Optimal Electricity Tariffs under High Share of Self-suppliers

• Thesis title in English: Optimal Electricity Tariffs under High Share of Self-suppliers
• English key words: Electricity tariffs, prosumers, RES
• Academic year of topic announcement: 2016/2017
• Thesis type: Bachelor's thesis
• Thesis language: angličtina
• Department: Institute of Economic Studies (23-IES)
• Supervisor: Mgr. Lukáš Rečka, Ph.D.
• Author: hidden - assigned by the advisor
• Date of registration: 09.11.2016
• Date of assignment: 09.11.2016

References

Borenstein, S., Holland, S., 2005. On the Efficiency of Competitive Electricity Markets with TimeInvariant Retail Prices. RAND Journal of Economics, Vol. 36, No. 3, pages 469-493.

Borenstein, S., 2005. The Long-Run Efficiency of Real-Time Electricity Pricing. The Energy Journal, Vol. 26., No. 3 (April), pages 93-116.

Borenstein, S., 2007. Wealth transfers among large customers from implementing real-time retail electricity pricing. Energy Journal, 28(2), pp.131–149.

Borenstein, S., 2007. Customer risk from real-time retail electricity pricing: Bill volatility and hedgability. Energy Journal, 28(2), pp.111–130.

Brown, T., Faruqui, A., Grausz,L., 2015. Efficient tariff structures for distribution network services, Economic Analysis and Policy, Volume 48, December 2015, pp. 139-149

Picciariello, A., Vergara, C., Javier Reneses, J., Frías, P., Söder,L. 2015. Electricity distribution tariffs and distributed generation: Quantifying cross-subsidies from consumers to prosumers, Utilities Policy, Volume 37, pp. 23-33

Romero-Jordán,D., del Río, P., Peñasco,C. 2016. An analysis of the welfare and distributive implications of factors influencing household electricity consumption, Energy Policy, Volume 88, January 2016, pp. 361-370


Simshauser, P., 2016. Distribution network prices and solar PV: Resolving rate instability and wealth transfers through demand tariffs, Energy Economics, Volume 54, 2016, pp. 108-122

Yoshihiro Yamamoto,. 2012. Pricing electricity from residential photovoltaic systems: A comparison of feed-in tariffs, net metering, and net purchase and sale, Solar Energy, Volume 86, Issue 9, pp. 2678-2685,

Preliminary scope of work in English

Research question and motivation
The growing share of renewable energy sources and self-suppliers in the system is changing energy markets, which raises questions about optimal electricity tariffs as reflected by the attempt of the Energy Regulatory Office (ERO) to introduce new tariffs in 2016.
The aim of this thesis is to propose possible electricity tariffs suitable for the Czech Republic reflecting the need for incorporation of an increasing share of self-suppliers in the system in the long run. The thesis will provide welfare and distribution analysis of proposed tariffs.

Contribution
The thesis will show possible changes in the near future on the electricity market due to new and altered tariffs. It will also show impact of these changes on welfare and distribution. Furthermore, ERO and energy suppliers might use proposed tariffs as a hint for adjusting their tariff settings in response to changes of energy sources and growing number of self-suppliers.

Methodology
The electricity tariffs will be constructed similarly as in Brown et al. (2015) using simple tariff design model constructed on a set of parameters describing network usage across a small number of prototypical customers and hypothetical network costs. Standard welfare and distribution analysis will be provided based on Romero-Jordán et al. 2016 using methods such as Quantile Regression, Equivalent Variation and others.

Outline
Introrduction
Literature review
Electricity tariffs and its reforms in Europe
Welfare and distribution analysis
Methodology
Optimal electricity tariffs
Welfare and distribution analysis
Conclusion and policy recommendation