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

Marginal Capacity Costs of Electricity Distribution and Demand for Distributed Generation

Marginal costs of electricity vary by time and location. Past researchers attributed these variations to factors related to electricity generation, transmission and distribution. Past authors, however, did not fully analyze the large variations in marginal distribution capacity costs (MDCC) by area and time. Thus, the objectives of this paper are as follows: (1) to show that large MDCC variations exist within a utility's service territory; (2) to demonstrate inter-utility variations in MDCC; and (3) to demonstrate the usefulness of these costs in determining demand for distributed generation (DG).

Purchase ( $25 )

Energy Specializations: Electricity – Local Distribution; Electricity – Distributed Generation; Electricity – Markets and Prices

JEL Codes: Q41: Energy: Demand and Supply; Prices, Q40: Energy: General, L94: Electric Utilities, L95: Gas Utilities; Pipelines; Water Utilities, Q54: Climate; Natural Disasters and Their Management; Global Warming

Keywords: Electricity markets, distributed generation, electric utilities, marginal distribution capacity costs (MDCC)

DOI: 10.5547/ISSN0195-6574-EJ-Vol16-No2-6

Published in Volume16, Number 2 of the bi-monthly journal of the IAEE's Energy Economics Education Foundation.


© 2023 International Association for Energy Economics | Privacy Policy | Return Policy