This article analyzes the financial impact of distributed energy resources (DERs) owned and operated by commercial customers on the load serving entities (LSEs). DERs reduce the customers' electricity bills and hence the revenues collected by their LSE. However, changes in customer demand profiles can potentially reduce the aggregated system demand profile, and therefore, reduce the LSE's costs in wholesale markets. Analysis of these financial impacts indicates that the LSE's lost revenue ultimately outweighs its reduced expenses. This is largely due to a significant reduction in revenue from demand charges. Dispatchable DERs, including energy storages and demand response, result in more financial losses for LSEs than photovoltaics. The financial losses LSEs face indicate that redesigning commercial customer tariffs is necessary in order for LSEs to accommodate customer owned DERs properly. Several suggestions on modifying commercial tariffs are presented.
Energy Policy – Elsevier
Published: Nov 1, 2015
It’s your single place to instantly
discover and read the research
that matters to you.
Enjoy affordable access to
over 18 million articles from more than
15,000 peer-reviewed journals.
All for just $49/month
Query the DeepDyve database, plus search all of PubMed and Google Scholar seamlessly
Save any article or search result from DeepDyve, PubMed, and Google Scholar... all in one place.
Get unlimited, online access to over 18 million full-text articles from more than 15,000 scientific journals.
Read from thousands of the leading scholarly journals from SpringerNature, Elsevier, Wiley-Blackwell, Oxford University Press and more.
All the latest content is available, no embargo periods.
“Hi guys, I cannot tell you how much I love this resource. Incredible. I really believe you've hit the nail on the head with this site in regards to solving the research-purchase issue.”Daniel C.
“Whoa! It’s like Spotify but for academic articles.”@Phil_Robichaud
“I must say, @deepdyve is a fabulous solution to the independent researcher's problem of #access to #information.”@deepthiw
“My last article couldn't be possible without the platform @deepdyve that makes journal papers cheaper.”@JoseServera