{"title":"Multi-Method Approach to Compare the Socio-Demographic Typology of Residents and Clusters of Electricity Load Curves in a Swiss Sustainable Neighbourhood","authors":"Francesco Cimmino, J. Mastelic, Stephane Genoud","doi":"10.2139/ssrn.3282333","DOIUrl":"https://doi.org/10.2139/ssrn.3282333","url":null,"abstract":"A sustainable neighbourhood was built Switzerland by one of the leaders in this field. Half of the 400 apartments have been equipped with smart meters delivering big data on energy consumption (electricity, water, heating…). The company would like to know if it is possible to link socio-demographic typology of residents with energy consumption patterns. To answer this question we present in this article a multimethod approach combining qualitative analysis, frequently used in marketing (multiple correspondence analyses), and quantitative analysis from applied statistics to answer this question. First, we have conducted a survey among the residents of the sustainable neighbourhood to gather socio-demographic data, and then we have proposed a marketing typology of residents. In parallel, we have analysed load curves with statistical models (clustering factors, hermano beta models, coincidence factors, som, expert practice) to see if there are patterns of energy consumption and to determine groups of similar load curves. Then we have compared the discrepancies in the composition of the groups between both methods. This study is based on a single case study generating a new research hypothesis: the typology of residents based on socio-demographic data can be linked to energy consumption pattern of a household.","PeriodicalId":204209,"journal":{"name":"SRPN: Energy Politics (Topic)","volume":"218 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2016-09-08","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"122485527","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"A Probabilistic Approach to the Computation of the Levelized Cost of Electricity","authors":"T. Geissmann, Oriana Ponta","doi":"10.2139/ssrn.2949308","DOIUrl":"https://doi.org/10.2139/ssrn.2949308","url":null,"abstract":"This paper sets forth a novel approach to calculate the levelized cost of electricity (LCOE) using a probabilistic model that accounts for endogenous input parameters. The approach is applied to the example of a nuclear and gas power project. Monte Carlo simulation results show that a correlation between input parameters has a significant effect on the model outcome. By controlling for endogeneity, a statistically significant difference in the mean LCOE estimate and a change in the order of input leverages is observed. Moreover, the paper discusses the role of discounting options and external costs in detail. In contrast to the gas power project, the economic viability of the nuclear project is considerably weaker.","PeriodicalId":204209,"journal":{"name":"SRPN: Energy Politics (Topic)","volume":"4 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2016-08-28","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"125262158","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Power Play: The Termination of Alberta's PPAs","authors":"A. Leach, Trevor Tombe","doi":"10.11575/SPPP.V9I0.42596","DOIUrl":"https://doi.org/10.11575/SPPP.V9I0.42596","url":null,"abstract":"By now, any Albertans who follow the news are probably aware of something called a Power Purchase Arrangement (PPA). Up until a few months ago, the PPA holders — which included TransCanada, ENMAX, and Capital Power — were responsible for buying electricity from legacy power plants at pre-determined rates and selling it into the grid. But with power prices falling and costs rising, the PPAs are no longer profitable. So, early in 2016, they backed away from these arrangements and handed the money losing PPAs over to an entity known as the Balancing Pool. With the electricity bills of Alberta households and business in the balance, it’s been a high-stakes dispute between the companies and the government ever since. The government estimates losses to Alberta ratepayers may be up to $2 billion and alleges the regulations under which the companies terminated their PPAs are invalid. They’re going to court to try and prove it. The companies counter with substantially lower cost estimates and point to changes in government policy as a permissible reason for termination. How did we end up here? How costly will the PPA terminations really be? Given the importance of this issue, we cut through the politics and see what data has to say. There are three key pieces to the puzzle. First, in June 2015 the province strengthened rules around emissions from large industrial facilities. The new rules gave more ambitious targets to facilities and increased the charge on greenhouse gas emissions above their targets from $15 per tonne to $30. Second, in November 2015, the Climate Leadership Panel recommended leaving the price on emissions at $30 per tonne but changing the targets to treat all power producers equally regardless of