Efficiency in electricity distribution in Sweden and the effects of small-scale generation, electric vehicles and dynamic tariffs

Abstract

We measure the cost of technical inefficiency for local electricity distribution firms in Sweden using Stochastic Frontier Analysis, and explore how small-scale generation, the number of electric vehicles and the introduction of dynamic pricing schemes affects the transient inefficiency and efficiency scores. Our results show little to no effect of these environmental variables on the cost of technical inefficiency of electricity distribution grids in Sweden.