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Market and Economic Modelling of the Intelligent Grid: Interim Report 2011

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Author Info

  • John Foster

    ()
    (Department of Economics, University of Queensland)

  • Liam Wagner

    ()
    (Department of Economics, University of Queensland)

  • Phil Wild

    ()
    (Department of Economics, University of Queensland)

  • William Paul Bell

    ()
    (Department of Economics, University of Queensland)

  • Junhua Zhao

    (Department of Economics, University of Queensland)

  • Craig Froome

    ()

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/11.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 11.

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Date of creation: Dec 2011
Date of revision:
Handle: RePEc:qld:uqeemg:11

Contact details of provider:
Postal: St. Lucia, Qld. 4072
Phone: +61 7 3365 6570
Fax: +61 7 3365 7299
Email:
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. Dale, Lewis & Milborrow, David & Slark, Richard & Strbac, Goran, 2004. "Total cost estimates for large-scale wind scenarios in UK," Energy Policy, Elsevier, vol. 32(17), pages 1949-1956, November.
  2. Gulli, Francesco, 2006. "Small distributed generation versus centralised supply: a social cost-benefit analysis in the residential and service sectors," Energy Policy, Elsevier, vol. 34(7), pages 804-832, May.
  3. Carley, Sanya, 2009. "Distributed generation: An empirical analysis of primary motivators," Energy Policy, Elsevier, vol. 37(5), pages 1648-1659, May.
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Citations

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Cited by:
  1. Bell, William Paul, 2012. "The impact of climate change on generation and transmission in the Australian national electricity market," MPRA Paper 38111, University Library of Munich, Germany, revised 29 Feb 2012.
  2. John Foster & William Paul Bell & Craig Froome & Phil Wild & Liam Wagner & Deepak Sharma & Suwin Sandu & Suchi Misra & Ravindra Bagia, 2012. "Institutional adaptability to redress electricity infrastructure vulnerability due to climate change," Energy Economics and Management Group Working Papers 7-2012, School of Economics, University of Queensland, Australia.
  3. Bell, William, 2012. "Reviewing the climate change adaptation readiness of the Australian national electricity market institutions," MPRA Paper 38112, University Library of Munich, Germany, revised 29 Feb 2012.
  4. Bell, William & Foster, John, 2012. "Feed-in tariffs for promoting solar PV: progressing from dynamic to allocative efficiency," MPRA Paper 38861, University Library of Munich, Germany, revised 28 Apr 2012.

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