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Implications of environmental regulation and coal plant retirements in systems with large scale penetration of wind power

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  • Rahmani, Mohsen
  • Jaramillo, Paulina
  • Hug, Gabriela

Abstract

Over the last decade there have been a growing number of federal and state regulations aimed at controlling air emissions at power plants and/or increasing the penetration of renewable resources in the grid. Environmental Protection Agency regulations will likely lead to the retrofit, retirement, or replacement of coal-fired power plants while the state Renewable Portfolio Standards will continue to drive large-scale deployment of renewable energy sources, primarily wind. Combined, these changes in the generation fleet could have profound implications for the operations of the power system. In this paper, we aim to better understand the interaction between coal plant retirements and increased levels of wind power. We extensively analyze the operations of the PJM electricity system under a broad set of scenarios that include varying levels of wind penetration and coal plant retirements. Not surprisingly, we find that without transmission upgrades, retirement of coal-fired power plants will likely result in considerable transmission congestion and higher energy prices. Increased wind penetration, with high geographic diversity, could mitigate some of the negative effects of coal plant retirement and lead to a significant reduction in air emissions, but wind forecast error might impose operational constraints on the system at times of peak load.

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  • Rahmani, Mohsen & Jaramillo, Paulina & Hug, Gabriela, 2016. "Implications of environmental regulation and coal plant retirements in systems with large scale penetration of wind power," Energy Policy, Elsevier, vol. 95(C), pages 196-210.
    • Handle: RePEc:eee:enepol:v:95:y:2016:i:c:p:196-210
    DOI: 10.1016/j.enpol.2016.04.015
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    References listed on IDEAS

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    1. Paul L. Joskow, 2012. "Creating a Smarter U.S. Electricity Grid," Journal of Economic Perspectives, American Economic Association, vol. 26(1), pages 29-48, Winter.
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    Cited by:

    1. Roth, Michael Buchdahl & Jaramillo, Paulina, 2017. "Going nuclear for climate mitigation: An analysis of the cost effectiveness of preserving existing U.S. nuclear power plants as a carbon avoidance strategy," Energy, Elsevier, vol. 131(C), pages 67-77.
    2. Reimers, Andrew & Cole, Wesley & Frew, Bethany, 2019. "The impact of planning reserve margins in long-term planning models of the electricity sector," Energy Policy, Elsevier, vol. 125(C), pages 1-8.
    3. Kotowicz, Janusz & Bartela, Łukasz & Węcel, Daniel & Dubiel, Klaudia, 2017. "Hydrogen generator characteristics for storage of renewably-generated energy," Energy, Elsevier, vol. 118(C), pages 156-171.
    4. Maamoun, Nada & Kennedy, Ryan & Jin, Xiaomeng & Urpelainen, Johannes, 2020. "Identifying coal-fired power plants for early retirement," Renewable and Sustainable Energy Reviews, Elsevier, vol. 126(C).

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