Abstract

In the context of increasing decentralised electricity generation, this paper evaluates the effect of different regulatory frameworks on the evolution of distribution networks. This problem is addressed by means of agent based modelling in which the interactions between the agents of a distribution network and an environment are described. The consumers and the distribution system operator are the agents, which act in an environment that is composed by a set of rules. For a given environment, we can simulate the evolution of the distribution network by computing the actions of the agents at every time step of a discrete time dynamical system. We assume the electricity consumers are rational agents that may deploy distributed energy installations. The deployment of such installations may alter the remuneration mechanism of the distribution system operator. By modelling this mechanism, we may compute the evolution of the electricity distribution tariff in response to the deployment of distributed generation.

Highlights

  • One of the primary enablers of the energy transition is the widespread growth in the integration of distributed energy resources (DER) into the electricity mix [1]

  • Along with the incentive mechanisms, there are several indirect key drivers of DER deployment. Two such drivers are the distribution tariff design, and the technology costs. Regarding the former, they are typically regulated by the incumbent regulatory authority, which can be regional or national

  • We introduce the concept of environment as the container of the set of rules that characterise the distribution network, namely the tariff design, the incentive mechanism, and the technology costs

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Summary

Introduction

One of the primary enablers of the energy transition is the widespread growth in the integration of distributed energy resources (DER) into the electricity mix [1] For this reason, distributed generating technologies as, for example, solar photovoltaic (PV), have been (and are being) globally stimulated by means of policies and directives in order to foster their deployment As for the technology costs, over the last few years, these have been decreasing, and, according to the projections, they may still progressively decrease during the coming decade, owing to economy of scales and technological maturity [3] All these factors combined and, in particular, the widespread use of incentive mechanisms, have contributed to a substantial deployment of DER; such a DER integration might conceal the potential to Energies 2019, 12, 1203; doi:10.3390/en12071203 www.mdpi.com/journal/energies

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