Abstract for: A System Dynamics model for the Cost Recovery of Residential Smart Meter Roll-Out in the Lemanic Area
In this paper, the effect of governance intervention on the cost allocation of residential Smart Meter roll-out among relevant actors is analyzed. Feedback structures between different dimensions of institutions, including economic, political, social and technological institutions, in energy systems cause institutional lock-in preventing change in these systems. In this paper, the dominant feedback structure between economic and political dimensions of institutional lock-in is analyzed by using a system dynamics model of cost allocation of smart meter roll out in the case of Romande Energie, a state-owned energy company in the Swiss Lemanic area. By modeling, the effect of different policy interventions on two different organizational structure for the utility company are analyzed. Based on the results, policies are proposed for ensuring the efficient cost recovery of smart meter implementation and insights for un-locking the institutional inertia in the energy system and directing transition in energy sector are discussed.