{"title":"Smoothing the curve: An estimation of the cost of demand variation and the impact of solar and wind","authors":"Alexander Hill","doi":"10.1016/j.reseneeco.2022.101328","DOIUrl":null,"url":null,"abstract":"<div><p>Using electrification to decarbonize the energy sector potentially alters the pattern of electricity demand. This paper leverages a unique RTO-level, hourly dataset to identify the impact of exogenous changes in load on electricity supply costs. An increase in load variation of 5 % is associated with a 7.35 % increase in the cost of electricity supply. Higher solar and wind generation in a region is found to lower the cost of load variation, with solar having a more significant effect. (JEL Q41, Q49, L94).</p></div>","PeriodicalId":47952,"journal":{"name":"Resource and Energy Economics","volume":"70 ","pages":"Article 101328"},"PeriodicalIF":2.6000,"publicationDate":"2022-11-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"1","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"Resource and Energy Economics","FirstCategoryId":"96","ListUrlMain":"https://www.sciencedirect.com/science/article/pii/S0928765522000458","RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q1","JCRName":"ECONOMICS","Score":null,"Total":0}
引用次数: 1
Abstract
Using electrification to decarbonize the energy sector potentially alters the pattern of electricity demand. This paper leverages a unique RTO-level, hourly dataset to identify the impact of exogenous changes in load on electricity supply costs. An increase in load variation of 5 % is associated with a 7.35 % increase in the cost of electricity supply. Higher solar and wind generation in a region is found to lower the cost of load variation, with solar having a more significant effect. (JEL Q41, Q49, L94).
期刊介绍:
Resource and Energy Economics provides a forum for high level economic analysis of utilization and development of the earth natural resources. The subject matter encompasses questions of optimal production and consumption affecting energy, minerals, land, air and water, and includes analysis of firm and industry behavior, environmental issues and public policies. Implications for both developed and developing countries are of concern. The journal publishes high quality papers for an international audience. Innovative energy, resource and environmental analyses, including theoretical models and empirical studies are appropriate for publication in Resource and Energy Economics.