Advanced Search
MyIDEAS: Login to save this paper or follow this series

Electricity generation cost in isolated system: the complementarities of natural gas and renewables in the Canary Islands

Contents:

Author Info

  • Gustavo A. Marrero
  • Francisco Javier Ramos-Real

Abstract

The Canary Islands offer an example of an isolated electric grid of relative important size within the EU. Due to its peculiarities, the role of renewable energies and their complementarity with fossil fuels offers a solid path to achieving the main energy policy goals of the Islands. The purpose of this paper is to assess the current situation and the energy objectives proposed in the Energy Plan of the Canaries (PECAN 2006) for the electricity industry, taking into account the average cost and the risk associated with the different alternatives for generating electricity by means of the Mean-Variance Portfolio Theory. Our analysis highlights the inefficiency of the current electricity generating mix in terms of cost, risk and lack of diversification. Shifting toward an efficient system would involve optimizing the use of endogenous energy sources and introducing natural gas to generate electricity. This scenario would mean reducing both cost and risk by almost 30% each, as well as atmospheric CO2 emissions. Our results agree with the PECAN philosophy.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://documentos.fedea.net/pubs/dt/2010/dt-2010-17.pdf
Download Restriction: no

Bibliographic Info

Paper provided by FEDEA in its series Working Papers with number 2010-17.

as in new window
Length:
Date of creation: Jun 2010
Date of revision:
Handle: RePEc:fda:fdaddt:2010-17

Contact details of provider:
Web page: http://www.fedea.net

Related research

Keywords:

Other versions of this item:

This paper has been announced in the following NEP Reports:

References

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
as in new window
  1. Muñoz, José Ignacio & Sánchez de la Nieta, Agustín A. & Contreras, Javier & Bernal-Agustín, José L., 2009. "Optimal investment portfolio in renewable energy: The Spanish case," Energy Policy, Elsevier, Elsevier, vol. 37(12), pages 5273-5284, December.
  2. Perez, Yannick & Ramos Real, Francisco Javier, 2008. "How to make a European integrated market in small and isolated electricity systems? The case of the Canary Islands," Energy Policy, Elsevier, Elsevier, vol. 36(11), pages 4159-4167, November.
  3. Perez, Yannick & Ramos-Real, Francisco Javier, 2009. "The public promotion of wind energy in Spain from the transaction costs perspective 1986-2007," Renewable and Sustainable Energy Reviews, Elsevier, Elsevier, vol. 13(5), pages 1058-1066, June.
  4. Ramos-Real, Francisco Javier & Moreno-Piquero, Juan Carlos & Ramos-Henriquez, Jose Manuel, 2007. "The effects of introducing natural gas in the Canary Islands for electricity generation," Energy Policy, Elsevier, Elsevier, vol. 35(7), pages 3925-3935, July.
Full references (including those not matched with items on IDEAS)

Citations

Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
as in new window

Cited by:
  1. Edmar Luiz Fagundes De Almeida & Luciano Losekann & Gustavo Marreiro & Francisco Javier Ramos-Real, 2014. "Efficient Power Generating Portfolio Inbrazil: Conciliating Cost, Emissions And Risk," Anais do XL Encontro Nacional de Economia [Proceedings of the 40th Brazilian Economics Meeting], ANPEC - Associação Nacional dos Centros de Pósgraduação em Economia [Brazilian Association of Grad 134, ANPEC - Associação Nacional dos Centros de Pósgraduação em Economia [Brazilian Association of Graduate Programs in Economics].
  2. Gustavo A. Marrero & Luis A. Puch & Francisco Javier Ramos-Real, 2010. "Riesgo y costes medios en la generación de electricidad: diversificación e implicaciones de política energética," Economic Reports 13-2010, FEDEA.
  3. Vincent Rious & Yannick Perez, 2012. "What type(s) of support schemes for storage in island power systems?," RSCAS Working Papers, European University Institute 2012/70, European University Institute.
  4. Yuan-Zhang Sun & Jin Lin & Yong-Hua Song & Jian Xu & Xiao-Ming Li & Jian-Xun Dong, 2012. "An Industrial System Powered by Wind and Coal for Aluminum Production: A Case Study of Technical Demonstration and Economic Feasibility," Energies, MDPI, Open Access Journal, vol. 5(11), pages 4844-4869, November.

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:fda:fdaddt:2010-17. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Carmen Arias).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.