Comparison of competitiveness of grid companies and industrial companies' own generating units

Abstract

In contemporary Russia, the existing electricity supply model is gradually changing, the focus shifting to the priority development of small-scale distributed power generation. It is, however, impossible to significantly reduce grid electricity consumption in the near future. Conditions for grid companies are getting increasingly competitive, which may result in higher tariffs for consumers. At the same time, the development of small-scale power generation in this country is chaotic and its efficiency has never been adequately compared to that of grid electricity consumption. The article looks at factors and conditions that may help boost grid companies' competitiveness. It also provides a new developed methodology for comparative analysis of the efficiency of the construction of a company's own generating unit as opposed to consuming grid electricity. The article contains estimates of the cost of connection technologies to the grid and electricity tariffs for different scenarios of development. The article looks at the potential for tariff reduction and reveals peculiarities and the cost of construction and operation of generating units for industrial companies. The methodology was tested in Chelyabinsk Region which is served by JSC "Interregional Distribution Grid Company of Ural". © 2017 WIT Press.