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Current State of Deployment

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The Future of Electricity Retailing and How We Get There

Part of the book series: Lecture Notes in Energy ((LNEN,volume 41))

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Abstract

In this chapter, we survey the extent of deployment of the major technologies impacting the retail electricity sector. Interval metering is the crucial enabling technology surveyed. Distributed solar is the major disruptive technology to the existing electricity retailing business model. Dynamic pricing is enabled by the deployment of interval metering, so we survey the current penetration of dynamic pricing plans, as well as other approaches to active demand-side participation in the wholesale market. Finally, we survey the current state of regulatory rules that allow third-party access to the distribution network.

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Notes

  1. 1.

    Unless otherwise noted, we include the District of Columbia in references to the states.

  2. 2.

    Arizona and Georgia reached 100% penetration in previous years but fell behind by 2018 with Arizona at 23% and Georgia at only 10%.

  3. 3.

    SGIG award data are from https://www.energy.gov/oe/information-center/recovery-act-smart-grid-investment-grant-sgig-program.

  4. 4.

    The 2009 Electricity Directive can be found here: https://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=CELEX:32009L0072&from=EN.

  5. 5.

    The recast Electricity Directive can be found here: https://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=CELEX:32019L0944&from=EN.

  6. 6.

    The Federal Electric Commission or Comisión Federal de Electricidad is the state-owned electric utility in Mexico.

  7. 7.

    DSIRE’s map of net metering policy adoption in the U.S. can be found at https://ncsolarcen-prod.s3.amazonaws.com/wp-content/uploads/2020/06/DSIRE_Net_Metering_June2020.pdf. The figure, which was last updated in June of 2020, details the statewide net metering policies that have been adopted across the U.S. The figure indicates that 40 states and Washington, D.C. currently have statewide net metering policies, but that five of these states are transitioning towards other types of distributed generation compensation rules. The differences in these types of policies are largely attributable to different compensation rates for customers selling energy into the grid (e.g., avoided cost rates).

  8. 8.

    For more on third-party ownership of distributed solar PV systems, see https://www.epa.gov/repowertoolbox/understanding-third-party-ownership-financing-structures-renewable-energy.

  9. 9.

    EIA defines utility-scale installations to be those that are over 1 MW in capacity and are connected to the high-voltage grid. See https://www.eia.gov/electricity/data/eia860/.

  10. 10.

    We omit utility-scale capacity that is part of a net-metering program from these calculations.

  11. 11.

    See Directive (EU) 2018/2001 at https://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=CELEX:32018L2001&from=EN.

  12. 12.

    These ‘small-scale’ PV systems must be smaller than 100 kW in capacity and produce fewer than 250 MWh per year in order to qualify.

  13. 13.

    For the latest information on these rates visit https://www.mysolarquotes.co.nz/about-solar-power/residential/solar-power-buy-back-rates-nz/.

  14. 14.

    This piece of legislation is the Act on Special Measures Concerning Procurement of Electricity from Renewable Energy Sources by Electricity Utilities. The Act went into effect in 2012.

  15. 15.

    Normative Resolution No. 482, of April 17, 2012 (Updated in 2015) http://www2.aneel.gov.br/cedoc/bren2012482.pdf.

  16. 16.

    See Chap. 3, Article 6, Sect. 1 of the resolution.

  17. 17.

    Data accessed on January 23, 2020. Solar PV is denoted as UFV. See http://www2.aneel.gov.br/scg/gd/GD_Fonte.asp. It is unclear when the data was last updated but EIA reported on it in November 2019 at which time there were only about 1.57 GW of distributed solar capacity (https://www.eia.gov/todayinenergy/detail.php?id=42035).

  18. 18.

    See https://hourlypricing.comed.com/live-prices/.

  19. 19.

    These utility counts do not include short form respondents. See the appendix for more information.

  20. 20.

    Eversource was previously called Connecticut Light and Power Company. See https://www.eversource.com/clp/vpp/vpp.aspx.

  21. 21.

    Eversource’s VPP rider does not discuss in detail how these prices are determined, stating only that “replaces the fixed, monthly on-peak Generation Service charge from the Company’s TOD rates with a rate that varies daily according to the energy market.”.

  22. 22.

    See SDG&E’s plan at https://www.sdge.com/businesses/savings-center/energy-management-programs/demand-response/critical-peak-pricing.

  23. 23.

    See https://www.esc.vic.gov.au/electricity-and-gas/prices-tariffs-and-benchmarks/victorian-default-offer.

  24. 24.

    See more about Mexico’s current rate schemes at https://app.cfe.mx/Aplicaciones/CCFE/Tarifas/TarifasCRENegocio/Negocio.aspx.

  25. 25.

    More information about Brazil’s flexible tariff (called the White Tariff) is available at https://www.aneel.gov.br/tarifa-branca.

  26. 26.

    For a brief overview of the differences between demand response and demand-side management, see http://project-respond.eu/demand-side-management-vs-demand-response/.

  27. 27.

    See the details of SCE’s “Summer Discount” plan at https://www.sce.com/residential/rebates-savings/summer-discount-plan.

  28. 28.

    SCE’s definition of Connected Tonnage: “Connected Tonnage is determined by dividing the central air conditioning unit’s power (in watts) by a conversion factor of 1400 W/ton, and multiplying by the Power Factor, then adding 0.09 for rounding purposes. The central air conditioning unit’s power is determined by multiplying the voltage (VOLT) and electric current (amperage or AMP) based on the information on the faceplate of the central air conditioning unit.” See: https://library.sce.com/content/dam/sce-doclib/public/regulatory/tariff/electric/schedules/residential-rates/ELECTRIC_SCHEDULES_D-SDP.pdf.

  29. 29.

    SCE estimates that these savings can accumulate to between $35 and $140 per year.

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Authors and Affiliations

  1. Program on Energy and Sustainable Development, and Department of Economics, Stanford University, Stanford, CA, USA

    Frank A. Wolak

  2. Program on Energy and Sustainable Development, Stanford University, Stanford, CA, USA

    Ian H. Hardman

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  1. Frank A. Wolak
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  2. Ian H. Hardman
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Correspondence to Frank A. Wolak .

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Wolak, F.A., Hardman, I.H. (2022). Current State of Deployment. In: The Future of Electricity Retailing and How We Get There . Lecture Notes in Energy, vol 41. Springer, Cham. https://doi.org/10.1007/978-3-030-85005-0_5

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  • DOI: https://doi.org/10.1007/978-3-030-85005-0_5

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