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1 – 10 of over 2000Ravindra R. Rathod and Rahul Dev Garg
Electricity consumption around the world and in India is continuously increasing over the years. Presently, there is a huge diversity in electricity tariffs across states in…
Abstract
Purpose
Electricity consumption around the world and in India is continuously increasing over the years. Presently, there is a huge diversity in electricity tariffs across states in India. This paper aims to focus on development of new tariff design method using K-means clustering and gap statistic.
Design/methodology/approach
Numbers of tariff plans are selected using gap-statistic for K-means clustering and regression analysis is used to deduce new tariffs from existing tariffs. The study has been carried on nearly 27,000 residential consumers from Sangli city, Maharashtra State, India.
Findings
These tariff plans are proposed with two objectives: first, possibility to shift consumer’s from existing to lower tariff plan for saving electricity and, second, to increase revenue by increasing tariff charges using Pay-by-Use policy.
Research limitations/implications
The study can be performed on hourly or daily data using automatic meter reading and to introduce Time of Use or demand based tariff.
Practical implications
The proposed study focuses on use of data mining techniques for tariff planning based on consumer’s electricity usage pattern. It will be helpful to detect abnormalities in consumption pattern as well as forecasting electricity usage.
Social implications
Consumers will be able to decide own monthly electricity consumption and related tariff leading to electricity savings, as well as high electricity consumption consumers have to pay more tariff charges for extra electricity usage.
Originality/value
To remove the disparity in various tariff plans across states and country, proposed method will help to provide a platform for designing uniform tariff for entire country based on consumer’s electricity consumption data.
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Andrii Skrypnyk, Nataliia Klymenko, Semen Voloshyn, Olha Holiachuk and Oleksandr Sabishchenko
The purpose of this paper is to develop a methodology for assessing the effects of global and regional externalities that create traditional power generation industries and to…
Abstract
Purpose
The purpose of this paper is to develop a methodology for assessing the effects of global and regional externalities that create traditional power generation industries and to propose a transition to a tariff strategy taking into account these consequences. The main purpose of the research is to analyze the current wholesale electricity tariffs in the energy market of Ukraine and propose their assessment taking into account external effects for other sectors of the economy.
Design/methodology/approach
At the first stage, according to observations for 2004–2019 on the amount of pollution and the cost of agricultural products in some regions of Ukraine, which is provided in 2010 prices, the impact of hazardous emissions on the cost of agricultural products was analyzed in each region. The use of panel regression allowed to combine spatial and temporal studies (12 separate areas and time interval 2004–2019). To assess the external effects of heat generation, panel regression was used, which made it possible to combine spatial and temporal data on the impact of pollution on the efficiency of agricultural production and add regional losses of agricultural business to the cost of heat generation. This paper uses optimization models to maximize the function of public utility of electricity generation, making allowances for externalities.
Findings
This research assesses the negative externalities of Ukraine's energy and confirms the need for a global transition to a low-carbon economy primarily through climate finance. The analysis revealed the presence of various influences of the factor of regional air pollution and time. The hypothesis of the existence of a negative impact of local air pollution on agricultural production has been confirmed. An increase in emissions by 1,000 tons leads to an average decrease in regional agricultural production by UAH 84 million (at the prices of 2010).
Originality/value
The optimization problem of the ratio of different types of generation is set on the basis of maximizing the function of social utility of electricity generation, taking into account external effects. The authors presented an optimization model of electricity generation, which corresponded to the state of the energy market for 2019, provides an opportunity to assess the contribution of the inverse external effects of each electricity sector and to estimate external tariffs for each electricity generation sector.
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Samuli Honkapuro, Jussi Tuunanen, Petri Valtonen and Jarmo Partanen
– The purpose of the paper is to analyze the development needs and opportunities in the distribution system operators’ (DSO) tariff structures in the smart-grid environment.
Abstract
Purpose
The purpose of the paper is to analyze the development needs and opportunities in the distribution system operators’ (DSO) tariff structures in the smart-grid environment.
Design/methodology/approach
The impacts of the distribution pricing schemes for the stakeholders and their requirements for the tariff structures are evaluated by qualitative analyses. Furthermore, there is a case analysis concerning the practical development possibilities of the DSO tariff structures in Finland.
Findings
Major finding of the paper is that the demand-based power band tariff is the optimal solution for the DSO pricing structure, when taking into account the real-life limitations and the requirements of the stakeholders.
Practical implications
Outcomes of the paper can be applied in practice in design of the pricing schemes in the electricity distribution. Incentive provision impacts and cost reflectivity of the DSO tariffs can be improved by implementing the suggested pricing structure.
Originality/value
The paper provides a novel viewpoint on the study of the DSO tariff design by considering the impacts of the pricing for the stakeholders and their requirements for tariff structure. Furthermore, the real-life limitations in the tariff design have been taken into account by analyzing the development options in Finland. Results are useful, especially for the DSOs, regulators and academics, who are working with the tariff development issues.
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Cláudio de Araújo Wanderley, John Cullen and Mathew Tsamenyi
The paper seeks to examine the evolution of regulatory accounting within the context of the Brazilian electricity sector reforms. The paper traces the process of the reforms and…
Abstract
Purpose
The paper seeks to examine the evolution of regulatory accounting within the context of the Brazilian electricity sector reforms. The paper traces the process of the reforms and the development of the regulatory accounting system.
Design/methodology/approach
The paper is based on data collected from various documents including those published by the regulator (such as laws, resolutions and technical notes), as well as information from distribution companies and other government agencies.
Findings
It is found that regulatory accounting played different roles under the different electricity sector reforms implemented in Brazil. For example, regulatory accounting was minimally used during the first reform, and this brought a range of problems of implementation and consolidation of the electricity sector model. However, regulatory accounting played an essential role in the regulatory framework under the second reform, and this in part contributed to addressing some of the problems of the sector.
