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De Castro, Luciano
Dutra, Joisa
Year of Publication: 
Series/Report no.: 
Discussion Paper, Center for Mathematical Studies in Economics and Management Science 1544
Smart Grid (SG) technologies may bring substantial advantages to society, but the required investments are also sizable. This paper establishes a framework for examining the issues related to the SG, and highlights some of the difficulties in establishing a mechanism for paying SG costs. In particular, we show that generators will lose profits as a direct effect of demand response initiatives, and most of the benefits of SG cannot be easily converted into payments.
Document Type: 
Working Paper

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