Cross-subsidization in the electric power industry: an empirical analysis, an assessment of the efficiency of its own generation

Abstract

It is necessary to understand what cross-subsidization is - good or bad, evil or good, a problem that needs to be solved, or a necessity that should exist now. In my report, I will talk about the essence and history of the emergence of the phenomenon of cross-subsidization, I will describe the current state in order to understand where we are now, and the promising trends of this phenomenon that exist in public space, legislation, the heads and minds of science and government. I will also present a model for assessing the functioning of a consumer under conditions of work in the power system and in the case of his transition to its own generation with different amounts of cross-subsidization, I will dwell on the results of the simulation. The generated model is a toolkit for market participants that will help them choose the most profitable and efficient way of supplying energy.