Originality/value
This is the first study that describes and explains the Brazilian electricity sector reforms by analysing the so‐called core issues in regulatory accounting and tariff review process. The paper contributes to the literature by providing a broader picture of the interconnection between regulatory accounting and the regulator's objectives.
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Yuhan Liu, Linhong Wang, Ziling Zeng and Yiming Bie
The purpose of this study is to develop an optimization method for charging plans with the implementation of time-of-day (TOD) electricity tariff, to reduce electricity bill.
Abstract
Purpose
The purpose of this study is to develop an optimization method for charging plans with the implementation of time-of-day (TOD) electricity tariff, to reduce electricity bill.
Design/methodology/approach
Two optimization models for charging plans respectively with fixed and stochastic trip travel times are developed, to minimize the electricity costs of daily operation of an electric bus. The charging time is taken as the optimization variable. The TOD electricity tariff is considered, and the energy consumption model is developed based on real operation data. An optimal charging plan provides charging times at bus idle times in operation hours during the whole day (charging time is 0 if the bus is not get charged at idle time) which ensure the regular operation of every trip served by this bus.
Findings
The electricity costs of the bus route can be reduced by applying the optimal charging plans.
Originality/value
This paper produces a viable option for transit agencies to reduce their operation costs.
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The purpose of this paper is to focus on households' willingness to pay for electricity consumption and mitigation expenditure due to poor electricity infrastructure as a measure…
Abstract
Purpose
The purpose of this paper is to focus on households' willingness to pay for electricity consumption and mitigation expenditure due to poor electricity infrastructure as a measure of demand and tariff setting.
Design/methodology/approach
In this paper, the demand side management (DSM) approach was adopted in establishing user demand for electricity in the study area.
Findings
Based on the high cost (averting expenditure) of providing alternative power supply, households are willing to pay extra for more reliable and regular power supply.
Practical implications
The study is a deviation from the usual command or supply side management approach to infrastructure provision and management.
Originality/value
There is limited research on DSM approach to electricity infrastructure provision in Nigeria. The study will enhance the chances of cost recovery under private‐public partnership arrangement. The paper identifies that a reliable and reasonable priced electricity supply is essential for a developing country.
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Yos Sunitiyoso, Johan Prabandono Mahardi, Yudo Anggoro and Agung Wicaksono
The purpose of this paper is to apply a systems thinking methodology to analyse Indonesia’s new and renewable energy (NRE) electricity sector to describe the complex…
Abstract
Purpose
The purpose of this paper is to apply a systems thinking methodology to analyse Indonesia’s new and renewable energy (NRE) electricity sector to describe the complex interrelations between its actors and variables, identify the systemic patterns and formulate recommendations for the policymakers.
Design/methodology/approach
Systems thinking methodology is used to observe the NRE electricity system and compile the corresponding data into a meaningful diagram to describe and recommend solutions for the sector’s issues. Causal loop diagram is used as the main method in this study with a deeper analysis of system archetypes to uncover the system behaviour. Soft system methodology and critical system heuristic are used partially to clarify the system boundaries, cultivate the perspective of the involved actors and problem categorization.
Findings
A comprehensive diagram is developed to present interrelation between all the components within the NRE electricity sector in Indonesia and the expected impact of any act or change to the entire system. Based on the causal interrelations between variables, typical systemic patterns or archetypes are used to identify unproductive patterns towards achieving the NRE electricity sector objectives.
Originality/value
The findings provide an initial outlook on the variables and systemic patterns within the system as a critical consideration in the decision-making process and policy development for the NRE electricity sector.
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Minh Ha-Duong and Hoai-Son Nguyen
The authors estimate the reduction of electricity poverty in Vietnam. The essential argument is that human development is about subjective feeling as much as technology and income.
Abstract
Purpose
The authors estimate the reduction of electricity poverty in Vietnam. The essential argument is that human development is about subjective feeling as much as technology and income.
Design/methodology/approach
The authors use a self-reported satisfaction indicator as complementary to objective indicators based on national household surveys from 2008 to 2018.
Findings
In 2010, the fraction of households with access to electricity was over 96%. However, over 24% declared their electricity use did not meet their needs. Since 2014, the satisfaction rate is around 97%, even if 25% of the households used less than 50 kWh/month. Today there is electricity for all in Vietnam, but electricity bills weigh more and more in the budget of households.
Practical implications
The subjective energy poverty measure allows better international statistics: unlike poverty or needs-based criteria, self-assessed satisfaction of needs compares across income levels and climates.
Social implications
Inequalities in electricity use among Vietnamese households decreased during the 2008–2018 period, but are not greater than inequalities in income, contrary to the findings of Son and Yoon (2020).
Originality/value
Engineering and econometric objectivist approaches dominate the literature on sustainability monitoring. Out of 232 sustainable development goal (SDG) indicators, only two are subjective. Yet the findings show that subjective indicators tell a different part of the story. Access is not grid building, but the meaningful provision of electricity to satisfy the needs.
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The advent of retail deregulation (liberalisation) in the United States electricity markets provides the major energy users, for the first time, significant choice in energy…
Abstract
The advent of retail deregulation (liberalisation) in the United States electricity markets provides the major energy users, for the first time, significant choice in energy procurement. With choice comes responsibility for sorting the wide range of potential services, associated risks and variables in price. As deregulation has progressed, the emerging market has not yet reached maturity for retail customers, resulting in significant price volatility and imbalances in supply in some regions. This paper, presented in the Journal in two parts, of which this is the second, explains the fundamentals of energy choice for commercial and industrial energy users and the criteria to be considered in making long‐term energy commitments.
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Outlook for the new Delhi government's energy policy.