Tokyo, 1 May 2023
Assessing the Impact of Going Off-Grid on Transmission Charge and Energy Market Outcomes
Researchers from Japan and USA shed light on the unintended consequences of distributed renewable energy resources using mathematical modeling
A study led by Professor Ryuta Takashima of the Tokyo University of Science has investigated the impact of prosumers, those who produce their own electricity, on transmission charges and the market. Contrary to common belief, the study found that the transmission charge does not always increase with the number of prosumers, with charges actually going down when prosumers generate less electricity.
However, the study also found that the likelihood of death spirals, a vicious cycle that could be created due to prosumers, increases with the presence of strategic prosumers who lower their energy consumption from the bulk electricity market in the presence of imperfect competition. The study suggests levying a per-MWh tax on the electricity consumption of prosumers from the bulk market to reduce the possibility of death spirals occurring.
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