An Economic analysis of Local Use of System charges for neighbourhood batteries
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Mountain, Bruce 
ORCID: 0000-0002-2093-2038 and Burns, Kelly ORCID: 0000-0003-4031-3442
(2021)
An Economic analysis of Local Use of System charges for neighbourhood batteries.
Working Paper.
Victoria Energy Policy Centre, Victoria University, Melbourne, Australia.
Abstract
Should neighbourhood batteries pay discounted “Local Use of System” (LUoS) charges for their use of the electricity grid? This article presents economic arguments. It concludes that a rationale exists for such discounted charges, for the same reason that network charge discounts are justified to avoid network by-pass. Eligibility needs to be carefully defined to maximise the prospect that neighbourhood batteries are charged from distributed (local) solar. We also conclude that if LUoS is applied to neighbourhood batteries, fairness arguments suggest solar sponge tariffs should be offered to residential consumers.
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| Additional Information | VEPC Working Paper 2109a |
| Item type | Monograph (Working Paper) |
| URI | https://vuir.vu.edu.au/id/eprint/42669 |
| DOI | 10.26196/vkxg-np11 |
| Subjects | Current > FOR (2020) Classification > 3801 Applied economics Current > Division/Research > Institute for Sustainable Industries and Liveable Cities Current > Division/Research > Victoria Energy Policy Centre (VEPC) |
| Keywords | neighbourhood batteries, network by-pass, solar sponge tariffs, local use of system charges |
| Download/View statistics | View download statistics for this item |
Data Citation/Attribution
Mountain, B., & Burns, K. (2021). An Economic analysis of Local Use of System charges for neighbourhood batteries. Victoria Energy Policy Centre, Victoria University. https://doi.org/10.26196/VKXG-NP11
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