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Market and Economic Modelling of the Intelligent Grid: 1st Interim Report 2009

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Author Info

  • John Foster

    ()
    (Department of Economics, University of Queensland)

  • Liam Wagner

    ()
    (Department of Economics, University of Queensland)

  • Ariel Liebman

    ()
    (Department of Economics, University of Queensland)

Abstract

The overall goal of Project 2 has been to provide a comprehensive understanding of the impacts of distributed energy (DG) on the Australian Electricity System. The research team at the UQ Energy Economics and Management Group (EEMG) has constructed a variety of sophisticated models to analyse the various impacts of significant increases in DG. These models stress that the spatial configuration of the grid really matters - this has tended to be neglected in economic discussions of the costs of DG relative to conventional, centralized power generation. The modelling also makes it clear that efficient storage systems will often be critical in solving transient stability problems on the grid as we move to the greater provision of renewable DG. We show that DG can help to defer of transmission investments in certain conditions. The existing grid structure was constructed with different priorities in mind and we show that its replacement can come at a prohibitive cost unless the capability of the local grid to accommodate DG is assessed very carefully.

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File URL: http://www.uq.edu.au/eemg/docs/workingpapers/08.pdf
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Bibliographic Info

Paper provided by School of Economics, University of Queensland, Australia in its series Energy Economics and Management Group Working Papers with number 08.

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Date of creation: Dec 2011
Date of revision:
Handle: RePEc:qld:uqeemg:08

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Postal: St. Lucia, Qld. 4072
Phone: +61 7 3365 6570
Fax: +61 7 3365 7299
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Web page: http://www.uq.edu.au/eemg
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Related research

Keywords: Distributed Generation. Energy Economics; Electricity Markets; Renewable Energy;

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References

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  1. Guido Pepermans & Johan Driesen & Dries Haeseldonckx, 2003. "Distributed generation: definition, benefits and issues," Energy, Transport and Environment Working Papers Series ete0308, Katholieke Universiteit Leuven, Centrum voor Economische Studiƫn, Energy, Transport and Environment.
  2. Huber, Claus & Ryan, Lisa & O Gallachoir, Brian & Resch, Gustav & Polaski, Katrina & Bazilian, Morgan, 2007. "Economic modelling of price support mechanisms for renewable energy: Case study on Ireland," Energy Policy, Elsevier, vol. 35(2), pages 1172-1185, February.
  3. Shum, Kwok L. & Watanabe, Chihiro, 2007. "Photovoltaic deployment strategy in Japan and the USA--an institutional appraisal," Energy Policy, Elsevier, vol. 35(2), pages 1186-1195, February.
  4. Drennen, Thomas E & Erickson, Jon D & Chapman, Duane, 1996. "Solar power and climate change policy in developing countries," Energy Policy, Elsevier, vol. 24(1), pages 9-16, January.
  5. Tsikalakis, A.G. & Hatziargyriou, N.D., 2007. "Environmental benefits of distributed generation with and without emissions trading," Energy Policy, Elsevier, vol. 35(6), pages 3395-3409, June.
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