Designing Taxes and Tariffs for Electricity Systems with Complex Flexible Actors

Felipe Junqueira Fausto, Philipp Andreas Gunkel, Klaus Skytte, Claire Bergaentzlé*, Russell McKenna

*Corresponding author for this work

Research output: Chapter in Book/Report/Conference proceedingArticle in proceedingsResearchpeer-review

Abstract

With new technologies blurring the line between generation and consumption in the electricity market, regulation must be re-thought to adequately deal with increasingly complex flexible actors. The dissemination of distributed energy resources and the consequent rise in the elasticity of demand increase the pres-sure to reform distortive regulation. This paper develops grid tariffs and consumption taxes for the electricity market based on the advice of economic theory in order to preserve the incentives for flexible and grid-friendly behaviour, which will be crucial in future energy systems. This not only provides a guide to regulation design, but creates a benchmark against which proposed regulation can be compared.
Original languageEnglish
Title of host publicationProceedings of the EEM19 Conference; 16th International Conference on the European Energy Market
Number of pages6
Publication date2019
Publication statusPublished - 2019
Event16th International Conference on the European Energy Market - Ljubljana, Slovakia
Duration: 18 Sep 201920 Sep 2019

Conference

Conference16th International Conference on the European Energy Market
CountrySlovakia
CityLjubljana
Period18/09/201920/09/2019

Cite this

Fausto, F. J., Gunkel, P. A., Skytte, K., Bergaentzlé, C., & McKenna, R. (2019). Designing Taxes and Tariffs for Electricity Systems with Complex Flexible Actors. In Proceedings of the EEM19 Conference; 16th International Conference on the European Energy Market
Fausto, Felipe Junqueira ; Gunkel, Philipp Andreas ; Skytte, Klaus ; Bergaentzlé, Claire ; McKenna, Russell. / Designing Taxes and Tariffs for Electricity Systems with Complex Flexible Actors. Proceedings of the EEM19 Conference; 16th International Conference on the European Energy Market. 2019.
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Fausto, FJ, Gunkel, PA, Skytte, K, Bergaentzlé, C & McKenna, R 2019, Designing Taxes and Tariffs for Electricity Systems with Complex Flexible Actors. in Proceedings of the EEM19 Conference; 16th International Conference on the European Energy Market. 16th International Conference on the European Energy Market, Ljubljana, Slovakia, 18/09/2019.

Designing Taxes and Tariffs for Electricity Systems with Complex Flexible Actors. / Fausto, Felipe Junqueira; Gunkel, Philipp Andreas; Skytte, Klaus; Bergaentzlé, Claire; McKenna, Russell.

Proceedings of the EEM19 Conference; 16th International Conference on the European Energy Market. 2019.

Research output: Chapter in Book/Report/Conference proceedingArticle in proceedingsResearchpeer-review

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AB - With new technologies blurring the line between generation and consumption in the electricity market, regulation must be re-thought to adequately deal with increasingly complex flexible actors. The dissemination of distributed energy resources and the consequent rise in the elasticity of demand increase the pres-sure to reform distortive regulation. This paper develops grid tariffs and consumption taxes for the electricity market based on the advice of economic theory in order to preserve the incentives for flexible and grid-friendly behaviour, which will be crucial in future energy systems. This not only provides a guide to regulation design, but creates a benchmark against which proposed regulation can be compared.

M3 - Article in proceedings

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Fausto FJ, Gunkel PA, Skytte K, Bergaentzlé C, McKenna R. Designing Taxes and Tariffs for Electricity Systems with Complex Flexible Actors. In Proceedings of the EEM19 Conference; 16th International Conference on the European Energy Market. 2019