Analyzing Supply Reliability Incentive in Pricing Regulation of Electricity Distribution Operators
In support of the global green transition, numerous policies have been introduced to efficiently address the increasing demand for reliable electricity. However, the impacts of these policies have received limited attention, despite the potential for unsuccessful policy targets to introduce ineffici...
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| Format: | Article |
| Language: | English |
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MDPI AG
2024-03-01
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| Series: | Energies |
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| Online Access: | https://www.mdpi.com/1996-1073/17/6/1451 |
| _version_ | 1797241273648676864 |
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| author | Joel Seppälä Pertti Järventausta |
| author_facet | Joel Seppälä Pertti Järventausta |
| author_sort | Joel Seppälä |
| collection | DOAJ |
| description | In support of the global green transition, numerous policies have been introduced to efficiently address the increasing demand for reliable electricity. However, the impacts of these policies have received limited attention, despite the potential for unsuccessful policy targets to introduce inefficiencies into the energy system, subsequently diminishing societal wealth. This study bridges this research gap by conducting a comprehensive examination of a supply reliability incentive within electricity pricing regulation, aiming to contribute new insights for policy assessments. Analyzing data from all electricity distribution operators within a single jurisdiction, the study investigates the volume and distribution of economic steering to elucidate the overall societal impact. The findings suggest a rewarding system for positive developments in indices, regardless of the absolute interruption index levels, highlighting the importance of precise variable definitions in implementing incentive mechanisms. The assessment tools developed for this study will be valuable for further regulation and policy assessments. |
| first_indexed | 2024-04-24T18:20:43Z |
| format | Article |
| id | doaj.art-ddc6f39d25ce49e882791f88cf079626 |
| institution | Directory Open Access Journal |
| issn | 1996-1073 |
| language | English |
| last_indexed | 2024-04-24T18:20:43Z |
| publishDate | 2024-03-01 |
| publisher | MDPI AG |
| record_format | Article |
| series | Energies |
| spelling | doaj.art-ddc6f39d25ce49e882791f88cf0796262024-03-27T13:35:47ZengMDPI AGEnergies1996-10732024-03-01176145110.3390/en17061451Analyzing Supply Reliability Incentive in Pricing Regulation of Electricity Distribution OperatorsJoel Seppälä0Pertti Järventausta1Unit of Electrical Engineering, Tampere University, Korkeakoulunkatu 7, FI-33720 Tampere, FinlandUnit of Electrical Engineering, Tampere University, Korkeakoulunkatu 7, FI-33720 Tampere, FinlandIn support of the global green transition, numerous policies have been introduced to efficiently address the increasing demand for reliable electricity. However, the impacts of these policies have received limited attention, despite the potential for unsuccessful policy targets to introduce inefficiencies into the energy system, subsequently diminishing societal wealth. This study bridges this research gap by conducting a comprehensive examination of a supply reliability incentive within electricity pricing regulation, aiming to contribute new insights for policy assessments. Analyzing data from all electricity distribution operators within a single jurisdiction, the study investigates the volume and distribution of economic steering to elucidate the overall societal impact. The findings suggest a rewarding system for positive developments in indices, regardless of the absolute interruption index levels, highlighting the importance of precise variable definitions in implementing incentive mechanisms. The assessment tools developed for this study will be valuable for further regulation and policy assessments.https://www.mdpi.com/1996-1073/17/6/1451electricity distributioneconomic regulationsecurity of supplyclustering |
| spellingShingle | Joel Seppälä Pertti Järventausta Analyzing Supply Reliability Incentive in Pricing Regulation of Electricity Distribution Operators Energies electricity distribution economic regulation security of supply clustering |
| title | Analyzing Supply Reliability Incentive in Pricing Regulation of Electricity Distribution Operators |
| title_full | Analyzing Supply Reliability Incentive in Pricing Regulation of Electricity Distribution Operators |
| title_fullStr | Analyzing Supply Reliability Incentive in Pricing Regulation of Electricity Distribution Operators |
| title_full_unstemmed | Analyzing Supply Reliability Incentive in Pricing Regulation of Electricity Distribution Operators |
| title_short | Analyzing Supply Reliability Incentive in Pricing Regulation of Electricity Distribution Operators |
| title_sort | analyzing supply reliability incentive in pricing regulation of electricity distribution operators |
| topic | electricity distribution economic regulation security of supply clustering |
| url | https://www.mdpi.com/1996-1073/17/6/1451 |
| work_keys_str_mv | AT joelseppala analyzingsupplyreliabilityincentiveinpricingregulationofelectricitydistributionoperators AT perttijarventausta analyzingsupplyreliabilityincentiveinpricingregulationofelectricitydistributionoperators |