Smart Grids and Renewable Electricity Generation by Households
(with Prudence Dato and Aude Pommeret)
The aim of the study is to analyze investments in intermittent renewable energy and energy storage by a household (HH). The novelty of our model accrues from the flexi- bility it assigns to a HH in feeding (purchasing) electricity to (from) the grid or storing energy from renewable energy installations. We study the consequences of demand-side management for a HH by accounting for three levels of equipment in smart grids. The first level refers to the possibility of feeding electricity to the grid, which can be achieved relatively simply by net metering. The second level concerns the installation of smart meters. The third level relates to energy storage. We analyze decisions concerning photovoltaic system and energy storage investments, and the consequences of energy storage and smart meters for electricity consumption and purchases of electricity from the grid. Additionally, we study the desirability of a smart meter installation and the implications of curtailment measures for avoiding congestion. Our results indicate that dynamic tariffs, which should encourage HHs to use the power system efficiently and, thus, to save energy, can lead to more reliance on the grid. Thus, the dynamic tariff structure needs to be carefully planned.