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At least 19 records

Roles of retailers in the peer-to-peer electricity market: A single retailer perspective

Despite extensive research in the past five years and several successfully completed and on-going pilot projects, regulators are still reluctant to implement peer-to-peer trading at a large-scale in today’s electricity market. The reason could partly be attributed to the perceived disadvantage of current market participants like retailers due to their exclusion from market participation - a fundamental property of decentralized peer-to-peer trading. As a consequence, recently, there has been growing pressure from energy service providers in favor of retailers’ participation in peer-to-peer trading. However, the role of retailers in the peer-to peer market is yet to be established as no existing study has challenged this fundamental circumspection of decentralized trading. In this context, this perspective takes the first step to discuss the feasibility of retailers’ involvement in the peer-to-peer market. In doing so, we identify key characteristics of retail-based and peer-to-peer electricity markets and discuss our viewpoint on how to incorporate a single retailer in a peer-to-peer market without compromising the fundamental decision-making characteristics of both markets. Finally, we give an example of a hypothetical business model to demonstrate how a retailer can be a part of a peer-to-peer market with a promise of collective benefits for the participants.

29 ENERGY PLANNING, POLICY, AND ECONOMY↗

Retail Buildings: Assessing and Reducing Plug and Process Loads in Retail Buildings (Fact Sheet)

Plug and process loads (PPLs) in commercial buildings account for almost 5% of U.S. primary energy consumption. Minimizing these loads is a primary challenge in the design and operation of an energy-efficient building. PPLs are not related to general lighting, heating, ventilation, cooling, and water heating, and typically do not provide comfort to the occupants. They use an increasingly largefraction of the building energy use pie because the number and variety of electrical devices have increased along with building system efficiency. Reducing PPLs is difficult because energy efficiency opportunities and the equipment needed to address PPL energy use in retail spaces are poorly understood.

32 ENERGY CONSERVATION, CONSUMPTION, AND UTILIZATI↗

An open retail boundary dataset for South Korea using open data and computer vision technique

Although delineating retail boundaries is important to explore and comprehend the dynamics of the retail sector, it is hard to find studies specifically addressing it in the South Korean context. This study fills this gap by proposing new retail boundaries across South Korea. To achieve this goal, we employed a variety of retailers and building datasets and proposed a unique computer vision-based framework with a deep ensemble voting technique. As a result, we delineated 6,636 distinct retail boundaries that were validated against existing reference retail boundaries. These newly delineated retail boundaries provide valuable insights for researchers, governments, and other relevant stakeholders by enhancing their understanding of retail geography. This dataset can be used as a foundational resource for analyses on topics such as pandemic recovery, retail gentrification, and the resilience of retail spaces in response to e-commerce growth, ultimately contributing to more robust retail sector research in South Korea.

97 MATHEMATICS AND COMPUTING↗

CALiPER Retail Lamps Study 3

The CALiPER program first began investigating LED lamps sold at retail stores in 2010, purchasing 33 products from eight retailers and covering six product categories. The findings revealed a fragmented marketplace, with large disparities in performance of different products, accuracy of manufacturer claims, and offerings from different retail outlets. Although there were some good products, looking back many would not be considered viable competitors to other available options, with too little lumen output, not high enough efficacy, or poor color quality. CALiPER took another look in late 2011purchasing 38 products of five different types from nine retailers and the improvement was marked. Performance was up; retailer claims were more accurate; and the price per lumen and price per unit efficacy were down, although the price per product had not changed much. Nonetheless, there was still plenty of room for improvement, with the performance of LED lamps not yet reaching that of well-established classes of conventional lamps (e.g., 75 W incandescent A19 lamps). Since the second retail lamp study was published in early 2012, there has been substantial progress in all aspects of LED lamps available from retailers. To document this progress, CALiPER again purchased a sample of lamps from retail stores 46 products in total, focusing on A19, PAR30, and MR16 lamps but instead of a random sample, sought to select products to answer specific hypotheses about performance. These hypotheses focused on expanding ranges of LED equivalency, the accuracy of lifetime claims, efficacy and price trends, as well as changes to product designs. Among other results, key findings include: There are now very good LED options to compete with 60 W, 75 W, and 100 W incandescent A19 lamps, and 75 W halogen PAR30 lamps. MR16 lamps have shown less progress, but there are now acceptable alternatives to 35 W, 12 V halogen MR16 lamps and 50 W, 120 V halogen MR16 lamps for some applications. Other uses, such as in enclosed luminaires, may require more development. At the same price point, lamps purchased in 2013 tended to have higher output and slightly higher efficacy than in 2011 or 2010. Over 30% of the products purchased in 2013 exceeded the maximum efficacy measured in 2011 (71 lm/W), with the most efficacious product measured at 105 lm/W. There appears to be increasing consistency in color quality, with a vast majority of products having a CCT of 2700 K or 3000 K and a CRI between 80 and 85. There were also fewer poor performing products tested and more high-performing products available in 2013 than in previous years. The accuracy of equivalency and performance claims was better than in 2011, but remains a concern, with 43% of tested products failing to completely meet their equivalency claim and 20% of products failing to match the manufacturer’s performance data. Although progress has been substantial, on average LED lamps remain more expensive than other energy efficiency lighting technologies -- although some aspects can be superior. Although not universal to all product lines or all product types, the issue of insufficient lumen output from LED lamps is waning. Thus, manufacturers can focus on other issues, such as reducing cost, improving electrical/dimmer compatibility, eliminating flicker, or improving color quality. While these issues are not inherent to all products, they remain a concern for the broader market.