their emissions intensity. For coal, this was a big hit, and the industry was recommending — and hoping for — a better deal that they didn’t get. Finally, and perhaps most importantly, electricity prices collapsed. Despite the fears of many, the new climate policies are unlikely to increase electricity prices. This makes it difficult for coal power to cover its now higher costs. Overall, we find policy changes account for roughly half the drop in PPA values, while falling prices account for the other half. The good news for Albertans is the drop in value appears to amount only to $900 million, and since one of the PPAs is already owned by Alberta’s Balancing Pool the real cost of these changes is closer to $600 million. All in, that amounts to about $2.25 a month for a typical household, but it will only show up if power prices remain very low. So, while there is a chance consumers will pay it, they will only end up doing so if they are saving far more on power.","PeriodicalId":204209,"journal":{"name":"SRPN: Energy Politics (Topic)","volume":"33 3-4","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2016-08-09","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"114026228","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Energy Prosumers and Infrastructure Regulation: Some Initial Observations from Australia","authors":"A. Daly","doi":"10.2139/ssrn.2800162","DOIUrl":"https://doi.org/10.2139/ssrn.2800162","url":null,"abstract":"This paper will present some initial reflections about the rise of ‘energy prosumers’ and the implications for the regulation of energy infrastructure. With the decentralized micro-production of energy becoming increasingly available through the declining price of photovoltaic technology (solar panels) and, to a lesser extent, wind turbines, the idea of the ‘prosumer’ - developed in relation to ‘disruptive’ media and communications technologies, free software and 3D printing - has also become relevant to energy, since individuals now have the ability and means to produce energy as well as consume it. Individuals or community groups can sell excess energy that they have generated back to the grid or opt to go ‘off-grid’ entirely. In addition, going off-grid or being part of a small-scale energy network may have further benefits in terms of promoting energy localisation, resilience and sustainability, which may be of particular appeal to communities or individuals in remote areas living far from large population centres. Since these small-scale energy generation technologies usually involve the generation of renewable energy there are additional social benefits to this energy production in terms of contributing towards the reduction of carbon emissions and the promotion of clean and sustainable energy. The digitization of energy grids and smart meters, and the development of household battery storage cross-fertilise this decentralized micro-production of energy and enhance the ‘prosumer’ experience.However, the emergence of energy prosumers stands in stark contrast to the centralized model of energy production in developed economies, which forms the paradigm on which existing energy regulation is built. Yet prosumers in other areas of production, such as the Internet and 3D printing contexts, have also proved ‘disruptive’ to existing laws. Prosumers in the guise of ‘user’ are recognised to some extent by copyright law but other areas such as competition law have been less willing to acknowledge productive individuals. While the forthcoming net neutrality regulation might go some way to acknowledging and integrating prosumers into EU telecoms regulation the concept would still seem to be disruptive for other areas of existing utilities regulation. Energy would appear to be among these, experiencing only recently issues of decentralization which have characterized and transformed communications since the advent of digitization and the Internet’s widespread take-up. This paper will critically examine the development of energy prosumers and provide some initial reflections on their trajectory within current infrastructure regulation, and what might need to be changed to better accommodate them, particularly in the Australian context. The issue of renewable energy has become highly politicized in Australia, despite the country having some of the best natural resources for this kind of production. Yet Australia’s ‘tyranny of distance’ characterising many","PeriodicalId":204209,"journal":{"name":"SRPN: Energy Politics (Topic)","volume":"1 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2016-06-24","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"129373662","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Frictional Costs of Fossil Fuel Divestment","authors":"H. Bessembinder","doi":"10.2139/ssrn.2789878","DOIUrl":"https://doi.org/10.2139/ssrn.2789878","url":null,"abstract":"Advocacy for fossil fuel divestment has been growing on college campuses nationwide in recent years. In contrast with prior literature, which focuses on the