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Cost minimization of generation, storage, and new loads, comparing costs with and without externalities

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  • Noel, Lance
  • Brodie, Joseph F.
  • Kempton, Willett
  • Archer, Cristina L.
  • Budischak, Cory

Abstract

The goal of this research is to understand the economics of anticipated large-scale changes in the electric system. 86 million different combinations of renewable generation (wind and solar), natural gas, and three storage types (hydrogen storage, electric vehicles equipped with vehicle-to-grid (V2G) technology, and building heat) are modeled within the PJM Interconnection. The corresponding electric systems are then operated and constrained to meet the load every hour over four years. The total cost of each energy system is calculated, both with and without externalities, to find the least cost energy systems.

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  • Noel, Lance & Brodie, Joseph F. & Kempton, Willett & Archer, Cristina L. & Budischak, Cory, 2017. "Cost minimization of generation, storage, and new loads, comparing costs with and without externalities," Applied Energy, Elsevier, vol. 189(C), pages 110-121.
    • Handle: RePEc:eee:appene:v:189:y:2017:i:c:p:110-121
    DOI: 10.1016/j.apenergy.2016.12.060
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    6. Bessette, Douglas L. & Arvai, Joseph L., 2018. "Engaging attribute tradeoffs in clean energy portfolio development," Energy Policy, Elsevier, vol. 115(C), pages 221-229.
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    10. Zarazua de Rubens, Gerardo & Noel, Lance & Kester, Johannes & Sovacool, Benjamin K., 2020. "The market case for electric mobility: Investigating electric vehicle business models for mass adoption," Energy, Elsevier, vol. 194(C).
    11. Noel, Lance & Papu Carrone, Andrea & Jensen, Anders Fjendbo & Zarazua de Rubens, Gerardo & Kester, Johannes & Sovacool, Benjamin K., 2019. "Willingness to pay for electric vehicles and vehicle-to-grid applications: A Nordic choice experiment," Energy Economics, Elsevier, vol. 78(C), pages 525-534.
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    13. Huang, Bing & Meijssen, Aart Gerard & Annema, Jan Anne & Lukszo, Zofia, 2021. "Are electric vehicle drivers willing to participate in vehicle-to-grid contracts? A context-dependent stated choice experiment," Energy Policy, Elsevier, vol. 156(C).
    14. Garcia-Teruel, Anna & DuPont, Bryony & Forehand, David I.M., 2021. "Hull geometry optimisation of wave energy converters: On the choice of the objective functions and the optimisation formulation," Applied Energy, Elsevier, vol. 298(C).
    15. Sovacool, Benjamin K. & Kester, Johannes & Noel, Lance & Zarazua de Rubens, Gerardo, 2020. "Actors, business models, and innovation activity systems for vehicle-to-grid (V2G) technology: A comprehensive review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 131(C).
    16. Jesús Rodríguez-Molina & Pedro Castillejo & Victoria Beltran & Margarita Martínez-Núñez, 2020. "A Model for Cost–Benefit Analysis of Privately Owned Vehicle-to-Grid Solutions," Energies, MDPI, vol. 13(21), pages 1-38, November.
    17. Alabi, Oluwafisayo & Turner, Karen & Figus, Gioele & Katris, Antonios & Calvillo, Christian, 2020. "Can spending to upgrade electricity networks to support electric vehicles (EVs) roll-outs unlock value in the wider economy?," Energy Policy, Elsevier, vol. 138(C).
    18. Kumar Shalender & Naman Sharma, 2021. "Using extended theory of planned behaviour (TPB) to predict adoption intention of electric vehicles in India," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 23(1), pages 665-681, January.
    19. Pagnini, Luisa & Bracco, Stefano & Delfino, Federico & de-Simón-Martín, Miguel, 2024. "Levelized cost of electricity in renewable energy communities: Uncertainty propagation analysis," Applied Energy, Elsevier, vol. 366(C).
    20. Matsuo, Yuhji & Endo, Seiya & Nagatomi, Yu & Shibata, Yoshiaki & Komiyama, Ryoichi & Fujii, Yasumasa, 2018. "A quantitative analysis of Japan's optimal power generation mix in 2050 and the role of CO2-free hydrogen," Energy, Elsevier, vol. 165(PB), pages 1200-1219.
    21. Yuhji Matsuo, 2022. "Re-Defining System LCOE: Costs and Values of Power Sources," Energies, MDPI, vol. 15(18), pages 1-39, September.
    22. Zarazua de Rubens, Gerardo & Noel, Lance, 2019. "The non-technical barriers to large scale electricity networks: Analysing the case for the US and EU supergrids," Energy Policy, Elsevier, vol. 135(C).
    23. Noel, Lance & Zarazua de Rubens, Gerardo & Kester, Johannes & Sovacool, Benjamin K., 2019. "Navigating expert skepticism and consumer distrust: Rethinking the barriers to vehicle-to-grid (V2G) in the Nordic region," Transport Policy, Elsevier, vol. 76(C), pages 67-77.

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