32 ENERGY CONSERVATION, CONSUMPTION, AND UTILIZATI↗

Disaggregating Future Retail Electricity Rate Growth [Slides]

Recent Berkeley Lab research found that modest retail rate increases over the past 10 years were mostly driven by large increases in capital expenditures (CapEx) that were offset in part by substantial wholesale price reductions. Decision-makers are increasingly concerned about the potential future rate impacts of a number of policies and industry trends that support rapid decarbonization, electrification, and grid modernization. Using historical FERC Form 1 data and the existing literature on policies and industry trends that are likely to affect utility-incurred costs and retail sales, Berkeley Lab researchers developed ranges of forecasted growth rates for cost-related rate drivers (i.e., fuel and purchased power; transmission, distribution, generation, and other categories of both non-fuel operations & maintenance and CapEx) and non-cost related rate drivers (i.e., retail sales, peak demand, and customers). These were then used as inputs to a pro-forma utility financial model (FINDER) that estimated the growth in retail electric rates between 2020 and 2030 for a prototypical vertically-integrated investor-owned utility in the United States. The analysis produced the following results: 1. Assuming average growth rates in all rate drivers, future retail rate growth is driven by sizable increases in all CapEx costs, where fuel and purchased power costs are replaced by generation CapEx as the largest rate component between 2020 and 2030. 2. Growth in sales/peak demand/customers, generation CapEx costs, and fuel and purchased power (FPP) costs, in isolation, produce the most uncertainty in rate growth. Specifically, a 1% increase in the compound annual growth rate (CAGR) of retail sales, coincident peak demand (CP), and customers (Sales-CP-Cust) results in a 0.88-0.93% decrease in the CAGR of rates, in isolation. However, a 1% increase in the CAGR of generation CapEx budgets results in a 0.07-0.14% increase in the CAGR of rates, while a 1% increase in the CAGR of FPP costs causes a 0.10-0.14% increase in the CAGR of rates, all else being equal. 3. Taking into account the correlation and variability of the growth in all rate drivers jointly, generation CapEx is expected to be both the largest and most uncertain rate component by 2030 (20-25% share of the retail rate). Transmission and distribution CapEx, along with fuel and purchased power costs are each expected to comprise between 12% and 17% of retail rates.

29 ENERGY PLANNING, POLICY, AND ECONOMY↗

Retail Electricity Price and Cost Trends: 2024 Update [Slides]

Berkeley Lab’s "Retail Electricity Price and Cost Trends" summarizes recent trends in retail electricity price levels and price drivers in the United States. This report is intended to serve as a reference document for the diverse set of decision-makers impacted by changes in retail electricity prices and to provide a factual basis for assessing recent changes in retail electricity prices and key underlying drivers. National, regional, and state trends are reported for 2019 through 2023 using publicly-available data for: -Average retail electricity prices, retail sales, and utility revenues -Utility capital expenditures, operations and maintenance costs, and fuel and purchased power costs -Retail electricity sales impacts from behind-the-meter resources The report also includes qualitative case studies highlighting recent and/or regionally-specific issues contributing significantly to retail electricity price trends

29 ENERGY PLANNING, POLICY, AND ECONOMY↗

Unpacking the Disconnect Between Wholesale and Retail Electric Rates [PowerPoint]

