The economic impact of electricity losses

Although electricity losses constitute an important, but inevitable, amount of wasted resources (and a portion that has to be funded), they remain one of the lesser known components of an electricity system, and this despite the fact that the decisions of generators, transmission and distribution sy...

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Authors: Costa, M. Teresa (Maria Teresa), 1951-, Davi-Arderius, Daniel, Trujillo-Baute, Elisa
Format: article
Status:Versión aceptada para publicación
Publication Date:2018
Country:España
Institution:Universidad de Barcelona
Repository:Dipòsit Digital de la UB
OAI Identifier:oai:diposit.ub.edu:2445/127163
Online Access:https://hdl.handle.net/2445/127163
Access Level:Open access
Keyword:Energia elèctrica
Estalvi d'energia
Fonts d'energia
Electric power
Energy conservation
Power resources
id ES_1142e285c32d01ec70d00d20bc240d75
oai_identifier_str oai:diposit.ub.edu:2445/127163
network_acronym_str ES
network_name_str España
repository_id_str
spelling The economic impact of electricity lossesCosta, M. Teresa (Maria Teresa), 1951-Davi-Arderius, DanielTrujillo-Baute, ElisaEnergia elèctricaEstalvi d'energiaFonts d'energiaElectric powerEnergy conservationPower resourcesAlthough electricity losses constitute an important, but inevitable, amount of wasted resources (and a portion that has to be funded), they remain one of the lesser known components of an electricity system, and this despite the fact that the decisions of generators, transmission and distribution system operators and consumers all impact on them. In this paper we analyse the effects of such losses from two perspectives: from that of consumption and from that of generation. Given that end-user consumption varies across the day, consumption has direct implications for electricity losses. Indeed, demand-side management policies seek to encourage consumers to use less energy during peak hours and to reduce network congestion. At the same time, from the perspective of generation, the recent growth in distributed generation has modified the traditional, unidirectional, downward flows in electricity systems. This affects losses as energy is produced in the lower voltage network, which is closer to points of consumption. In this paper we evaluate the impact of consumption patterns and different generation technologies on the energy losses and the cost of losses. To do so, we draw on data from a real electricity system with a high level of renewable penetration, namely, that of Spain between 2011 and 2013. To the best of our knowledge, this is the first paper to analyse the real impact of consumption and the effect of each generation technology on energy losses, offering an opportunity to evaluate the potential benefits of demand-side management policies and distributed generation. Losses are divided between transmission and distribution levels, which is also a novelty that allows us to better define our regulatory recommendations aimed at exploiting to the full these potential benefits. Our results should serve as a baseline for countries at the early stages of implementing these policies.Elsevier Ltd2018info:eu-repo/semantics/articleinfo:eu-repo/semantics/acceptedVersionapplication/pdfhttps://hdl.handle.net/2445/127163Articles publicats en revistes (Economia)reponame:Dipòsit Digital de la UBinstname:Universidad de BarcelonaInglésVersió postprint del document publicat a: https://doi.org/10.1016/j.eneco.2018.08.006Energy Economics, 2018, vol. 75, num. September, p. 309-322https://doi.org/10.1016/j.eneco.2018.08.006cc-by-nc-nd (c) Elsevier Ltd, 2018http://creativecommons.org/licenses/by-nc-nd/3.0/esinfo:eu-repo/semantics/openAccessoai:diposit.ub.edu:2445/1271632026-05-27T06:46:51Z
dc.title.none.fl_str_mv The economic impact of electricity losses
title The economic impact of electricity losses
spellingShingle The economic impact of electricity losses
Costa, M. Teresa (Maria Teresa), 1951-
Energia elèctrica
Estalvi d'energia
Fonts d'energia
Electric power
Energy conservation
Power resources
title_short The economic impact of electricity losses
title_full The economic impact of electricity losses
title_fullStr The economic impact of electricity losses
title_full_unstemmed The economic impact of electricity losses
title_sort The economic impact of electricity losses
dc.creator.none.fl_str_mv Costa, M. Teresa (Maria Teresa), 1951-
Davi-Arderius, Daniel
Trujillo-Baute, Elisa
author Costa, M. Teresa (Maria Teresa), 1951-
author_facet Costa, M. Teresa (Maria Teresa), 1951-
Davi-Arderius, Daniel
Trujillo-Baute, Elisa
author_role author
author2 Davi-Arderius, Daniel
Trujillo-Baute, Elisa
author2_role author
author
dc.subject.none.fl_str_mv Energia elèctrica
Estalvi d'energia
Fonts d'energia
Electric power
Energy conservation
Power resources
topic Energia elèctrica
Estalvi d'energia
Fonts d'energia
Electric power
Energy conservation
Power resources
description Although electricity losses constitute an important, but inevitable, amount of wasted resources (and a portion that has to be funded), they remain one of the lesser known components of an electricity system, and this despite the fact that the decisions of generators, transmission and distribution system operators and consumers all impact on them. In this paper we analyse the effects of such losses from two perspectives: from that of consumption and from that of generation. Given that end-user consumption varies across the day, consumption has direct implications for electricity losses. Indeed, demand-side management policies seek to encourage consumers to use less energy during peak hours and to reduce network congestion. At the same time, from the perspective of generation, the recent growth in distributed generation has modified the traditional, unidirectional, downward flows in electricity systems. This affects losses as energy is produced in the lower voltage network, which is closer to points of consumption. In this paper we evaluate the impact of consumption patterns and different generation technologies on the energy losses and the cost of losses. To do so, we draw on data from a real electricity system with a high level of renewable penetration, namely, that of Spain between 2011 and 2013. To the best of our knowledge, this is the first paper to analyse the real impact of consumption and the effect of each generation technology on energy losses, offering an opportunity to evaluate the potential benefits of demand-side management policies and distributed generation. Losses are divided between transmission and distribution levels, which is also a novelty that allows us to better define our regulatory recommendations aimed at exploiting to the full these potential benefits. Our results should serve as a baseline for countries at the early stages of implementing these policies.
publishDate 2018
dc.date.none.fl_str_mv 2018
dc.type.none.fl_str_mv info:eu-repo/semantics/article
info:eu-repo/semantics/acceptedVersion
format article
status_str acceptedVersion
dc.identifier.none.fl_str_mv https://hdl.handle.net/2445/127163
url https://hdl.handle.net/2445/127163
dc.language.none.fl_str_mv Inglés
language_invalid_str_mv Inglés
dc.relation.none.fl_str_mv Versió postprint del document publicat a: https://doi.org/10.1016/j.eneco.2018.08.006
Energy Economics, 2018, vol. 75, num. September, p. 309-322
https://doi.org/10.1016/j.eneco.2018.08.006
dc.rights.none.fl_str_mv cc-by-nc-nd (c) Elsevier Ltd, 2018
http://creativecommons.org/licenses/by-nc-nd/3.0/es
info:eu-repo/semantics/openAccess
rights_invalid_str_mv cc-by-nc-nd (c) Elsevier Ltd, 2018
http://creativecommons.org/licenses/by-nc-nd/3.0/es
eu_rights_str_mv openAccess
dc.format.none.fl_str_mv application/pdf
dc.publisher.none.fl_str_mv Elsevier Ltd
publisher.none.fl_str_mv Elsevier Ltd
dc.source.none.fl_str_mv Articles publicats en revistes (Economia)
reponame:Dipòsit Digital de la UB
instname:Universidad de Barcelona
instname_str Universidad de Barcelona
reponame_str Dipòsit Digital de la UB
collection Dipòsit Digital de la UB
repository.name.fl_str_mv
repository.mail.fl_str_mv
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