|European Union Electricity Market Glossary|
Net metering is a regulatory framework under which the excess electricity injected into the grid can be used at a later time to offset consumption during times when their onsite renewable generation is absent or not sufficient.
In other words, under this scheme, consumers use the grid as a backup system for their excess power production (Commission Staff Working Document "Best practices on Renewable Energy Self-generation", 15 July 2015, COM(2015) 339 final, p. 10).
Net metering of self-generation should be avoided as it implies that system storage capacity is available for free (Council of European Energy Regulators, CEER Position Paper on Renewable Energy Self-Generation, September 2016, p. 1).
It reduces consumers' time-value sensitivity to volatile energy prices and hence undermines efforts to enhance flexibility and to develop a wider demand-side response with consumers playing a more active market role.
Also ACER and CEER in the "European Energy Regulators’ White Paper #1, Renewables in the Wholesale Market Relevant to European Commission’s Clean Energy Proposals" of 11 May 2017 said:
"[...] "net metering" should be avoided because it may involve participants not paying for their fair share. With increased active participation in the energy markets from prosumers and distributed generation alike, it is important that the signals of the time value of energy and network capacity are available to all. Net metering reduces consumers’ sensitivity to this system, which undermines efforts to enhance flexibility in the market. It can result in parties not paying their fair share of network or system costs and can dull the rewards of those capable of providing flexible response to the system.
Therefore, European Energy Regulators recommend that, in Article 15 of the Electricity Directive, the reference to “cost reflective, transparent and non-discriminatory network charges, accounting separately for the electricity fed into the grid and the electricity consumed from the grid” for prosumers be further developed to exclude the possibility of net metering."
|Last Updated on Friday, 19 May 2017 22:59|