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Electricity Associations as Marked-based Steering Mechanism and Alternative to Fixed Feed-in Tariffs

Authors
Meyer, Sören Christian (University of Hanover, Information System Institute)
Search for Sören Christian Meyer in Research Programmes Information System
Breitner, Michael Hans (University of Hanover, Information System Institute)
Search for Michael Hans Breitner in Research Programmes Information System
Chapter Workshop Lower Saxony Research Group "Smart Nord"
Volume Proceedings of the 28th Conference on Environmental Informatics - Informatics for Environmental Protection, Sustainable Development and Risk Management
Conference EnviroInfo 2014 - ICT for Energy Effieciency
Oldenburg, 2014
Year 2014
Abstract of the Article
This paper describes a business model for local electricity supply and demand steering using
flexible electricity prices. Therefore it evaluates first the composition of the electricity price.
Secondly it estimates the future renewable electricity generation cost. Therefore future renewable
electricity generation prime cost are calculated with a combination of historically derived learning
rates and global market growth estimations, both derived from literature. Thirdly it evaluates the
tax burden on local traded electricity. As result a business model and legal construct which reduces
the tax and levy burden on electricity is identified as crucial factor for flexible electricity prices.
With electricity associations this paper identifies such a judicial construct. Finally centralised
demand steering with smart flexible agents like electric vehicles, dishwasher and washer-dryer is
described. This steering allows to synchronize renewable electricity generation from photovoltaic
power plants, wind turbines and combined heat and power and the local electricity demand.
Pages 729 - 734
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