IAEE Members and subscribers to The Energy Journal: Please log in to access the full text article or receive discounted pricing for this article.

Distributed Electricity Generation in Competitive Energy Markets: A Case Study in Australia

Abstract:
The electricity industry in Australia has recently undergone significant restructuring. Generation, transmission and distribution have been unbundled and placed under private or public corporate ownership. Industry restructuring, together with concerns about the environment, have resulted in a noticeable increase in distributed electricity generation, especially small-scale generation. This development has important ramifications for the electricity industry and the wider economy. This paper provides an empirical analysis of the recent growth in distributed electricity generation in Australia, and analyzes the factors driving this resurgence of interest. The paper also attempts to identify the underlying factors contributing to the development of distributed generation. Past and current distributed generation projects are classified according to which technical or institutional factor was dominant in the realization of each project. This enables us to identify changes over time in the rationale for distributed generation. A comparative analysis of the developments in the different Australian states provides additional insights into the roles played by factors such as geography, the availability of low-cost industrial by-products for fuel, and the introduction of competitive markets.

Purchase ( $25 )

Energy Specializations: Energy Modeling – Forecasting and Market Analysis; Electricity – Distributed Generation; Electricity – Markets and Prices

JEL Codes: Q40: Energy: General, Q41: Energy: Demand and Supply; Prices, Q53: Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling

Keywords: Electricity, distributed generation, competition, Australia, deregulation

DOI: 10.5547/ISSN0195-6574-EJ-Vol18-NoSI-2

Published in Volume 18, Special Issue of the bi-monthly journal of the IAEE's Energy Economics Education Foundation.

 

© 2024 International Association for Energy Economics | Privacy Policy | Return Policy