On 09 February 2021 MEDREG held a workshop dedicated to the Palestinian Electricity Regulator (PERC). During this workshop, the colleagues from PERC exchanged with the researchers Alessandro Rubino and Carlo Brancucci on aspects related to the 2020 report that MEDREG prepared for PERC on "Least cost distribution network tariff design in theory and implementation in the Palestinian Electricity System".
Prof. Rubino presented the main outcomes of the 2020 report. He noted that a capacity component should be included in the revised distribution tariff in 4 out of 5 Palestian distributor companies. The tariff levied in each distributor depends on the specific situation of the distribution companies. As some of these capacity charges may not be affordable for the average customer, specific subsidy policy needs to be considered to increase financial sustainability of the measure.
Prof. Brancucci discussed models for calculating system production costs to inform electricity planning and regulation. He stressed that, in order to study the potential impacts of higher penetrations of wind and solar energy on power system planning and operations, three models can be considered, each giving priority to a different aspect:
- Capacity Expansion Model: Optimization of the expansion of the power system generation and transmission to meet future goals and forecasts, while considering system constraints.
- Production Cost Model: Optimization of the variable electricity generation costs, while considering system constraints.
- Reliability Model Power: Flow simulations and dynamic simulations of the power system to evaluate its stability and response to a contingency.