Using solar PV feed-in tariff policy history to inform a sustainable flexible pricing regime to enhance the diffusion of energy storage and electric vehicles

Bell, William Paul and Foster, John (2017) Using solar PV feed-in tariff policy history to inform a sustainable flexible pricing regime to enhance the diffusion of energy storage and electric vehicles. Journal of Bioeconomics, 19 1: 1-19. doi:10.1007/s10818-016-9240-9


Author Bell, William Paul
Foster, John
Title Using solar PV feed-in tariff policy history to inform a sustainable flexible pricing regime to enhance the diffusion of energy storage and electric vehicles
Journal name Journal of Bioeconomics   Check publisher's open access policy
ISSN 1573-6989
1387-6996
Publication date 2017-01-04
Sub-type Article (original research)
DOI 10.1007/s10818-016-9240-9
Open Access Status Not yet assessed
Volume 19
Issue 1
Start page 1
End page 19
Total pages 19
Place of publication New York, United States
Publisher Springer
Language eng
Subject 3305 Geography, Planning and Development
2002 Economics and Econometrics
Abstract The aim of this paper is to analyses residential solar PV feed-in tariffs (FiT) policy history to inform the development of a sustainable flexible pricing regime to enhance the diffusion of energy storage, electric vehicles, solar PV installations and other distributed resources focusing on the case of ‘solar rich’ Australia. Solar PV has reached price parity at the retail level where the electricity price charged includes both transmission and distribution costs, in addition to the wholesale price. So the economic rationale for paying a FiT premium above market rates to achieve dynamic efficiency is no longer warranted. However, there is justification pay a premium to encourage dynamic innovation in energy storage. Socially, FiTs can be a problem because they can transfer wealth from poorer to richer households. Additionally, new investment in distribution and transmission, driven by peak demand spikes from air conditioners can act as a further transfer. Environmentally, FiTs can also fall short of their full potential to cut emissions if they lack ‘time of use’ price signals that reflect movements in the wholesale price. We suggest a sustainable flexible price regime that can be designed to addresses all three areas of concern: social, environmental and economic. The resultant transmission and distribution investment deferment would meet both environmental and economic objectives. We argue that the time has come to design a sustainable flexible price regime for solar PV that focusses upon allocative efficiency as an explicit goal and to introduce support for other distributed resources including energy storage to encourage dynamic efficiency.
Keyword Renewable and green energy
Solar power
Grid Connected Photovoltaic (pv)
Feed-in tariff
Energy policy
Q-Index Code C1
Q-Index Status Provisional Code
Institutional Status UQ
Additional Notes Published online 4 January 2017

Document type: Journal Article
Sub-type: Article (original research)
Collections: HERDC Pre-Audit
School of Economics Publications
 
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Created: Wed, 11 Jan 2017, 02:00:58 EST by Mr Paul Bell on behalf of School of Economics