The Future of Decentralized Electricity Distribution Networks

The Future of Decentralized Electricity Distribution Networks

1st Edition - June 1, 2023

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  • Editor: Fereidoon Sioshansi
  • Paperback ISBN: 9780443155918

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The Future of Decentralized Electricity Distribution Networks assesses the evolution of the services delivered by the distribution network as demands placed on it proliferates from distributed, self-generating, power storing and power sharing ‘consumers’ – which Sioshansi terms ‘prosumagers’. The work outlines the processes by which passive and homogeneous electricity consumers become prosumers and prosumagers, the nature of their service needs, and dependence on the services delivered by the distribution network diverges. Contributors assess how consumers are discovering and exercising options to migrate away from total reliance on upstream generators to produce electricity and on the delivery network for its transmission. As they do so, the "utilities" – be they distributors or retailers – must rethink the traditional utility business model. How will they find sufficient revenues to cover their fixed and variable costs as volumetric consumption declines when some consumers become prosumers – or go a step further and become prosumagers? This work argues that new service, business models and new methods for collecting sufficient revenues to maintain the network are mandatory for the survival of modern utilities.

Key Features

  • Examines the future of services demanded by electricity customers as some diverge from their traditional total reliance on the network for delivery of all their service needs
  • Reviews the emergence of new business models to meet the diverging needs of customers
  • Explores the costs imposed by new types of customers on the delivery network and how to collect sufficient revenues from all to maintain it in ways that are efficient, equitable and fair


Practitioners in the utility industry investigating how to model and plan for demand-side generation, storage and prosumer behaviors. Regulators and policy makers making governance decisions on distributed energy systems. Researchers studying energy markets and energy systems. Energy economists

Table of Contents

  • Foreword
    Jean-Michel Glachant
    Richard Green
    Introduction & chapter summaries
    Fereidoon Sioshansi

    Part One: How technological innovations are changing customers’ service needs
    1) What drives consumers to become prosumers and prosumagers?
    Fereidoon Sioshansi
    2) Commercial rooftop solar in Australia: State of play, innovations and future prospects
    Bruce Mountain
    3) Reaching world-record levels of rooftop solar PV: Causes and effects in Queensland
    Paul Simshauser, Joel Gilmore, and Tim Nelson
    4) Are networks keeping up with what customers need?
    Fereidoon Sioshansi

    Part Two: Old rules, new realities, unsustainable outcome
    5) Productive net metering reform: Where do the foundations of regulation, technological change and good economics meet?
    Fereidoon Sioshansi, Richard McCann, M.Cubed and Jim Lazar
    6) Leveraging the rise of the prosumer to promote electrification
    Richard McCann
    7) California at crossroads: How not to fumble the opportunities to transform the regulation of the power sector
    Kevin Bell
    8) The design and structure of retail electricity markets in Europe
    Carlo Stagnaro

    Part Three: Regulation, policy, pricing
    9)Telecom pricing: Lessons for emerging electricity networks
    Carl Danner
    10) A new value proposition for electric distribution networks
    Lorenzo Kristov
    11) Why fair and efficient network pricing really matters
    David Robinson and Angel Arcos-Vargas
    12) Facilitating power system transformation at the distribution network level
    Darryl Biggar and Mohammad Hesamzadeh
    13) In search of a tariff fit for the grid’s edge revolution: Reflections from Brazil
    Richard Hochstetler and João Cho
    14)Performance-based regulation to drive utility transformation and encourage DER markets
    Karl R. Rábago and Jesse Hitchcock
    15) Re-thinking, re-packaging and re-pricing the grid and retail electricity
    Mark Kolesar

    Part Four: Case studies, emerging innovative services, new business models
    16) How an innovative co-op is planning to thrive amidst the market disruptions: The Case of Holy Cross Energy
    Bryan Hannegan
    17) Turning passive customers into active participants: MCE's innovative DER program
    Jim Baak
    18) How multiple trading relationships could upend historical single supplier business model
    John Campbell
    19) Innovative products and services to meet the needs of present and future customers
    Con Hristodoulidis
    20) The future of grid-interactive efficient buildings and local transactive energy markets
    Kay Aikin

    Stephen Littlechild

Product details

  • No. of pages: 468
  • Language: English
  • Copyright: © Elsevier 2023
  • Published: June 1, 2023
  • Imprint: Elsevier
  • Paperback ISBN: 9780443155918

About the Editor

Fereidoon Sioshansi

Fereidoon Sioshansi
Dr. Fereidoon Sioshansi is President of Menlo Energy Economics, a consulting firm based in San Francisco with over 35 years of experience in the electric power sector working in analysis of energy markets, specializing in the policy, regulatory, technical and environmental aspects of the electric power sector in the US and internationally. His research and professional interests are concentrated in demand and price forecasting, electricity market design, competitive pricing & bidding, integrated resource planning, energy conservation and energy efficiency, economics of global climate change, sustainability, energy security, renewable energy technologies, and comparative performance of competitive electricity markets. Dr. Sioshansi advises major utility clients and government policy makers domestically and internationally on electricity market reform, restructuring and privatization of the electric power sector. He has published numerous reports, books, book chapters and papers in peer-reviewed journals on a wide range of subjects. His professional background includes working at Southern California Edison Co. (SCE), Electric Power Research Institute (EPRI), NERA, and Global Energy Decisions. He is the editor and publisher of EEnergy Informer, a monthly newsletter with international circulation. He is on the Editorial Advisory Board of The Electricity Journal where he is regularly featured in the “Electricity Currents” section. Dr. Sioshansi also serves on the editorial board of Utilities Policy and is a frequent contributor to Energy Policy. Since 2006, He has edited 12 books on related topics with Elsevier.

Affiliations and Expertise

President, Menlo Energy Economics, San Francisco, CA, USA

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