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    Econometric Estimation of a Cost Function of the Power Distribution Grid

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    CIRED 2019 - 1870.pdf (1.111Mb)
    Paper number
    1870
    Conference name
    CIRED 2019
    Conference date
    3-6 June 2019
    Conference location
    Madrid, Spain
    Peer-reviewed
    Yes
    Metadata
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    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.
    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

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