IDEAS home Printed from https://ideas.repec.org/a/eee/enepol/v168y2022ics0301421522003238.html
   My bibliography  Save this article

Medium-term assessment of cross border trading potential of Nepal's renewable energy using TIMES energy system optimization platform

Author

Listed:
  • Aryal, Sushil
  • Dhakal, Shobhakar

Abstract

Hydropower holds the largest renewable share in global electricity supply and will remain as a key technology for greenhouse gas mitigation in future. Rapid deployment of hydropower projects without storage has created the risks of hydropower generation far exceeding electricity demand in coming years in Nepal. This paper attempts to assess the volume of such surplus energy by proposing the Integrated MARKAL-EFOM System (TIMES) based framework suitable to estimate excess energy in renewable predominated system with detailed representation of hydropower. This study presents surplus renewable generation as Cross Border Electricity Trade (CBET) potential to show how instrumental CBET can be to avoid renewable energy curtailment with case study of Nepal. The results suggest Nepal not only can avoid 99.4 TWH of hydropower curtailment and financial loss of 500 billion Nepalese Rupees but also can reduce 81.5 million tons of CO2 equivalent emissions in India by 2030 using CBET policy instrument, however, timely construction of planned cross-border transmission lines is essential to reap the full benefits.

Suggested Citation

  • Aryal, Sushil & Dhakal, Shobhakar, 2022. "Medium-term assessment of cross border trading potential of Nepal's renewable energy using TIMES energy system optimization platform," Energy Policy, Elsevier, vol. 168(C).
    • Handle: RePEc:eee:enepol:v:168:y:2022:i:c:s0301421522003238
    DOI: 10.1016/j.enpol.2022.113098
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0301421522003238
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.enpol.2022.113098?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Gnansounou, Edgard & Bayem, Herman & Bednyagin, Denis & Dong, Jun, 2007. "Strategies for regional integration of electricity supply in West Africa," Energy Policy, Elsevier, vol. 35(8), pages 4142-4153, August.
    2. Lindberg, K.B. & Seljom, P. & Madsen, H. & Fischer, D. & Korpås, M., 2019. "Long-term electricity load forecasting: Current and future trends," Utilities Policy, Elsevier, vol. 58(C), pages 102-119.
    3. James Feyrer & Erin T. Mansur & Bruce Sacerdote, 2017. "Geographic Dispersion of Economic Shocks: Evidence from the Fracking Revolution," American Economic Review, American Economic Association, vol. 107(4), pages 1313-1334, April.
    4. Després, Jacques & Hadjsaid, Nouredine & Criqui, Patrick & Noirot, Isabelle, 2015. "Modelling the impacts of variable renewable sources on the power sector: Reconsidering the typology of energy modelling tools," Energy, Elsevier, vol. 80(C), pages 486-495.
    5. Antweiler, Werner, 2016. "Cross-border trade in electricity," Journal of International Economics, Elsevier, vol. 101(C), pages 42-51.
    6. repec:oup:qjecon:v:129:y:2013:i:1:p:275-331 is not listed on IDEAS
    7. Mayeda, A.M. & Boyd, A.D., 2020. "Factors influencing public perceptions of hydropower projects: A systematic literature review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 121(C).
    8. Yu, Xiaojiang, 2003. "Regional cooperation and energy development in the Greater Mekong Sub-region," Energy Policy, Elsevier, vol. 31(12), pages 1221-1234, September.
    9. Rogers, J. Scott & Rowse, John G., 1989. "Canadian interregional electricity trade : Analysing the gains from system integration during 1990-2020," Energy Economics, Elsevier, vol. 11(2), pages 105-118, April.
