The electricity market pricing mechanism improvement according to the distributed generation development

Fain B. I.

This article considers the problems of improving the electric power market state regulation in the modern world trend context, which is to increase the role of distributed generation. The distributed generation development current assessment is given. The effects provided by distributed generation facilities and its features are considered, which should be taken into account when setting prices (tariffs) for electric energy and related services in the electric power industry. The problems of Russian electric energy (power) markets pricing mechanisms which are inhibiting the distributed generation development are revealed. The measures to improve these mechanisms are proposed.

Keywords:renewable energy sources, government regulation, small energy, distributed generation, distribution networks, retail electricity market, tariffs, pricing, power plants, electric power industry, power supply