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Assessing the Impact of Renewable Energy Sources: Simulation analysis of the Japanese electricity market

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  • Keisuke YOSHIHARA
  • Hiroshi OHASHI

Abstract

This paper evaluates the impact of renewable energy (RE) sources on market outcomes in Japan. We develop a simulation model to compute the kWh-market equilibrium, and conduct simulation exercises for 2015 and 2030. Using scenarios proposed by the government, we find that the diffusion of RE sources would lower the kWh-market prices and greenhouse gases by reducing fossil fuel consumption in 2030. It would also mothball many of the thermal power plants, which were active and profitable in 2015.

Suggested Citation

  • Keisuke YOSHIHARA & Hiroshi OHASHI, 2017. "Assessing the Impact of Renewable Energy Sources: Simulation analysis of the Japanese electricity market," Discussion papers 17063, Research Institute of Economy, Trade and Industry (RIETI).
    • Handle: RePEc:eti:dpaper:17063
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    References listed on IDEAS

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    1. Steve Cicala, 2022. "Imperfect Markets versus Imperfect Regulation in US Electricity Generation," American Economic Review, American Economic Association, vol. 112(2), pages 409-441, February.
    2. Komiyama, Ryoichi & Fujii, Yasumasa, 2017. "Assessment of post-Fukushima renewable energy policy in Japan's nation-wide power grid," Energy Policy, Elsevier, vol. 101(C), pages 594-611.
    3. Keiji Saito & Shin-ichi Hanada & Hiroshi Ohashi, 2014. ""Large-scale Penetration of Solar PV in Japan: Simulation Analysis" (in Japanese)," CIRJE J-Series CIRJE-J-258, CIRJE, Faculty of Economics, University of Tokyo.
    4. Keiji Saito & Hiroshi Ohashi, 2015. ""Economic Evaluation of Power Source Mix: Simulation toward 2023" (in Japanese)," CIRJE J-Series CIRJE-J-269, CIRJE, Faculty of Economics, University of Tokyo.
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