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The private and social economics of bulk electricity storage

Author

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  • Carson, Richard T.
  • Novan, Kevin

Abstract

The ability to store excess intermittent renewable electricity is increasingly being seen as a key option for integrating large quantities of renewable capacity. However, intermittent energy sources currently account for very small amounts of total generation. Despite this fact, policymakers have begun implementing requirements that will dramatically increase the amount of bulk storage capacity. This paper examines the social benefits provided by bulk storage in the Texas electricity market, which has a large amount of renewable capacity relative to other states, but still quite limited renewable penetration. We focus on the impact of arbitraging electricity across time—a major service of bulk storage. Using current storage technologies, we demonstrate that electricity arbitrage will increase daily CO2 emissions by an average of 0.19 tons for each MWh stored. In addition, daily SO2 emissions will increase by an average of 1.89pounds/MWh while NOX emissions will fall by an average of 0.15pounds/MWh.

Suggested Citation

  • Carson, Richard T. & Novan, Kevin, 2013. "The private and social economics of bulk electricity storage," Journal of Environmental Economics and Management, Elsevier, vol. 66(3), pages 404-423.
  • Handle: RePEc:eee:jeeman:v:66:y:2013:i:3:p:404-423
    DOI: 10.1016/j.jeem.2013.06.002
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    References listed on IDEAS

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    1. Ramteen Sioshansi & Paul Denholm, 2010. "The Value of Plug-In Hybrid Electric Vehicles as Grid Resources," The Energy Journal, International Association for Energy Economics, vol. 0(Number 3), pages 1-24.
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    7. Stephen P. Holland & Erin T. Mansur, 2008. "Is Real-Time Pricing Green? The Environmental Impacts of Electricity Demand Variance," The Review of Economics and Statistics, MIT Press, vol. 90(3), pages 550-561, August.
    8. Denholm, Paul & Sioshansi, Ramteen, 2009. "The value of compressed air energy storage with wind in transmission-constrained electric power systems," Energy Policy, Elsevier, vol. 37(8), pages 3149-3158, August.
    9. Swift-Hook, Donald T., 2010. "Grid-connected intermittent renewables are the last to be stored," Renewable Energy, Elsevier, vol. 35(9), pages 1967-1969.
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    Citations

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    Cited by:

    1. Lin, Boqiang & Wu, Wei, 2017. "Economic viability of battery energy storage and grid strategy: A special case of China electricity market," Energy, Elsevier, vol. 124(C), pages 423-434.
    2. Schill, Wolf-Peter, 2014. "Residual Load, Renewable Surplus Generation and Storage Requirements in Germany," EconStor Open Access Articles, ZBW - German National Library of Economics, pages 65-79.
    3. repec:eee:energy:v:143:y:2018:i:c:p:1-11 is not listed on IDEAS
    4. repec:eee:appene:v:210:y:2018:i:c:p:842-855 is not listed on IDEAS
    5. Zakeri, Behnam & Syri, Sanna, 2015. "Electrical energy storage systems: A comparative life cycle cost analysis," Renewable and Sustainable Energy Reviews, Elsevier, vol. 42(C), pages 569-596.
    6. repec:eee:jeeman:v:85:y:2017:i:c:p:205-227 is not listed on IDEAS
    7. repec:eee:eneeco:v:66:y:2017:i:c:p:421-430 is not listed on IDEAS
    8. J. Scott Holladay & Jacob LaRiviere, 2015. "The Impact of Cheap Natural Gas on Marginal Emissions from Electricity Generation and Implications for Energy," Working Papers 2015-07, University of Tennessee, Department of Economics.

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