Work

Profitability landscapes for competitive photovoltaic self-consumption

Year: 2024

Type: article

Abstract: Photovoltaic self-consumption (PVSC) is a central element of the energy transition. However, retail electricity tariffs have not adapted to the emerging phenomenon of demand-side generation. We introduce the concept of profitability landscapes to evaluate the effects of a cost-reflective retail tariff and a competitive PVSC regulation on prosumers’ returns depending on system costs and self-consumption share. The trade-off between these two elements reveals the value of demand flexibility. We find that PVSC would be profitable in most European countries when external costs are internalized, confirm the diminishing marginal returns on demand flexibility and quantify the effects of prices, insolation and profitability on the value of demand flexibility.

Source: Energy Policy

DOI: 10.1016/j.enpol.2024.114084

Authors: Javier López Prol, Arijit Paul

Institutions: Yonsei University, Yonsei University Mirae Campus, University of Graz

Language: English

Topic: Smart Grid Energy Management

Subfield: Electrical and Electronic Engineering

Field: Engineering

Domain: Physical Sciences

SDGs: Affordable and clean energy, Climate action, Industry, innovation and infrastructure

Open Access status: hybrid

Estimated APC paid: $3,650