impact of divestment on returns, I investigate the “frictional” costs that college and university endowments incur in implementing fossil fuel divestment, including transaction costs and ongoing monitoring and active management costs. I find that these costs are likely to be substantial, for the following reasons. First, endowments are long-term investors that tend to hold illiquid assets that are costly to sell. Second, endowments frequently invest in mutual funds or commingled funds, which requires them to sell more than just fossil-fuel-related assets in order to divest. Third, since there is no well-defined and agreed-upon list of assets that are fossil-fuel-related, investment managers must undertake a degree of active management in order to maintain compliance with divestment goals. Overall, I estimate a total cost to endowments over 20 years due to the frictional costs of divestment that range between approximately 2 and 12 percent of the endowment’s value, which, for a typical large university endowment, would translate to a decline in value of between $1.4 billion and $7.4 billion.","PeriodicalId":204209,"journal":{"name":"SRPN: Energy Politics (Topic)","volume":"53 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2016-06-03","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"129919489","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"The Energy Market Investigation: CMA's Provisional Findings and Recommendations on the Reform of Ofgem's Statutory Duties","authors":"Kalpana Tyagi","doi":"10.2139/SSRN.2788047","DOIUrl":"https://doi.org/10.2139/SSRN.2788047","url":null,"abstract":"This brief presents the Governance & Codes AEC and the remedies as proposed by the CMA in its provisional findings & recommendations. In the follow-up article, we discuss the European Commission's initiative to promote transparency in the Energy Markets through REMIT (article 2) followed by an intra-disciplinary analysis involving competition and regulation law on how the proposed remedies, may lead to additional competition law concerns and privacy issues in the Energy sector (article 3).","PeriodicalId":204209,"journal":{"name":"SRPN: Energy Politics (Topic)","volume":"7 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2016-06-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"116173211","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"La Società Meridionale di Elettricità (S.M.E.) dalla ricostruzione alla nazionalizzazione del settore elettrico italiano 1946-1962. (The Southern Company for Electricity (S.M.E.) from Rebuilding to the Nationalization of the Italian Electricity Sector Italian from 1946 to 1962)","authors":"G. Russo","doi":"10.2139/ssrn.2776860","DOIUrl":"https://doi.org/10.2139/ssrn.2776860","url":null,"abstract":"Italian Abstract: Il questo lavoro si mira a ricostruire la politica di sviluppo perseguita dalla Societa Meridionale di Elettricita (SME). Essa ha svolto l'attivita di produzione e distribuzione dell'energia elettrica nell'Italia Meridionale continentale, dall'inizio del Novecento fino al 1962, data della nazionalizzazione del settore elettrico italiano. I punti di forza della SME sono scaturiti da una politica di ricapitalizzazione del capitale sociale e dai finanziamenti agevolati ottenuti dalla World Bank a meta degli anni 60. Infine, dopo aver dato uno sguardo al tema della tariffe di fornitura di energia, viene effettuata una brave riflessione sull'interruzione dell'operativita della SME causata dalla nascita dell'Enel dovuta alla nazionalizzazione del settore di riferimento.English Abstract: The This paper aims to reconstruct the development policy pursued by the Societa Meridionale di Elettricita (SME). It has carried out the electricity production and distribution activities in Southern Italy, since the beginning of the twentieth century until 1962, the date of the nationalization of the Italian electricity sector. The SME strengths have resulted from a by the World Bank in the share capital and subsidized loans obtained recapitalization policy in the mid 60. Finally, after having taken a look at the issue of energy supply tariffs, it makes a good reflection on the interruption of EMS operations, caused by the birth of Enel due to the nationalization of the sector.","PeriodicalId":204209,"journal":{"name":"SRPN: Energy Politics (Topic)","volume":"257 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2016-05-06","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"134575286","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Competition at the Grid Edge: Innovation and Antitrust Law in the Electricity Sector","authors":"M. Wara","doi":"10.2139/SSRN.2765502","DOIUrl":"https://doi.org/10.2139/SSRN.2765502","url":null,"abstract":"The advent of distributed energy technologies, most notably, distributed solar energy, poses a competitive threat to the electric utility industry. Here I provide a comprehensive assessment of the U.S. electric utility industry's regulatory response to this threat over the past three years. Electric