IDEAS home Printed from https://ideas.repec.org/a/aea/aecrev/v101y2011i3p238-41.html
   My bibliography  Save this article

Comparing the Costs of Intermittent and Dispatchable Electricity Generating Technologies

Author

Listed:
  • Paul L. Joskow

Abstract

Economic evaluations of alternative electric generating technologies typically rely on comparisons between their expected "levelized cost" per MWh supplied. I demonstrate that this metric is inappropriate for comparing intermittent generating technologies like wind and solar with dispatchable generating technologies like nuclear, gas combined cycle, and coal. It overvalues intermittent generating technologies compared to dispatchable base load generating technologies. It also likely overvalues wind generating technologies compared to solar generating technologies. Integrating differences in production profiles, the associated variations in wholesale market prices of electricity, and life-cycle costs associated with different generating technologies is necessary to provide meaningful comparisons between them.

Suggested Citation

  • Paul L. Joskow, 2011. "Comparing the Costs of Intermittent and Dispatchable Electricity Generating Technologies," American Economic Review, American Economic Association, vol. 101(3), pages 238-241, May.
  • Handle: RePEc:aea:aecrev:v:101:y:2011:i:3:p:238-41
    as

    Download full text from publisher

    File URL: http://www.aeaweb.org/articles.php?doi=10.1257/aer.101.3.238
    Download Restriction: Access to full text is restricted to AEA members and institutional subscribers.
    ---><---

    As the access to this document is restricted, you may want to look for a different version below or search for a different version of it.

    Other versions of this item:

    References listed on IDEAS

    as
    1. Timothy D. Mount, Surin Maneevitjit, Alberto J. Lamadrid, Ray D. Zimmerman, and Robert J. Thomas, 2012. "The Hidden System Costs of Wind Generation in a Deregulated Electricity Market," The Energy Journal, International Association for Energy Economics, vol. 0(Number 1).
    2. Boccard, Nicolas, 2009. "Capacity factor of wind power realized values vs. estimates," Energy Policy, Elsevier, vol. 37(7), pages 2679-2688, July.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Boccard, Nicolas, 2014. "The cost of nuclear electricity: France after Fukushima," Energy Policy, Elsevier, vol. 66(C), pages 450-461.
    2. Sonja Germer & Axel Kleidon, 2019. "Have wind turbines in Germany generated electricity as would be expected from the prevailing wind conditions in 2000-2014?," PLOS ONE, Public Library of Science, vol. 14(2), pages 1-16, February.
    3. Ioannidis, Romanos & Koutsoyiannis, Demetris, 2020. "A review of land use, visibility and public perception of renewable energy in the context of landscape impact," Applied Energy, Elsevier, vol. 276(C).
    4. Knopf, Brigitte & Nahmmacher, Paul & Schmid, Eva, 2015. "The European renewable energy target for 2030 – An impact assessment of the electricity sector," Energy Policy, Elsevier, vol. 85(C), pages 50-60.
    5. Daraeepour, Ali & Patino-Echeverri, Dalia & Conejo, Antonio J., 2019. "Economic and environmental implications of different approaches to hedge against wind production uncertainty in two-settlement electricity markets: A PJM case study," Energy Economics, Elsevier, vol. 80(C), pages 336-354.
    6. Hanson, Donald & Schmalzer, David & Nichols, Christopher & Balash, Peter, 2016. "The impacts of meeting a tight CO2 performance standard on the electric power sector," Energy Economics, Elsevier, vol. 60(C), pages 476-485.
    7. Marques, António Cardoso & Fuinhas, José Alberto & Neves, Sónia Almeida, 2018. "Ordinary and Special Regimes of electricity generation in Spain: How they interact with economic activity," Renewable and Sustainable Energy Reviews, Elsevier, vol. 81(P1), pages 1226-1240.
    8. Rusu, Eugen & Onea, Florin, 2019. "An assessment of the wind and wave power potential in the island environment," Energy, Elsevier, vol. 175(C), pages 830-846.
    9. de Castro, Carlos & Mediavilla, Margarita & Miguel, Luis Javier & Frechoso, Fernando, 2011. "Global wind power potential: Physical and technological limits," Energy Policy, Elsevier, vol. 39(10), pages 6677-6682, October.
    10. Andreas Gerster, 2016. "Negative price spikes at power markets: the role of energy policy," Journal of Regulatory Economics, Springer, vol. 50(3), pages 271-289, December.
    11. Hirth, Lion & Ueckerdt, Falko, 2013. "Redistribution effects of energy and climate policy: The electricity market," Energy Policy, Elsevier, vol. 62(C), pages 934-947.
    12. Akdag, Seyit Ahmet & Güler, Önder, 2010. "Evaluation of wind energy investment interest and electricity generation cost analysis for Turkey," Applied Energy, Elsevier, vol. 87(8), pages 2574-2580, August.
    13. Tsilingiridis, G. & Sidiropoulos, C. & Pentaliotis, A., 2011. "Reduction of air pollutant emissions using renewable energy sources for power generation in Cyprus," Renewable Energy, Elsevier, vol. 36(12), pages 3292-3296.
    14. Lamadrid, Alberto J. & Mount, Tim, 2012. "Ancillary services in systems with high penetrations of renewable energy sources, the case of ramping," Energy Economics, Elsevier, vol. 34(6), pages 1959-1971.
    15. Dalby, Peder A.O. & Gillerhaugen, Gisle R. & Hagspiel, Verena & Leth-Olsen, Tord & Thijssen, Jacco J.J., 2018. "Green investment under policy uncertainty and Bayesian learning," Energy, Elsevier, vol. 161(C), pages 1262-1281.
    16. Galetovic, Alexander & Muñoz, Cristián M., 2013. "Wind, coal, and the cost of environmental externalities," Energy Policy, Elsevier, vol. 62(C), pages 1385-1391.
    17. Marques, António Cardoso & Fuinhas, José Alberto & Menegaki, Angeliki N., 2014. "Interactions between electricity generation sources and economic activity in Greece: A VECM approach," Applied Energy, Elsevier, vol. 132(C), pages 34-46.
    18. Christian Brannstrom & Mary Tilton & Andrew Klein & Wendy Jepson, 2015. "Spatial Distribution of Estimated Wind-Power Royalties in West Texas," Land, MDPI, Open Access Journal, vol. 4(4), pages 1-18, December.
    19. Boccard, Nicolas, 2010. "Economic properties of wind power: A European assessment," Energy Policy, Elsevier, vol. 38(7), pages 3232-3244, July.
    20. Ulazia, Alain & Sáenz, Jon & Ibarra-Berastegi, Gabriel & González-Rojí, Santos J. & Carreno-Madinabeitia, Sheila, 2019. "Global estimations of wind energy potential considering seasonal air density changes," Energy, Elsevier, vol. 187(C).

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:aea:aecrev:v:101:y:2011:i:3:p:238-41. 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: . General contact details of provider: https://edirc.repec.org/data/aeaaaea.html .

    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 CitEc recognized a bibliographic reference but did not link an item in RePEc 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Michael P. Albert (email available below). General contact details of provider: https://edirc.repec.org/data/aeaaaea.html .

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

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.