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Lightning Talk - Energy: How Can Smart-Grids Help for Climate Mitigation?
- 1. Decarbonizing ENERGY: lighting Talks Prudence Dato (University of Basel) How can Smart-grids help for climate mitigation?
- 2. Renewable Energy is great for climate but come with challenges Intermittency and unpredictability Reliability and security of energy systems
- 3. Smart grid can help but raise new problems Smart-grids technologies are solutions for reliability and security of the energy systems Smart grid can generate rebound effects Figure1: Smarter electricity systems Source: IEA, 2011
- 4. Is a Massive rollout of smart meter a good solution? When the household is equipped with smart grid technologies: • Can the electricity consumption increase? • Can the household’s welfare increase?
- 5. GHG emissions can be higher with smart grids Smart meters can lead to more grid electricity purchase: When the discrepancy between the fixed tariff and the (higher) expected tariff with smart meter is small. Possibly high GHG emissions if fossil fuels hold a significant share in grid electricity mix.
- 6. smart meter can be welfare worsening unless it is subsidized Smart meters can lower household’s welfare: The incremental benefit from installing a smart meter may not be sufficient to cover its cost. However, a full subsidization of smart meter deployment is less likely to reduce HHs’ welfare.
- 7. Regulative measures can be required for nationwide deployment of SM Nationwide deployment of smart meters can call for regulative measures: Regulation of tariff with smart meter Full subsidisation of smart meter deployment.
Editor's Notes
- SG and the consequences of demand-side management for HHs have recently received a lot of attention in the academic literature and in the media. Ambitious objective for smart metering roll-out to at least 80% by 2020 (EU Commission, 2012): But not considering some important economic aspects
- According to the IPPC, Human activities are mainly responsible for climate change. Most specifically, the energy sector represents more than two-thirds of all anthropogenic GHG emissions. Energy transition is one of the solutions to fight climate change: via Decentralized electricity generation. Problems: Renewables are intermittent and unpredictable New challenge: reliability and security of energy systems.
- Good news: Smart-grids (SG) technologies provide solutions to deal with this new challenge and help promoting the integration of renewable energy (RE). While SG technologies massive rollout for demand side management are intended to reduce electricity, this may also induce rebound effects with more electricity purchase and less welfare…
- Is a Massive rollout of smart meter (SM) a good solution? When the household (HH) is equipped with (i) solar panels (rooftop), (ii) storage device, (iii) smart meter, and has flexibility in feeding (resp. purchasing) electricity to (resp. from) the grid (via net metering), What are the consequences for the electricity consumption? Is installing a smart meter welfare improving for the HH?
- Smart meters can lead to more grid electricity purchase: When the discrepancy between the fixed tariff and the (higher) expected tariff with SM is small. This is not the case in Hong Kong with low electricity price (GBP 0.075 per kWh). But the reverse could apply for countries like the UK where electricity prices are high (GBP 0.15).
- Tariff regulation with smart meter is required, dynamic pricing may not be sufficient: Reduce expected tariffs in countries with currently low electricity price. Increase expected tariffs in countries with currently high electricity price.