World economy and international economic relations

Economics of electricity pricing and consumer protection

Economic Annals-XXI

Economic Annals-ХХI: Volume 162, Issue 11-12, Pages: 28-31

Citation information:
Strielkowski, W., & Bilan, Yu. (2016). Economics of electricity pricing and consumer protection. Economic Annals-XXI, 162(11-12), 28-31. doi: https://doi.org/10.21003/ea.V162-06

View Full-TextDownload PDF

Wadim Strielkowski
PhD (Economics),
Research Associate,
Cambridge Judge Business School,
University of Cambridge
13 Trumpington Str., Cambridge, CB2 1AG, United Kingdom
w.strielkowski@jbs.cam.ac.uk
ORCID ID: http://orcid.org/0000-0001-6113-3841

Yuriy Bilan
D.Sc. (Economics),
Research Associate,
Centre of Applied Economic Research,
Faculty of Management and Economics,
Tomas Bata University in Zlin
5139 Mostni Str., Zlin, 760 01, Czech Republic
yuriy_bilan@yahoo.co.uk
ORCID ID: http://orcid.org/0000-0003-0268-009X

Economics of electricity pricing and consumer protection

Abstract. Consumer protection and electricity pricing issues that emerge when consumers generate their own electric power by installing solar photovoltaic (PV) panels (known as solar distributed generation, or DG) nowadays are in the centre of interest of public administration and citizens as far as it concerns energy supplies of households and new inter-relations which occur as the result of technological advance. Despite the fact that the output of a solar panel cannot be precisely predicted, the marginal cost of generating electricity from the renewable energy sources is nearly zero. This made renewable sources with the inclusion of solar panels the first choice for utility firm in fulfilling its customer’s energy demand.

We look into the economics of electricity pricing and issue of consumer protection associated with the distributed generation in the developed economies by the example of the USA. Our results might help the stakeholders and policy-makers as well as energy companies to obtain a deeper insight on this problematique. Given that the United States are dangerously affected by climate change, the use of solar renewable energy would be of great benefit in controlling the environmental hazards caused by the use of non-renewable energy on the environment. The government and other socially influential stakeholders must initiate and further participate in the public awareness campaign concerning policies, the concept of net metering and the pricing of solar products.

Keywords: Energy Economics; Electricity Pricing; Consumer Protection; Distributed Generation; Solar Photovoltaic (PV) Panels; Solar Energy; USA

