Innovation and Disruption at the Grid’s Edge

Chapter 3

The Great Rebalancing: Rattling the Electricity Value Chain from Behind the Meter

Robert Smith^*

Iain MacGill^***    East Economics, Sydney, NSW, Australia^**    Centre for Energy and Environmental Markets (CEEM) and School of Electrical Engineering and Telecommunications, University of New South Wales, Sydney, NSW, Australia

Abstract

This chapter aims to redress traditional conceptions of the electricity value chain which have focused heavily on costs on the grid side of the meter. DER is now driving a great rebalancing, rattling the value chain and refocusing the sector on costs and benefits behind the meter. Most assets are behind the meter and the consumer surplus from energy services is almost certainly the largest segment of the value ...