Performance-Based Regulation to Improve Upstream Energy Efficiency

Traditional utility regulation provides inadequate incentives for electric utilities to invest in technologies that reduce network energy losses. This article examines how alternative regulatory designs influence such investments, and simulates the procurement and performance of distribution transformers under differing regulatory scenarios, to demonstrate the enormous potential benefits of a performance-based regulation scheme that targets network losses.

Author: Benjamin Mandel

Published in: The Electricity Journal 


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