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