Econometric Estimation of a Cost Function of the Power Distribution Grid
Paper number
1870Conference name
CIRED 2019Conference date
3-6 June 2019Conference location
Madrid, SpainPeer-reviewed
YesMetadata
Show full item recordAuthors
Bordigoni, Mathieu, Enedis, FranceGilotte, Laurent, Enedis, France
Abstract
Most economic analyses on efficient pricing for the electricity grid use strong assumptions on the cost function; often assuming that network costs are fixed. However, estimated tariff consequences on the network and users still remain highly dependent on initial hypotheses; even if sensitivity studies are carried out more and more frequently.Inversely, most investment decisions by Distribution System Operators (DSO) are performed on a case-by-case basis; due to local planning constraints such as:- Diversity of local situations (topography, in-place technology, local requirements)- Incremental putty-clay character of grid investments (historical path dependence)- Uncertainties on demand (climatic variation, changes in electricity demand, etc.)In this paper, we present a comprehensive econometric analysis of the total stock of network equipment in France - by local area - in relation to local consumption patterns and to the geographical spread of users. The issue is to identify costs associated with the different services provided by the distribution grid: (1) network access, (2) subscribed capacity (kW) and (3) energy volume (kWh). By explaining long run networks costs with customers demand for network services, we provide a new and robust foundation for future work on distribution tariffs.Publisher
AIMDate
2019-06-03Published in
Permanent link to this record
https://cired-repository.org/handle/20.500.12455/619http://dx.doi.org/10.34890/843