    10. Timilsina, Govinda R. & Toman, Mike, 2016. "Potential gains from expanding regional electricity trade in South Asia," Energy Economics, Elsevier, vol. 60(C), pages 6-14.
    11. Richard G. Newell & Daniel Raimi, 2015. "Shale Public Finance: Local Government Revenues and Costs Associated with Oil and Gas Development," NBER Working Papers 21542, National Bureau of Economic Research, Inc.
    12. Agostini, Claudio A. & Guzmán, Andrés M. & Nasirov, Shahriyar & Silva, Carlos, 2019. "A surplus based framework for cross-border electricity trade in South America," Energy Policy, Elsevier, vol. 128(C), pages 673-684.
    13. Enrico Moretti, 2014. "Local Economic Development, Agglomeration Economies, and the Big Push: 100 Years of Evidence from the Tennessee Valley Authority," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 129(1), pages 275-331.
    14. Mertens, Tim & Poncelet, Kris & Duerinck, Jan & Delarue, Erik, 2020. "Representing cross-border trade of electricity in long-term energy-system optimization models with a limited geographical scope," Applied Energy, Elsevier, vol. 261(C).
    15. Helgesen, Per Ivar & Lind, Arne & Ivanova, Olga & Tomasgard, Asgeir, 2018. "Using a hybrid hard-linked model to analyze reduced climate gas emissions from transport," Energy, Elsevier, vol. 156(C), pages 196-212.
    16. Bowen, Brian H. & Sparrow, F. T. & Yu, Zuwei, 1999. "Modeling electricity trade policy for the twelve nations of the Southern African Power Pool (SAPP)," Utilities Policy, Elsevier, vol. 8(3), pages 183-197, September.
    17. Timilsina,Govinda R. & Sapkota,Prakash Raj & Steinbuks,Jevgenijs, 2018. "How much has Nepal lost in the last decade due to load shedding? an economic assessment using a CGE model," Policy Research Working Paper Series 8468, The World Bank.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. An, Kangxin & Wang, Can & Cai, Wenjia, 2023. "Low-carbon technology diffusion and economic growth of China: an evolutionary general equilibrium framework," Structural Change and Economic Dynamics, Elsevier, vol. 65(C), pages 253-263.
    2. Marios Stanitsas & Konstantinos Kirytopoulos, 2023. "Sustainable Energy Strategies for Power Purchase Agreements (PPAs)," Sustainability, MDPI, vol. 15(8), pages 1-19, April.
    3. Aryal, Sushil & Dhakal, Shobhakar & KC, Samrat, 2023. "Integrated analysis of end-use electrification and cross-border electricity trade policies for hydropower enabled energy transformation in Nepal," Renewable Energy, Elsevier, vol. 219(P1).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Timilsina,Govinda R. & Toman,Michael A. & Karacsonyi,Jorge G. & de Tena Diego,Luca, 2015. "How much could South Asia benefit from regional electricity cooperation and trade ?," Policy Research Working Paper Series 7341, The World Bank.
    2. Timilsina, Govinda R. & Toman, Mike, 2016. "Potential gains from expanding regional electricity trade in South Asia," Energy Economics, Elsevier, vol. 60(C), pages 6-14.
    3. Timilsina,Govinda R. & Deluque Curiel,Ilka Fabiana & Chattopadhyay,Debabrata, 2021. "How Much Does Latin America Gain from Enhanced Cross-Border Electricity Trade in the Short Run ?," Policy Research Working Paper Series 9692, The World Bank.
    4. Gyanwali, Khem & Komiyama, Ryoichi & Fujii, Yasumasa, 2020. "Representing hydropower in the dynamic power sector model and assessing clean energy deployment in the power generation mix of Nepal," Energy, Elsevier, vol. 202(C).
    5. Watcharejyothin, Mayurachat & Shrestha, Ram M., 2009. "Regional energy resource development and energy security under CO2 emission constraint in the greater Mekong sub-region countries (GMS)," Energy Policy, Elsevier, vol. 37(11), pages 4428-4441, November.
