Spillover effects of distribution grid tariffs in the internal electricity market: An argument for harmonization?

A-Tier
Journal: Energy Economics
Year: 2019
Volume: 84
Issue: C

Authors (5)

Govaerts, Niels (not in RePEc) Bruninx, Kenneth (not in RePEc) Le Cadre, Hélène (not in RePEc) Meeus, Leonardo (Vlerick Business School) Delarue, Erik (not in RePEc)

Score contribution per author:

0.804 = (α=2.01 / 5 authors) × 2.0x A-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

In many countries, distribution grid tariffs are being reformed to adapt to the new realities of an electricity system with distributed energy resources. In Europe, legislative proposals have been made to harmonize these reforms across country borders. Many stakeholders have argued that distribution tariffs are a local affair, while the European institutions argued that there can be spillovers to other countries, which could justify a more harmonized approach. In this paper, we quantify these spillovers in a simplified numerical example to give insight and an order of magnitude. We look at different scenarios, and find that the spillovers can be both negative and positive. To be able to quantify these effects, we developed a long-run market equilibrium model that captures the wholesale market effects of distribution grid tariffs. The problem is formulated as a non-cooperative game involving consumers, generating companies and distribution system operators in a stylized electricity market.

Technical Details

RePEc Handle
repec:eee:eneeco:v:84:y:2019:i:c:s0140988319302403
Journal Field
Energy
Author Count
5
Added to Database
2026-01-26