The impact of energy transition on distribution network costs and effectiveness of yardstick competition: an empirical analysis for the Netherlands

IF 1.4 4区经济学 Q3 ECONOMICS

Journal of Regulatory Economics Pub Date : 2024-03-04 DOI:10.1007/s11149-024-09471-8

Floris van Montfoort, Peter T. Dijkstra, Machiel Mulder

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Abstract

We assess the impact of regional differences related to energy transition on average costs and allowed revenues for a panel of Dutch electricity distribution system operators (DSOs) subject to yardstick competition. Yardstick competition entails that the allowed revenues of DSOs are based on the average costs of the entire industry, which requires that these DSOs are comparable. This comparability requirement is challenged by the penetration of distributed generation and other distributed energy resources, which may cause regional differences among DSOs. Estimating an average-cost function for the entire population of Dutch DSOs for the period 2012–2020, we find that the installed capacity of solar PV, installed capacity of on-shore wind and number of public electric-vehicle charging points have a significant effect on unit costs of DSOs. If yardstick competition does not take these effects into account, the allowed revenues for some DSOs (having above-average shares of energy-transition variables) are too low, whereas allowed revenues for other DSOs (having below-average shares of energy-transition variables) are too high. We find that taking the impact into account can change the price caps of individual DSOs with a percentage up to around 20%.

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能源转型对配电网成本的影响和尺度竞争的有效性：荷兰的经验分析

我们评估了与能源转型相关的地区差异对荷兰配电系统运营商（DSOs）平均成本和允许收入的影响。标准竞争要求配电系统运营商的允许收入以整个行业的平均成本为基础，这就要求这些配电系统运营商具有可比性。由于分布式发电和其他分布式能源资源的渗透，这种可比性要求受到了挑战，因为这可能会造成各 DSO 之间的地区差异。通过估算 2012-2020 年期间荷兰所有 DSO 的平均成本函数，我们发现太阳能光伏装机容量、陆上风能装机容量和公共电动汽车充电点数量对 DSO 的单位成本有显著影响。如果不考虑这些影响，一些 DSO（能源转换变量份额高于平均水平）的允许收益就会过低，而另一些 DSO（能源转换变量份额低于平均水平）的允许收益就会过高。我们发现，考虑到这一影响可改变单个 DSO 的价格上限，改变的百分比最高约为 20%。

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来源期刊

Journal of Regulatory Economics ECONOMICS-

CiteScore

2.40

自引率

0.00%

发文量

期刊介绍： Recent legislative and policy reforms have changed the nature of regulation. Partial deregulation has created a new dimension to regulatory problems, as the debate is extended to include diversification and new forms of regulation. The introduction of incentive-based rate schedules and ratemaking procedures, the integration of demand-side programs with planning for capitol expansion, and other developments, raise a host of theoretical and empirical questions. The Journal of Regulatory Economics serves as a high quality forum for the analysis of regulatory theories and institutions by developing the rigorous economics foundations of regulation. Both theoretical and applied works, including experimental research, are encouraged. Research in all aspects of regulation is of interest including traditional problems of natural monopoly, antitrust and competition policy, incentive regulation, deregulation, auction theory, new policy instruments, health and safety regulation, environmental regulation, insurance and financial regulation, hazardous and solid waste regulation, universal service obligation, and consumer product regulation. The JRE provides researchers, policy-makers, and institutions with current perspectives on the theory and practice of economics of regulation. While there are a number of journals and magazines that include the study of regulation, the JRE is unique in that it fills a gap in the market for a high quality journal dealing solely with the economics of regulation.Officially cited as: J Regul Econ