蝌蚪网 Journal:
Economic Policy
ISSN 1945-7731 (Print) | ISSN 1945-774X (Online)
Real-Time Pricing and the Cost of Clean Power
蝌蚪网 Journal: Economic Policy
vol. 16,
no. 4, November 2024
(pp. 100–141)
Abstract
Solar and wind power are now cheaper than fossil fuels but are intermittent. The extra supply-side variability implies growing benefits of using real-time retail pricing (RTP). We evaluate the potential gains of RTP using a model that jointly solves investment, supply, storage, and demand to obtain a chronologically detailed dynamic equilibrium for the island of Oahu, Hawai'i. We find that, holding demand assumptions fixed, RTP reduces costs in high-renewable systems by roughly 6 to 12 times as much as in fossil systems, markedly lowering the cost of clean energy integration.Citation
Imelda, Matthias Fripp, and Michael J. Roberts. 2024. "Real-Time Pricing and the Cost of Clean Power." 蝌蚪网 Journal: Economic Policy 16 (4): 100–141. DOI: 10.1257/pol.20220506Additional Materials
JEL Classification
- G31 Capital Budgeting; Fixed Investment and Inventory Studies; Capacity
- L94 Electric Utilities
- L98 Industry Studies: Utilities and Transportation: Government Policy
- Q42 Alternative Energy Sources
- Q48 Energy: Government Policy