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Renewable energy and its impact on thermal generation

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  • Graf, Christoph
  • Marcantonini, Claudio

Abstract

Electricity production from renewable sources generally displaces thermal generation, which leads to lower CO2 emissions in the power sector. However, the intermittent nature of many renewable technologies in combination with less residual demand leads to greater inefficiencies in the operation of existing fossil power plants. This inefficiency translates into a higher rate of emissions relative to output. In this paper we focus on Italian power installations between 2005 and 2014. Using panel econometrics, we show that a 10% increase in photovoltaics and wind infeed has reduced yearly CO2 emissions of the average thermal installation by about 2% while the average plants emissions relative to its output have increased by about 0.3%.

Suggested Citation

  • Graf, Christoph & Marcantonini, Claudio, 2017. "Renewable energy and its impact on thermal generation," Energy Economics, Elsevier, vol. 66(C), pages 421-430.
    • Handle: RePEc:eee:eneeco:v:66:y:2017:i:c:p:421-430
    DOI: 10.1016/j.eneco.2017.07.009
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    8. Haxhimusa, Adhurim, 2018. "The Effects of German Wind and Solar Electricity on French Spot Price Volatility: An Empirical Investigation," Department of Economics Working Paper Series 258, WU Vienna University of Economics and Business.
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    More about this item

    Keywords

    Emission factors; Load-cycling; Inefficiency;
    All these keywords.

    JEL classification:

    • L94 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Electric Utilities
    • Q40 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - General
    • Q41 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Demand and Supply; Prices
    • Q42 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Alternative Energy Sources
    • Q51 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Valuation of Environmental Effects
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming

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