The 2017 DOE Staff Report to the Secretary on Electricity Markets and Reliability noted a disconnect between falling wholesale electricity prices and flat or rising retail investor-owned utility (IOU) electricity prices between 2008 and 2016. This analysis sought to assess recent trends in utility costs, retail sales, and/or retail rates vis-à-vis wholesale market prices in order to help explain this disconnect. Using FERC Form 1 and ICE Power Indices data, Berkeley Lab researchers developed key annual metrics between 2007 and 2016 at a regional level for five of the seven NERC regions: Midwest Reliability Organization (MRO), Northeast Power Coordinating Council (NPCC), ReliabilityFirst Corporation (RFC), SERC Reliability Corporation (SERC), and Western Electricity Coordinating Council (WECC). The analyses of these metrics enabled Berkeley Lab researchers to arrive at the following conclusions: Retail and wholesale rates were increasingly disconnected across all included NERC regions; Reductions in wholesale electricity market prices happened concurrently with reductions in IOU fuel and purchased power (FPP) costs, but sizable regional differences in the degree of FPP cost reductions existed; Reductions in IOU FPP costs were offset in part by increases in non-fuel operations and maintenance (O&M) costs, but modest regional differences in the degree of these cost impacts existed; Reductions in IOU FPP costs were also offset in part by increases in capital expenditures, but regional differences in the magnitude and type of investments existed; and, Reductions in retail sales tended to mitigate the effect on retail rates from reductions in total utility costs, but regional differences existed that were sometimes counterintuitive and suggest the value in a more detailed analysis of utility costs vis-à-vis general rate case filings and decisions to better understand retail rate changes over time.

29 ENERGY PLANNING, POLICY, AND ECONOMY↗

Net Metering and Market Feedback Loops: Exploring the Impact of Retail Rate Design on Distributed PV Deployment

The substantial increase in deployment of customer-sited solar photovoltaics (PV) in the United States has been driven by a combination of steeply declining costs, financing innovations, and supportive policies. Among those supportive policies is net metering, which in most states effectively allows customers to receive compensation for distributed PV generation at the full retail electricity price. The current design of retail electricity rates and the presence of net metering have elicited concerns that the possible under-recovery of fixed utility costs from PV system owners may lead to a feedback loop of increasing retail prices that accelerate PV adoption and further rate increases. However, a separate and opposing feedback loop could offset this effect: increased PV deployment may lead to a shift in the timing of peak-period electricity prices that could reduce the bill savings received under net metering where time-varying retail electricity rates are used, thereby dampening further PV adoption. In this paper, we examine the impacts of these two competing feedback dynamics on U.S. distributed PV deployment through 2050 for both residential and commercial customers, across states. Our results indicate that, at the aggregate national level, the two feedback effects nearly offset one another and therefore produce a modest net effect, although their magnitude and direction vary by customer segment and by state. We also model aggregate PV deployment trends under various rate designs and net-metering rules, accounting for feedback dynamics. Our results demonstrate that future adoption of distributed PV is highly sensitive to retail rate structures. Whereas flat, time-invariant rates with net metering lead to higher aggregate national deployment levels than the current mix of rate structures (+5% in 2050), rate structures with higher monthly fixed customer charges or PV compensation at levels lower than the full retail rate can dramatically erode aggregate customer adoption of PV (from -14% to -61%, depending on the design). Moving towards time-varying rates, on the other hand, may accelerate near- and medium-term deployment (through 2030), but is found to slow adoption in the longer term (-22% in 2050).

14 SOLAR ENERGY↗

The retailed gasoline price in China: Time-series analysis and future trend projection

This study introduces a method to systematically project retailed gasoline prices in China and provides projection results. Based on oil taxation and pricing mechanisms in China, this study establishes the statistical relationship between the retailed gasoline prices in China and international crude oil prices using error correction models (ECM), time-series models. Detailed comparison among asymmetric ECM, threshold ECM, and threshold asymmetric ECM are provided. By adopting the ECMs, the study projects the retailed gasoline prices from 2019 to 2050 based on the international crude oil prices from the Annual Energy Outlook provided by the U.S. Energy Information Administration. The results show that the asymmetric responsiveness and the threshold effect exist under current Chinese oil pricing policy with a lag of one month or even shorter in gasoline price adjustment. Moreover, the analysis informs one that, in the short-run, the retailed gasoline prices in China are more sensitive to international crude oil price increases; while in the long-run, the retailed gasoline prices are more sensitive to international crude oil price decreases. Compared with the national average gasoline price in China of 6.04 CNY/Liter in 2017, the national average gasoline price in China is projected to be about 7.64 CNY/Liter (2017 dollar) by 2050.

