Utilization and evaluation of the Swedish incentive scheme for the regulatory period 2016-2019
Abstract: The distribution system operators in Sweden act under monopoly, whichmeans that some of its operations and functions are regulated by thegovernment authority Swedish Energy Market Inspectorate (Ei). A centralpart of Ei's task is to determine the revenue cap for all distribution systemoperators. The revenue cap is among other determined by, capital costsand quality of distributing the power.In the 2016-2019 revenue framework driving forces, in the shape of incentives,have been introduced thus to achieve efficient utilization, whereas one ofthe incentives focuses on improving the load factor. This study indicateshow the load factor can be modulated, calculated, controlled in order togenerate a more efficient use of the power grid. This implies that Ei canuse the load factor as a control / reward factor, an incentive thus to inducedistribution system operators to strive for the European Union directiveregarding efficient utilization [1].The study has been based on studying following calculation models of theload factor:1) Annual average load factor, based on daily basis.2) Weighted average, a calculation model that weight days higher with ahigh load.3) Proposed calculation model of load factor that is based on several ratiosof load factor calculations. This model is based on the average sum of:daily load factor, weekly load factor, monthly load factor, seasonal loadfactor and yearly load factor.In addition to the first part of the study, a general optimization model hasbeen developed. The optimization model has been applied to visualizehow distribution system operators can adapt their business according toincentives to achieve optimal reward.The results from the first set of the study indicate significant differences inefficiency performance and financial outcomes, depending on whichmethod of the load factor is imposed in the incentive framework. Theproposed load factor strive and require greater power of action, thus toachieve a good utilization ratio.The result of the optimization problem demonstrates a basis for assessinghow a electricity grid company can adapt its operations, such as pricepricing for different periods of time, in recognition of incentive regulation.The results indicate that price is highly dependent on how price sensitivecustomers are in demand for electricity.
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