Increasing penetration of renewable and distributed electricity generation and the need for different network regulation

• Published in: Energy policy Vol. 37; no. 8; pp. 2907 - 2915
• Main Authors: de Joode, J., Jansen, J.C., van der Welle, A.J., Scheepers, M.J.J.
• Format: Journal Article
• Language: English
• Published: Kidlington Elsevier Ltd 01-08-2009; Elsevier; Elsevier Science Ltd
• Series: Energy Policy
• Subjects: adaptability; Alternative energy; Applied sciences; Cost-benefit analysis; Decentralization; Distributed generation (DG); Distributed generation (DG) Distribution system operator (DSO) Network regulation; Distribution system operator (DSO); Economic data; Economic regulation; Electric energy; Electricity; Electricity generation; Energy; Energy economics; Energy industry; Energy policy; Exact sciences and technology; General, economic and professional studies; Impact analysis; Network industries; Network regulation; Q1; Renewable energy sources; Studies; Technology; Europe; Distribution system operator (DSO); Distributed generation (DG); Network regulation; Operator; Electric energy transportation; Network management; Distributed system; Market penetration; European Union; Profit; Economic impact; Regulation policy; Electric power production; Cost analysis
• ISSN: 0301-4215; 1873-6777
• DOI: 10.1016/j.enpol.2009.03.014

The amount of decentralised electricity generation (DG) connected to distribution networks increases across EU member states. This increasing penetration of DG units poses potential costs and benefits for distribution system operators (DSOs). These DSOs are regulated since the business of electricity distribution is considered to be a natural monopoly. This paper identifies the impact of increasing DG penetration on the DSO business under varying parameters (network characteristics, DG technologies, network management type) and argues that current distribution network regulation needs to be improved in order for DSOs to continue to facilitate the integration of DG in the network. Several possible adaptations are analysed.