Distribution Pricing: Are We Ready for the Smart Grid?

ENERGY TRANSPORTATION COSTS TYPICALLY make up a quarter of consumers? electricity bills, and most of this amount (90% in the United Kingdom, 75% in Brazil and Spain, and 60% in India, for example) is due to energy transportation through the distribution network. This cost could escalate over the next few decades as distributed energy resources are expected to grow substantially in response to the financial incentives many governments have created for renewable and efficient generation to meet their CO2 reduction targets.