Econometric Estimation of a Cost Function of the Power Distribution Grid

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CIRED 2019 - 1870.pdf (1.11 MB)
Paper number
1870
Working Group Number
Conference name
CIRED 2019
Conference date
3-6 June 2019
Conference location
Madrid, Spain
Peer-reviewed
Yes
Short title
Convener
Authors
Bordigoni, Mathieu, Enedis, France
Gilotte, 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.
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Publisher
AIM
Date
2019-06-03
Published in
CIRED 2019 Conference
Permanent link to this record
https://cired-repository.org/handle/20.500.12455/619
http://dx.doi.org/10.34890/843
ISSN
2032-9644
ISBN
978-2-9602415-0-1