JEL Classification: H20; Q20; Q42

DOI: https://doi.org/10.21003/ea.V162-06

References

  1. Kasperowicz, R. (2014). Economic growth and energy consumption in 12 European countries: A panel data approach. Journal of International Studies, 7(3), 112-122.
    doi: https://doi.org/10.14254/2071-8330.2014/7-3/10
  2. Brooks, C. (2015). The Periodic Table of the Electric Utility Landscape: A Series of Visual Tools for Enhanced Policy Analysis. The Electricity Journal, 28(6), 82-95.
    doi: https://doi.org/10.1016/j.tej.2015.06.009
  3. Kasperowicz, R., & Streimikiene, D. (2016). Economic growth and energy consumption: Comparative analysis of V4 and the «old» EU countries. Journal of International Studies, 9(2), 181-194. 
    Retrieved from https://www.researchgate.net/publication/306105900_
    Economic_growth_and_energy_consumption_comparative_analysis_of_V4_and_old_EU_countries
  4. Oliva, S., MacGill, I., & Passey, R. (2016). Assessing the short-term revenue impacts of residential PV systems on electricity customers, retailers and network service providers. Renewable and Sustainable Energy Reviews, 54, 1494-1505.
    doi: https://doi.org/10.1016/j.rser.2015.10.094
  5. Hess, D. J. (2016). The politics of niche-regime conflicts: Distributed solar energy in the United States. Environmental Innovation and Societal Transitions, 19, 42-50.
    doi: https://doi.org/10.1016/j.eist.2015.09.002
  6. Pool, R. (2012). Solar power: the unexpected side-effect. Engineering & Technology, 7(3), 76-78. Retrieved from:
    doi: https://doi.org/10.1049/et.2012.0312
  7. Thakur, J., & Chakraborty, B. (2016). Sustainable Net Metering Model for Diversified India. Energy Procedia, 88, 336-340.
    doi: https://doi.org/10.1016/j.egypro.2016.06.139
  8. Picciariello, A., Reneses, J., Frias, P., & Soder, L. (2015). Distributed generation and distribution pricing: Why do we need new tariff design methodologies? Electric Power Systems Research, 119, 370-376.
    Retrieved from http://www.sciencedirect.com/science/article/pii/S0378779614003927
  9. Kildegaard, A., & Wente, J. (2015). An optimization approach to parallel generation solar PV investments in the US: Two applications illustrate the case for tariff reform. Energy Policy, 87, 295-302.
    doi: https://doi.org/10.1016/j.enpol.2015.09.011
  10. Nikolaidis, A. I., Milidonis, A., & Charalambous, C. A. (2015). Impact of fuel-dependent electricity retail charges on the value of net-metered PV applications in vertically integrated systems. Energy Policy, 79, 150-160.
    doi: https://doi.org/10.1016/j.enpol.2015.01.010
  11. Marques, C. P., & Almeida, D. (2013). A path model of attitudinal antecedents of green purchase behaviour. Economics and Sociology, 6(2), 135-144.
    doi: https://doi.org/10.14254/2071-789X.2013/6-2/12
  12. Urbaniec, M. (2015). Towards sustainable development through ecoinnovations: Drivers and barriers in Poland. Economics and Sociology, 8(4), 179-190.
    doi: https://doi.org/10.14254/2071-789X.2015/8-4/13
  13. Lisell, L., & Mosey, G. (2010). Feasibility study of economics and performance of solar photovoltaics in Nitro, West Virginia. Technical Report No. NREL/TP-6A2-48594. National Renewable Energy Laboratory. Golden, Colorado.
    Retrieved from http://www.nrel.gov/docs/fy10osti/48594.pdf
  14. Deline, C., Marion, B., Granata, J., & Gonzalez, S. (2011). A performance and economic analysis of distributed power electronics in photovoltaic systems, Technical Report No. NREL/TP-5200-50003. National Renewable Energy Laboratory. Golden, Colorado.
    Retrieved from http://www.nrel.gov/docs/fy11osti/50003.pdf
  15. Li, H., & Yi, H. (2014). Multilevel governance and deployment of solar PV panels in U.S. cities. Energy Policy, 69, 19-27.
    doi: https://doi.org/10.1016/j.enpol.2014.03.006
  16. Federal Trade Commission (2016). Solar power at your home.
    Retrieved from https://www.consumer.ftc.gov/articles/0532-solar-power-your-home
  17. Shrimali, G., & Jenner, S. (2013). The impact of state policy on deployment and cost of solar photovoltaic technology in the U.S.: A sector-specific empirical analysis. Renewable Energy, 60, 679-690.
    doi: https://doi.org/10.1016/j.renene.2013.06.023
  18. U.S. Department of Energy (2014). Photovoltaic Systems Pricing Trends.
    Retrieved from http://www.nrel.gov/docs/fy14osti/62558.pdf
  19. American Public Power Association (2013). Distributed Generation: An Overview of Recent Policy and Market Developments. NW: Washington.
    Retrieved from https://www.hks.harvard.edu/hepg/Papers/2013/
    APPA%20Distributed%20Generation%20Paper%2011%2013%20Final.pdf
  20. Energy Information Administration (2016). Electricity data.
    Retrieved from https://www.eia.gov/electricity/monthly/epm_table_grapher.cfm?t=epmt_5_6_a
  21. Kettles, C. M. (2008). A Comprehensive Review of Solar Access Law in the United States. Florida Solar Energy Research and Education Foundation. Solar America Board for Codes and Standards Report.
    Retrieved from http://www.solarabcs.org/about/publications/reports/solar-access/pdfs/Solaraccess-full.pdf
  22. Duke, J. M., & Attia, B. (2015). Negotiated Solar Rights Conflict Resolution: A Comparative Institutional Analysis of Public and Private Processes. Journal of Environmental and Sustainability Law, 22(1), 1-57.
  23. Sterling, J., McLaren, J., Taylor, M., & Cory, K. (2013). Treatment of Solar Generation in Electricity Utility Resource Planning. Technical Report NREL/TP-6A20-60047. National Renewable Energy Laboratory. Golden, Colorado.
    Retrieved from http://www.nrel.gov/docs/fy14osti/60047.pdf
  24. Bolinger, M., Weaver, S., & Zuboy, J. (2015). Is $50/MWh solar for real? Falling project prices and rising capacity factors drive utility-scale PV toward economic competitiveness. Progress in Photovoltaics: Research and Applications, 23(12), 1847-1856.
    doi: https://doi.org/10.1002/pip.2630
  25. Abdmouleh, Z., Alammari, R. A., & Gastli, A. (2015). Review of policies encouraging renewable energy integration & best practices. Renewable and Sustainable Energy Reviews, 45, 249-262.
    doi: https://doi.org/10.1016/j.rser.2015.01.035
  26. Kok, A., G., Shang, K., & Yucel, S. (2015). Impact of Electricity Pricing Policies on Renewable Energy Investments and Carbon Emissions.
    doi: https://doi.org/10.1287/mnsc.2016.2576

Received 26.09.2016

View Full-TextDownload PDF
In, , , , , ,

More Papers