IEEE Power & Energy Magazine - July/August 2015 - 16

risk of stranded assets than under invest
and considerably constrain the available
wind energy output.
The sixth article,
by Furong Li, Jose
Wanderley MarangonLima, Hugh Rudnick,
Luana M. MarangonLima, Narayana P. Padhy, Gert Brunekreeft,
Javier Reneses, and
Chongqing Kang, discusses the challenges
faced by distribution pricing under
growing distributed generation, demand-side management, and smart grid
developments. The majority of the tariff
structures and charging methodologies
in practice worldwide were developed
in the 1970s and 1980s, with distribution being one of the most conservative
segments of the electricity chain and
the one that could be hurt first. Charg-

ing methodologies, cost drivers and allocation methods, pricing structures,
and the need to reform
them are reviewed for
seven countries around
the world.
The future looks
troublesome for the
power sector, and the
need is urgent to identify adequate market
incentives for cleaner energy matrices.
Developing countries are drawing
strategies to force supply through arbitrarily designed technology paths,
defined by the state, not considering
substantial uncertainties nor learning from past mistakes made by
the developed world that are causing huge burdens on final consumers. This is further complicated by
mounting environmental concerns,

The need is
urgent to identify
adequate market
incentives for
cleaner energy
matrices.

added to growing emergent social
unrest, questioning electricity infrastructure expansion. The need is to
innovate in new supply technologies,
new environmental/social schemes,
and, specially, in good electricity
market design.
We thank the authors for their time
and dedication and the articles they've
provided and IEEE Power & Energy
Magazine for the opportunity to reflect
on and analyze such relevant matters
challenging future markets. Special
congratulations to Editor Mel Olken
for his continuous 13 years of service,
transforming the magazine into the
flagship publication of the IEEE Power
& Energy Society, publishing highly
acclaimed articles written for and by
professionals, representing the full
spectrum of power and energy across
the world.
p&e

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