IEEE Power & Energy Magazine - May/June 2020 - 26

Making the
Grid Work
for Itself and
Distributed
Energy
Resources

©ISTOCKPHOTO.COM/ERHUI1979

By Furong Li,
Chenghong Gu,
and Ran Li

C

CONSU M ERS I N T H E U N I T ED K I NG dom typically spend, on average, £33 billion/
year for electricity, of which a significant portion
(21% in 2017) is paid to distribution companies for delivering electricity to customer premises. To protect consumers' interest, Ofgem (Office of Gas and Electricity Markets),
the energy regulator in the United Kingdom, is actively
reforming network charges so that they remain usable for
the purpose of facilitating the industry's transition to lowcarbon emissions.
Network charges are applied to generators and suppliers for their use of the system to transport energy over a
distance. Utilities employ network charges as commercial
instruments that influence network users' behavior, which
promotes the most efficient use of the network and achieves
cost recovery. The fundamental principle for traditional network pricing methodologies also reflects the use of network
assets attributable to network customers, such as distributed

Flexible
Network Pricing
Encourages
Greater Sharing
Digital Object Identifier 10.1109/MPE.2020.2972137
Date of current version: 17 April 2020

26

ieee power & energy magazine

1540-7977/20©2020IEEE

may/june 2020



http://www.ISTOCKPHOTO.COM/ERHUI1979

IEEE Power & Energy Magazine - May/June 2020

Table of Contents for the Digital Edition of IEEE Power & Energy Magazine - May/June 2020

Contents
IEEE Power & Energy Magazine - May/June 2020 - Cover1
IEEE Power & Energy Magazine - May/June 2020 - Cover2
IEEE Power & Energy Magazine - May/June 2020 - Contents
IEEE Power & Energy Magazine - May/June 2020 - 2
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IEEE Power & Energy Magazine - May/June 2020 - 26
IEEE Power & Energy Magazine - May/June 2020 - 27
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IEEE Power & Energy Magazine - May/June 2020 - Cover3
IEEE Power & Energy Magazine - May/June 2020 - Cover4
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