Econometric Estimation of a Cost Function of the Power Distribution Grid

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dc.contributor.affiliationEnedis
dc.contributor.affiliationEnedis
dc.contributor.authorBordigoni, Mathieu
dc.contributor.authorGilotte, Laurent
dc.contributor.countryFrance
dc.contributor.countryFrance
dc.contributor.detailedauthorBordigoni, Mathieu, Enedis, France
dc.contributor.detailedauthorGilotte, Laurent, Enedis, France
dc.date.accessioned2019-07-24T12:45:27Z
dc.date.available2019-07-24T12:45:27Z
dc.date.conferencedate3-6 June 2019
dc.date.issued2019-06-03
dc.description.abstractMost 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.
dc.description.conferencelocationMadrid, Spain
dc.description.conferencenameCIRED 2019
dc.description.openaccessYes
dc.description.peerreviewedYes
dc.description.sessionDSO business environment enabling digitalization and energy transition
dc.description.sessionidSession 6
dc.identifier.isbn978-2-9602415-0-1
dc.identifier.issn2032-9644
dc.identifier.urihttps://cired-repository.org/handle/20.500.12455/619
dc.identifier.urihttp://dx.doi.org/10.34890/843
dc.language.isoen
dc.publisherAIM
dc.relation.ispartProc. of the 25th International Conference on Electricity Distribution (CIRED 2019)
dc.relation.ispartofseriesCIRED Conference Proceedings
dc.titleEconometric Estimation of a Cost Function of the Power Distribution Grid
dc.title.number1870
dc.typeConference Proceedings
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