy requirements of residential buildings in Saudi Arabia (KSA). Load profile data is used to establish a realistic electricity demand pattern. Sensitivity analyses are performed for 19 cities, varying the renewable fraction from 0% to 100%, to determine the minimum renewable energy fraction required to achieve competitive Cost of Energy (COE) values. The results show that increasing the renewable fraction reduces the COE of PV systems but leads to higher capital costs and Net Present Cost (NPC). The study also emphasizes the importance of considering CO2 emissions reduction achievable through PV system integration. Based on tradeoffs between renewable fraction and NPC, Hail, Sakaka, and Jeddah rank as the top three sites, balancing economic viability and renewable energy utilization. The outcomes provide valuable insights for decision-making and promote sustainable energy transition in KSA. Grid-connected PV systems bring social benefits, including job creation, improved living conditions, reduced emissions, enhanced energy security, and increased public awareness. This research contributes to understanding the renewable energy landscape in KSA and provides a methodology based on a multi-criteria assessment, using a search space algorithm to minimize the NPC or identify optimal PV installation sites that support the decisions of energy policymakers.
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引用次数: 0
Can electrification mitigate the marginal cost of carbon emission abatement? Evidence from China
IF 3.8 3区 经济学 Q3 ENERGY & FUELS Pub Date : 2025-01-03 DOI: 10.1016/j.jup.2024.101883
Hui Chen, Yongqing Wang
Our study assesses the impact of China's electrification rate on the marginal cost of carbon emission abatement. Employing the linear econometric model with squared terms and the spatial Durbin model, we reveal an inverted U-shaped non-linear relationship between electrification and marginal abatement costs of the local and neighboring areas, with the turning point corresponding to an electrification rate of 31.34% and 19.60% respectively. In short, increased electrification helps mitigate marginal abatement costs. Moreover, we also observed that the differences in electricity supply and demand significantly affect the causal relationship between electrification and marginal abatement costs.
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引用次数: 0
Understanding the variability of residential energy poverty in India
IF 3.8 3区 经济学 Q3 ENERGY & FUELS Pub Date : 2024-12-30 DOI: 10.1016/j.jup.2024.101878
Biswajit Tikadar, Deepika Swami
Residential energy poverty is the lack of accessible, reliable, clean energy services. Researchers have not reached a consensus about defining and measuring energy poverty, leading to ineffective energy-related policy formulation. Existing approaches simplify energy poverty to a "yes-no" approach, neglecting its multidimensional nature. The subjective parameters and thresholds used further introduce uncertainty and bias. We addressed this gap by formulating a comprehensive Residential Energy Poverty Index (REPI) for Indian states by adopting a multidimensional approach, including clean and green energy, energy efficiency, accessibility and reliability, and appliances. The current approach focuses on energy availability beyond basic needs and should look at the broader dimensions of quality of life, socioeconomic well-being, education, and environmental sustainability. The work is based on the Indian residential energy survey conducted by CEEW, which included 14,850 households across 21 Indian states. REPI was constructed by assigning weightage to different variables across four dimensions using Principal Component Analysis. Multiple Linear Regression was utilized to identify the socioeconomic factors impacting REPI.
Findings reveal that enhancing energy efficiency and decentralized solar power, particularly in states like Chhattisgarh and Jharkhand, can significantly improve energy access and reliability. Factors such as primary education and female-headed households correlate with lower energy poverty, while poor housing, rural areas, marginal groups, and primary economic activities like agriculture correlate with higher energy poverty. The findings highlight the importance of tailored state-specific policies like decentralized renewable energy, energy cleanliness and awareness campaigns to address residential energy poverty in India.
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引用次数: 0
Drivers of mobile broadband pricing: Cross-national evidence on policy and market dynamics
IF 3.8 3区 经济学 Q3 ENERGY & FUELS Pub Date : 2024-12-20 DOI: 10.1016/j.jup.2024.101879
Raúl Katz , Juan Jung
This paper investigates the reasons underlying the diversity in mobile broadband prices across 182 countries from 2013 to 2022. Our analysis examines the interplay among three groups of variables: policy frameworks, market conditions, and pricing mechanisms. Our results suggest that countries should adopt advanced regulatory practices regarding licensing, infrastructure sharing, spectrum flexibility, and competition to lower mobile broadband prices. In addition, moderate taxation is required to stimulate investment, expand coverage, and promote competition, thereby lowering prices. Reduction of operators’ operating expenses can also play a crucial role.
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引用次数: 0
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Utilities Policy
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