Competition for Flexible Distribution Resources in a 'Smart' Electricity Distribution Network

Arbeitspapier

In a 'smart' electricity distribution network, flexible distribution resources (FDRs) can be coordinated to improve efficiency. But coordination enables whoever controls such resources to exercise market power. The paper establishes the following efficiency rankings of market structures: Aggregators competing for FDRs are more efficient than a distribution system operator (DSO) controlling resources, which is more efficient than no FDR market. A no- market solution is more efficient than an FDR market featuring either (i) both DSO and aggregators; or (ii) a monopoly aggregator also supplying generation to the real-time market. The paper also characterizes a regulation that implements the efficient outcome.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: IFN Working Paper ; No. 1351

Classification and Topics

• Classification: Wirtschaft ; Public Goods ; Monopoly; Monopolization Strategies ; Economics of Regulation ; Electric Utilities
• Subject: Aggregator ; Distribution system operator ; Market power ; Real-time market ; Regulation ; Smart grid

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Tangerås, Thomas P.
• Event: Veröffentlichung
• (who): Research Institute of Industrial Economics (IFN)
• (where): Stockholm
• (when): 2020

Further information

• Handle: http://hdl.handle.net/10419/240494
• Last update: 10.03.2025, 11:42 AM CET