utilities across the United States are asking their Public Utility Commissions for changes in rate structures that, depending on their details, may either reduce cross-subsidies to distributed energy resources or may be erecting much higher barriers to entry for innovative energy technologies and business models. Usually, a utility's actions are exempt from antitrust scrutiny under the State Action Immunity and Filed Rate doctrines. I argue that in the case of the utility response to distributed energy, this may not be the case. Because the risk exists, both electric utilities and their overseeing commissions need to make much greater efforts to evaluate the competitive impacts of changes in rates - a consideration that is largely absent from the proceedings to date. By doing so, they will both ensure that society’s interest in a cleaner, more innovative, more productive energy sector is protected and at the same time minimize their own risks of liability under the antitrust statutes.","PeriodicalId":204209,"journal":{"name":"SRPN: Energy Politics (Topic)","volume":"10 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2016-04-15","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"129340941","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
M. Costa-Campi, Daniel Davi-Arderius, Elisa Trujillo-Baute
{"title":"The Economic Impact of Electricity Losses","authors":"M. Costa-Campi, Daniel Davi-Arderius, Elisa Trujillo-Baute","doi":"10.2139/ssrn.2758420","DOIUrl":"https://doi.org/10.2139/ssrn.2758420","url":null,"abstract":"Although electricity losses constitute an important, but inevitable, amount of wasted resources (and a share that has to be funded), they remain one of the lesser known parts of an electricity system, and this despite the fact that the decisions of generators, transmission and distribution system operators and consumers all impact on them. In this paper we analyse the effects of such losses from two perspectives: from that of consumption or outflows and from that of generation or inflows. Given that end-user consumption varies across the day, consumption has direct implications for electricity losses. Indeed, demand-side management policies seek to encourage consumers to use less energy during peak hours and to reduce network congestion. At the same time, from the perspective of generation, the recent growth in distributed generation has modified the traditional, unidirectional, downward flows in electricity systems. This affects losses as energy is produced in the lower voltage network, which is closer to points of consumption. In this paper we evaluate the impact of consumption patterns and different generation technologies on energy losses. To do so, we draw on data from a real electricity system with a high level of renewable penetration, namely, that of Spain between 2011 and 2013. To the best of our knowledge, this is the first paper to analyse the real impact of consumption and the effect of each generation technology on energy losses, offering an opportunity to evaluate the potential benefits of demand-side management policies and distributed generation. Based on our results, we make a number of regulatory recommendations aimed at exploiting to the full these potential benefits. Our results should serve as a baseline for countries that are in the early stages of implementing these policies.","PeriodicalId":204209,"journal":{"name":"SRPN: Energy Politics (Topic)","volume":"60 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2016-02-25","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"134176584","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Including System Integration of Variable Renewable Energies in a Constant Elasticity of Substitution Framework: The Case of the WITCH Model","authors":"Samuel Carrara, G. Marangoni","doi":"10.2139/ssrn.2718136","DOIUrl":"https://doi.org/10.2139/ssrn.2718136","url":null,"abstract":"The penetration of Variable Renewable Energies (VREs) in the electricity mix poses serious challenges in terms of management of the electrical grids, as the associated variability and non-dispatchability are in contrast with the requirement that the load be instantaneously equalized by the generation. One of the goals of Integrated Assessment Models (IAMs) is to simulate the evolution of electricity demand and generation mix over time, therefore a proper modeling of VRE system integration is crucial. In this paper we discuss how different modeling mechanisms can profoundly impact the evolution of the electricity mix, and specifically renewable penetration. In particular, we focus on the effects of introducing a set of explicit system integration constraints in a model, WITCH, characterized by a Constant Elasticity of Substitution (CES) framework.","PeriodicalId":204209,"journal":{"name":"SRPN: Energy Politics (Topic)","volume":"10 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2016-01-19","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"133092625","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}