    6. Valickova, Petra & Elms, Nicholas, 2021. "The costs of providing access to electricity in selected countries in Sub-Saharan Africa and policy implications," Energy Policy, Elsevier, vol. 148(PA).
    7. de Faria, Felipe A.M. & Davis, Alex & Severnini, Edson & Jaramillo, Paulina, 2017. "The local socio-economic impacts of large hydropower plant development in a developing country," Energy Economics, Elsevier, vol. 67(C), pages 533-544.
    8. Aryal, Sushil & Dhakal, Shobhakar & KC, Samrat, 2023. "Integrated analysis of end-use electrification and cross-border electricity trade policies for hydropower enabled energy transformation in Nepal," Renewable Energy, Elsevier, vol. 219(P1).
    9. Østergaard, P.A. & Lund, H. & Thellufsen, J.Z. & Sorknæs, P. & Mathiesen, B.V., 2022. "Review and validation of EnergyPLAN," Renewable and Sustainable Energy Reviews, Elsevier, vol. 168(C).
    10. Katie Jo Black & Shawn J. McCoy & Jeremy G. Weber, 2018. "When Externalities Are Taxed: The Effects and Incidence of Pennsylvania’s Impact Fee on Shale Gas Wells," Journal of the Association of Environmental and Resource Economists, University of Chicago Press, vol. 5(1), pages 107-153.
    11. Becker, Sascha O. & Heblich, Stephan & Sturm, Daniel M., 2021. "The impact of public employment: Evidence from Bonn," Journal of Urban Economics, Elsevier, vol. 122(C).
    12. Ochoa, Camila & Dyner, Isaac & Franco, Carlos J., 2013. "Simulating power integration in Latin America to assess challenges, opportunities, and threats," Energy Policy, Elsevier, vol. 61(C), pages 267-273.
    13. Pelzl, Paul & Poelhekke, Steven, 2021. "Good mine, bad mine: Natural resource heterogeneity and Dutch disease in Indonesia," Journal of International Economics, Elsevier, vol. 131(C).
    14. Sanoh, Aly & Kocaman, Ayse Selin & Kocal, Selcuk & Sherpa, Shaky & Modi, Vijay, 2014. "The economics of clean energy resource development and grid interconnection in Africa," Renewable Energy, Elsevier, vol. 62(C), pages 598-609.
    15. Ringkjøb, Hans-Kristian & Haugan, Peter M. & Seljom, Pernille & Lind, Arne & Wagner, Fabian & Mesfun, Sennai, 2020. "Short-term solar and wind variability in long-term energy system models - A European case study," Energy, Elsevier, vol. 209(C).
    16. Jha, Amit Prakash & Mahajan, Aarushi & Singh, Sanjay Kumar & Kumar, Piyush, 2022. "Renewable energy proliferation for sustainable development: Role of cross-border electricity trade," Renewable Energy, Elsevier, vol. 201(P1), pages 1189-1199.
    17. Watcharejyothin, Mayurachat & Shrestha, Ram M., 2009. "Effects of cross-border power trade between Laos and Thailand: Energy security and environmental implications," Energy Policy, Elsevier, vol. 37(5), pages 1782-1792, May.
    18. Chang, Miguel & Thellufsen, Jakob Zink & Zakeri, Behnam & Pickering, Bryn & Pfenninger, Stefan & Lund, Henrik & Østergaard, Poul Alberg, 2021. "Trends in tools and approaches for modelling the energy transition," Applied Energy, Elsevier, vol. 290(C).
    19. Costa, Francisco J M & Szerman, Dimitri & Assunção, Juliano, 2018. "Local Economic Impacts of Hydroelectric Power Plants: Evidence from Brazil," SocArXiv kzhs6, Center for Open Science.
    20. Nepal, Rabindra & Paija, Nirash, 2019. "Energy security, electricity, population and economic growth: The case of a developing South Asian resource-rich economy," Energy Policy, Elsevier, vol. 132(C), pages 771-781.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:enepol:v:168:y:2022:i:c:s0301421522003238. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/enpol .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.