OECD on competition and new electricity business models

Knowledge Problem

This article in the OECD Observer by Chris Pike provides a concise overview of some of the current issues and challenges that innovation is creating for existing business and regulatory models in electricity (and cites Kiesling & Munson 2016, thank you for that!). The main argument is that digital innovation is disrupting the traditional regulated retail business model, which itself arises out of regulatory institutions in the industry. The article sets up the idea of peer-to-peer energy and blockchain’s potential as a technology platform that enables decentralized trust among strangers and thus facilitates market processes, and then lays out some alternative means by which distribution network participants can pay for their use of the grid.

This question of who pays for the distribution grid and how is already a pressing one, and will become more important as distributed generation increases, electric vehicle penetration grows, and more microgrids are set…

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