L R AS Published on Sunday 7 May 2023 - n° 444 - Categories:distributed facilities
What effect will distributed generation have on companies' energy production?
The increase in rooftop solar installations is expected to have an impact on power companies. They adapt their production to the rhythm of their deliveries. Thus, customers who are loyal to one utility
would in theory have to pay an extra cost to compensate for the departure of residential producers. This is known as the 'death spiral'.
However, the researchers found that the decrease in the number of pro-consumers does not inherently increase transmission costs for traditional consumers. Their research revealed that this claim was false. They called it a 'common belief'. Only large generators that generate significant amounts of their own energy (e.g. 2,000 MWh) will have an effect on utility costs.
PV Tech of 3 May 2023
Editor's note: We are only talking about the transport of energy and not its production. Thus, it is difficult to see how a reduction in production would not lead to a reduction in the company's turnover. The producer must then reduce its production capacity to adapt it to demand. He thus enters a vicious circle, that of a decreasing production, which reduces his turnover and thus his capacity to modernise his installations.
