Abstract
The economic efficiency of two-part retail electricity tariffs in the presence of renewable resources in the distribution system is analyzed. Two integration models are considered: (i) a centralized model involving a regulated retail utility who owns the resources as part of its generation portfolio, and (ii) a decentralized model in which each consumer individually owns and operates the resources behind the meter and is capable of selling surplus electricity back to the retailer in a netmetering setting. The structure of the optimal two-part tariffs is obtained. For both integration models, it is shown that, under two-part tariffs, renewable resources generally improve efficiency and consumer surplus. In contrast, under linear tariffs, the integration of renewable resources by consumers may lower both consumer surplus and social welfare.
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
