Seminar • ISS4E — The Impact of Renewable Generation, Metering, and Tariff Design on Cross-subsidies within Distribution Grids

Monday, June 3, 2019 1:30 pm - 1:30 pm EDT (GMT -04:00)

Mohammad Ansarin, Rotterdam School of Management
Erasmus University, Netherlands

Climate change and pollution have motivated many regions to adopt renewable energy sources for electricity generation, some at a distribution grid level. This change in infrastructure demands a likewise change in economics. In particular, past tariffs create significant wealth transfers between households, wealth transfers that increase as distributed renewable energy sources (D-RES) units increase. However, smart meters, another infrastructure change, have created opportunities for better electricity tariff designs. 

Using real-world residential household data, we quantify the shortcomings of traditional tariffs and compare them with newer tariff designs. We find that electricity tariffs based on traditional metering technology become steadily worse as D-RES units increase. However, tariffs dependent on smart meters often have far less cross-subsidies which change little as D-RES increases. This research seeks to inform the policy and economics debate surrounding tariff design in distribution grids with increasing generation from renewable sources.


Bio: Mohammad Ansarin is a PhD candidate at the Rotterdam School of Management, Erasmus University (Netherlands). His PhD research focuses on the role of energy cooperatives in the new energy era. His current project analyzes the wealth transfer effects of metering and tariff design in high-renewables distribution grids. 

Previously, Mohammad worked on agent-based modeling of the electricity grid. In a previous life, Mohammad obtained two engineering degrees, one BSc from Sharif University of Technology (Iran) and another MSc from Koc University (Turkey).