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Renewable energy in the equilibrium mix of electricity supply sources

Author

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  • Faúndez, Pablo

Abstract

A method to derive the long-run supply curve for a given renewable energy source and technology is proposed. The method accounts for the spatial complexity arising from the distribution of the energy source and the energy transport infrastructure of the territory. The use of the resultant supply curve within the partial equilibrium competitive model for the design and evaluation of renewable energy support schemes and for the determination of optimal supply mixes is illustrated. A case study with the application of the method for wind energy in Rapa Nui (or Easter) Island is presented.

Suggested Citation

  • Faúndez, Pablo, 2017. "Renewable energy in the equilibrium mix of electricity supply sources," Energy Economics, Elsevier, vol. 67(C), pages 28-34.
    • Handle: RePEc:eee:eneeco:v:67:y:2017:i:c:p:28-34
    DOI: 10.1016/j.eneco.2017.07.015
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    More about this item

    Keywords

    Support schemes; Renewable energy; Supply curve; Partial equilibrium; ISOPROFIT model;
    All these keywords.

    JEL classification:

    • Q41 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Demand and Supply; Prices
    • Q42 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Alternative Energy Sources
    • Q47 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy Forecasting
    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
    • C60 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - General

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