Wednesday, June 4th at 10:30 Maren Peterson will defend her 30 ECTS thesis for a MSc in Electric Power Management called "Net Metering and Utility Viability in the Arctic: Insights from Alaska’s Railbelt"

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• Classroom: M208
• Student: Maren Elizabeth Peterson
• Supervisors: Hlynur Stefánsson, Professor Reykjavík University and Magnus de Witt, University of Alaska Fairbanks
• Examiner: Ewa Ryszarda Lazarczyk Carlson, Associate Professor Reykjavík University

Abstract:

This thesis looks at how distributed solar adoption under net energy metering (NEM) could affect the financial stability of utilities in Alaska’s Railbelt. It employs a case study methodology that merges qualitative interviews with utility representatives with a risk-based financial model to simulate different NEM adoption scenarios over a 15-year period. This study uses Monte Carlo simulations to better predict estimates related to the costs and benefits of NEM for both consumer-generators and utilities. The results of the modeling indicate that high levels of NEM participation can lead to major revenue losses, especially when a large proportion of the region’s customer base is capable of adoption. In extreme cases, with drastic levels of adoption, these losses exceed what utilities have historically earned through their operating margins. On the other hand, lower and mid-level adoption scenarios seem much more manageable and match better with realistic adoption expectations for the region. The results of this study prove that more accurate data collection is a necessity in terms of designing NEM framework, one that is shaped with all stakeholders in mind. This work provides a baseline for understanding the financial risks associated with NEM and solar PV adoption in Arctic and subarctic power systems.