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Intermittent renewable electricity generation with smart grids

Author

Listed:
  • Prudence Dato

    (IREGE, University of Savoie)

  • Tun Durmaz

    (SEE, CityU Hong Kong and Econ. Dept., Yildiz Technical University)

  • Aude Pommeret

    (SEE, CityU Hong Kong and IREGE, University of Savoie)

Abstract

The aim of the paper is to analyse the efficient mix of investment in intermittent renewable energy and energy storage. The novelty of our model accrues from the flexibility it assigns to a household in feeding (resp. purchasing) electricity to (resp. from) the grid or store energy (or use stored energy) upon renewable energy installations. We study the consequences of demand side management by accounting for three levels of equipment in smart grids. The first level refers to the possibility to feed electricity to the grid that can simply be achieved by net metering. The second one concerns the installation of smart meters. The third level relates to energy storage. We analyse decisions concerning solar power and energy storage investments, and the consequences of energy storage and smart meters for electricity consumption and purchases of electricity from the grid. Additionally, we discuss the desirability of smart meter installation and study the implications of curtailment measures in avoiding congestion. Our results indicate that electricity prices need to be carefully contemplated when the objective is to rely less on the grid through smart grid deployment.

Suggested Citation

  • Prudence Dato & Tun Durmaz & Aude Pommeret, 2017. "Intermittent renewable electricity generation with smart grids," Working Papers 2017.09, FAERE - French Association of Environmental and Resource Economists.
    • Handle: RePEc:fae:wpaper:2017.09
    as

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    References listed on IDEAS

    as
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    More about this item

    Keywords

    Renewable energy; Intermittency; Distributed generation; Energy Storage; Demand response;
    All these keywords.

    JEL classification:

    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • D61 - Microeconomics - - Welfare Economics - - - Allocative Efficiency; Cost-Benefit Analysis
    • D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty
    • 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

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