Business structure of electricity distribution system operator and effect on solar photovoltaic uptake: An empirical case study for Switzerland

Abstract

Distribution System Operators are responsible for overseeing the connection of distributed energy sources, such as solar photovoltaic, to the low voltage electricity grid. While solar PV could contribute significantly to the decarbonization of the electricity supply, the technology's proliferation is not necessarily aligned with the business objectives of the Distribution System Operators. We conduct a statistical analysis to test whether solar photovoltaic in Switzerland is affected by the business model of the local Distribution System Operator. Our results indicate that the technology uptake patterns differ according to the business model despite a non-discriminatory connection policy. We conclude that Swiss policymakers provide additional support for solar photovoltaic in areas served by limited companies, due to their energy-generating potential, as well as those served by local municipalities, to achieve more consistent adoption rates. The findings of our work support future organizational studies of individual Distribution System Operators and comparisons to other jurisdictions with multiple Distribution System Operators of varying business models.