3 Gaps and contribution

In a centralized energy system which is the case in Switzerland, the distribution network has been mostly monodirectional. As a result, the current legislation obligates the final consumer to pay for all the energy transportation levels. However, if the energy system is to become more decentralized by integrating decentralized renewable energy vector such in the energy mix such as PV panels, electricity may be produced and consumed in the same local area. Under this current legislation, the final consumer would again pay for the whole infrastructure even if the consumed energy has been generated locally and do not go through all the existing levels. Local energy generation and consumption raise therefore the question of fair pricing for customers.

If the legislation were to change, the implementation of different transmission and distribution charges for locally produced and consumed electricity could be a step towards integrating renewable energy sources into the energy system. However, few studies have been conducted to investigate which pricing should be apply for local consumption. As explained earlier, the concept of local energy community as a community where prosumers directly sell energy to local customers but using the DSO network is a promising framework for local energy production and consumption. In this context the DSO could charge local fees for the usage of its distribution network, which would be lower than the classical distribution charges that account for the distribution of energy across every energy levels. This would offer a new pricing scheme for locally consumed energy that would at the same time allow the producer to value its energy at a higher tariff while remaining competitive.

Besides the fact that CEL implementation would require changes in business models of power utilities and distribution system operators (DSO) as explained, it also implies having a proper delineation of a neighborhood for this structure to be applied. However, a precise definition of a neighborhood and especially the appropriate scale to consider has yet to be clarified. The goal of the present study is thus to answer those two problems at the level of the canton of Geneva :

• First different zonings of the canton are studied before clustering the desired neighborhood subdivision to characterize each neighborhood by its energetic characteristics.
• Second a financial analysis of a CEL implementation, where local distribution charges are implemented, in a residential neighborhood (Les Vergers) was conducted to estimate the changes in business models that would be required for the different stakeholders of the grouping.