29 ENERGY PLANNING, POLICY, AND ECONOMY↗

An Introduction to Retail Electricity Choice in the United States

Retail electricity choice in the United States allows end-use customers (including industrial, commercial, and residential customers) to buy electricity from competitive retail suppliers. This brochure offers an overview of retail electricity choice in the United States, and its impact on prices and renewable energy procurement. It concludes with three lessons learned from the U.S. retail market experience that may serve as a reference for other countries and regions taking steps towards retail electricity market liberalization.

29 ENERGY PLANNING, POLICY, AND ECONOMY↗

Energy and IAQ Implications of Alternative Minimum Ventilation Rates in California Retail and School Buildings

For a stand-alone retail building, a primary school, and a secondary school in each of the 16 California climate zones, the EnergyPlus building energy simulation model was used to estimate how minimum mechanical ventilation rates (VRs) affect energy use and indoor air concentrations of an indoor-generated contaminant. The modeling indicates large changes in heating energy use, but only moderate changes in total building energy use, as minimum VRs in the retail building are changed. For example, predicted state-wide heating energy consumption in the retail building decreases by more than 50% and total building energy consumption decreases by approximately 10% as the minimum VR decreases from the Title 24 requirement to no mechanical ventilation. The primary and secondary schools have notably higher internal heat gains than in the retail building models, resulting in significantly reduced demand for heating. The school heating energy use was correspondingly less sensitive to changes in the minimum VR. The modeling indicates that minimum VRs influence HVAC energy and total energy use in schools by only a few percent. For both the retail building and the school buildings, minimum VRs substantially affected the predicted annual-average indoor concentrations of an indoor generated contaminant, with larger effects in schools. The shape of the curves relating contaminant concentrations with VRs illustrate the importance of avoiding particularly low VRs.

32 ENERGY CONSERVATION, CONSUMPTION, AND UTILIZATI↗

Design trade-offs for residential retail tariffs and virtual power plants

Retail rate design and virtual power plants (VPPs) have the potential to shift customer electricity demand and provide economic benefits to utility customers. As the adoption of distributed energy resources (DERs) and flexible loads increases, retail tariff and program design can impact Bonbright's rate design principles including affordability, fairness, and economic efficiency. We model the effects of residential retail rates and VPP programs on power system costs in Massachusetts under a potential future system with high renewable energy and DER adoption. We model interactions among retail rate design, demand flexibility, and utility costs and identify trade-offs across different rate designs and VPP programs. We estimate that time-of-use (TOU) rates and VPP programs designed to avoid critical peak rates can lower overall system costs by 3.5 %-4.8 %. These lower costs translate to lower electricity bills for 62 %-91 % of customers, depending on the scenario. Although TOU rates with a critical peak VPP program can benefit all customer segments and are economically efficient, a VPP program with flat rates leads to the lowest overall bills for customers. We find that customers with loads that align with peak demand and who participate in critical peak VPP programs can underpay for their contribution to utility costs and shift costs to other customers. While our assumptions about mandatory TOU and/or critical peak pricing likely impact the magnitude of the results, the results highlight the trade-offs of these tariffs and programs and the importance of tariff and program design as demand becomes more flexible and responsive.

24 POWER TRANSMISSION AND DISTRIBUTION↗

Decisions and coordination of retailer-led low-carbon supply chain under altruistic preference

A low-carbon supply chain formed by a dominant retailer and a small and medium-sized manufacturer (SMM) is considered. Because the SMM faces the high cost pressure of adopting carbon emission reduction (CER) technologies, the retailer may take an altruistic preference for the long-term sustainability of the chain. Three decision-making models, centralized, decentralized without altruistic preference, and decentralized with altruistic preference, are constructed to compare decisions and profits of both parties. Since neither decentrailized models can lead to a coordinated solution that is incentive compitable, a coordination contract, referred to as the cost sharing contract with altruistic preference, is proposed. Numerical study shows that the altruistic preference can help increase the SMM's profit and system efficiency but decrease the retailer's profit. The coordination contract requires the retailer to adjust the unit profit and share more than half of the CER cost. Finally, it is found that the wholesale price is the lowest in the coordination contract and the comparison of unit profit depends on the coefficient of CER cost.

29 ENERGY PLANNING, POLICY, AND ECONOMY↗