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Distributed generation, storage, demand response, and energy efficiency as alternatives to grid capacity enhancement.

Poudineh, R. and Jamasb, T. (2014) 'Distributed generation, storage, demand response, and energy efficiency as alternatives to grid capacity enhancement.', Energy policy., 67 . pp. 222-231.


The need for investment in capital intensive electricity networks is on the rise in many countries. A major advantage of distributed resources is their potential for deferring investments in distribution network capacity. However, utilizing the full benefits of these resources requires addressing several technical, economic and regulatory challenges. A significant barrier pertains to the lack of an efficient market mechanism that enables this concept and also is consistent with business model of distribution companies under an unbundled power sector paradigm. This paper proposes a market-oriented approach termed as “contract for deferral scheme” (CDS). The scheme outlines how an economically efficient portfolio of distributed generation, storage, demand response and energy efficiency can be integrated as network resources to reduce the need for grid capacity and defer demand driven network investments.

Item Type:Article
Keywords:Distributed generation, Storage, Demand response, Investment deferral, Network regulation, Business model.
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Publisher statement:NOTICE: this is the author’s version of a work that was accepted for publication in Energy Policy. Changes resulting from the publishing process, such as peer review, editing, corrections, structural formatting, and other quality control mechanisms may not be reflected in this document. Changes may have been made to this work since it was submitted for publication. A definitive version was subsequently published in Energy Policy, 67, 2014, 10.1016/j.enpol.2013.11.073.
Record Created:10 Jun 2014 11:05
Last Modified:16 Sep 2014 12:57

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