IDEAS home Printed from https://ideas.repec.org/a/eee/energy/v254y2022ipcs0360544222012889.html
   My bibliography  Save this article

Using agricultural demand for reducing costs of renewable energy integration in India

Author

Listed:
  • Khanna, Tarun M.

Abstract

While demand response is recognized as a useful tool for integrating renewable electricity, the related literature in developing countries has been limited. Meanwhile, the literature on demand side management (DSM) has ignored the value of agricultural demand as a demand side resource for integration of renewable energy. This article fills the gap by collecting agricultural load data from two distribution utilities in the Indian state of Gujarat and using it in a mixed-integer linear programming model to estimate the flexibility provided by agricultural DSM to the power system. Using a flexible load representation, the model chooses the optimal periods for agricultural supply subject to the constraints of meeting the irrigation needs of farmers and the marginal cost of electricity. This analysis shows that management of agricultural demand already reduces system costs by 4% or USD 6.09 per MWh of agricultural consumption. Going forward, with high shares of solar generation, shifting agricultural demand to daytime hours increases system flexibility. It reduces renewables curtailment by 4–7%, limits cycling costs of coal power plants, and reduces system integration costs by 22%. Agricultural DSM could be a cost-effective flexibility option in developing countries where only the least-cost options are economically viable.

Suggested Citation

  • Khanna, Tarun M., 2022. "Using agricultural demand for reducing costs of renewable energy integration in India," Energy, Elsevier, vol. 254(PC).
    • Handle: RePEc:eee:energy:v:254:y:2022:i:pc:s0360544222012889
    DOI: 10.1016/j.energy.2022.124385
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0360544222012889
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.energy.2022.124385?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. Gils, Hans Christian, 2014. "Assessment of the theoretical demand response potential in Europe," Energy, Elsevier, vol. 67(C), pages 1-18.
    2. McDonagh, Shane & Wall, David M. & Deane, Paul & Murphy, Jerry D., 2019. "The effect of electricity markets, and renewable electricity penetration, on the levelised cost of energy of an advanced electro-fuel system incorporating carbon capture and utilisation," Renewable Energy, Elsevier, vol. 131(C), pages 364-371.
    3. Hirth, Lion & Ueckerdt, Falko & Edenhofer, Ottmar, 2015. "Integration costs revisited – An economic framework for wind and solar variability," Renewable Energy, Elsevier, vol. 74(C), pages 925-939.
    4. Arnaudo, Monica & Topel, Monika & Laumert, Björn, 2020. "Techno-economic analysis of demand side flexibility to enable the integration of distributed heat pumps within a Swedish neighborhood," Energy, Elsevier, vol. 195(C).
    5. Szinai, Julia K. & Sheppard, Colin J.R. & Abhyankar, Nikit & Gopal, Anand R., 2020. "Reduced grid operating costs and renewable energy curtailment with electric vehicle charge management," Energy Policy, Elsevier, vol. 136(C).
    6. Banerji, A. & Meenakshi, J.V. & Khanna, Gauri, 2012. "Social contracts, markets and efficiency: Groundwater irrigation in North India," Journal of Development Economics, Elsevier, vol. 98(2), pages 228-237.
    7. Ueckerdt, Falko & Hirth, Lion & Luderer, Gunnar & Edenhofer, Ottmar, 2013. "System LCOE: What are the costs of variable renewables?," Energy, Elsevier, vol. 63(C), pages 61-75.
    8. Lion Hirth, Falko Ueckerdt, and Ottmar Edenhofer, 2016. "Why Wind Is Not Coal: On the Economics of Electricity Generation," The Energy Journal, International Association for Energy Economics, vol. 0(Number 3).
    9. Pina, André & Silva, Carlos & Ferrão, Paulo, 2012. "The impact of demand side management strategies in the penetration of renewable electricity," Energy, Elsevier, vol. 41(1), pages 128-137.
    10. Novacheck, Joshua & Johnson, Jeremiah X., 2017. "Diversifying wind power in real power systems," Renewable Energy, Elsevier, vol. 106(C), pages 177-185.
    11. Cappers, Peter & Goldman, Charles & Kathan, David, 2010. "Demand response in U.S. electricity markets: Empirical evidence," Energy, Elsevier, vol. 35(4), pages 1526-1535.
    12. Kumar, Subhash & Madlener, Reinhard, 2016. "CO2 emission reduction potential assessment using renewable energy in India," Energy, Elsevier, vol. 97(C), pages 273-282.
    13. Hirth, Lion, 2013. "The market value of variable renewables," Energy Economics, Elsevier, vol. 38(C), pages 218-236.
    14. Michael Schoepf & Martin Weibelzahl & Lisa Nowka, 2018. "The Impact of Substituting Production Technologies on the Economic Demand Response Potential in Industrial Processes," Energies, MDPI, vol. 11(9), pages 1-13, August.
    15. McPherson, Madeleine & Stoll, Brady, 2020. "Demand response for variable renewable energy integration: A proposed approach and its impacts," Energy, Elsevier, vol. 197(C).
    16. Yang, Yulong & Wu, Kai & Long, Hongyu & Gao, Jianchao & Yan, Xu & Kato, Takeyoshi & Suzuoki, Yasuo, 2014. "Integrated electricity and heating demand-side management for wind power integration in China," Energy, Elsevier, vol. 78(C), pages 235-246.
    17. WorldFish, 2019. "Annual Report 2018," Monographs, The WorldFish Center, number 40826, April.
    18. Kumar, M. Dinesh, 2005. "Impact of electricity prices and volumetric water allocation on energy and groundwater demand management:: analysis from Western India," Energy Policy, Elsevier, vol. 33(1), pages 39-51, January.
    19. Hungerford, Zoe & Bruce, Anna & MacGill, Iain, 2019. "The value of flexible load in power systems with high renewable energy penetration," Energy, Elsevier, vol. 188(C).
    20. Dranka, Géremi Gilson & Ferreira, Paula, 2019. "Review and assessment of the different categories of demand response potentials," Energy, Elsevier, vol. 179(C), pages 280-294.
    21. Vashishtha, Sanjay & Ramachandran, M., 2006. "Multicriteria evaluation of demand side management (DSM) implementation strategies in the Indian power sector," Energy, Elsevier, vol. 31(12), pages 2210-2225.
    22. Guelpa, Elisa & Verda, Vittorio, 2021. "Demand response and other demand side management techniques for district heating: A review," Energy, Elsevier, vol. 219(C).
    23. O'Connell, Sarah & Reynders, Glenn & Keane, Marcus M., 2021. "Impact of source variability on flexibility for demand response," Energy, Elsevier, vol. 237(C).
    24. Olkkonen, Ville & Ekström, Jussi & Hast, Aira & Syri, Sanna, 2018. "Utilising demand response in the future Finnish energy system with increased shares of baseload nuclear power and variable renewable energy," Energy, Elsevier, vol. 164(C), pages 204-217.
    25. Meesenburg, Wiebke & Ommen, Torben & Elmegaard, Brian, 2018. "Dynamic exergoeconomic analysis of a heat pump system used for ancillary services in an integrated energy system," Energy, Elsevier, vol. 152(C), pages 154-165.
    26. Collins, Seán & Deane, J.P. & Ó Gallachóir, Brian, 2017. "Adding value to EU energy policy analysis using a multi-model approach with an EU-28 electricity dispatch model," Energy, Elsevier, vol. 130(C), pages 433-447.
    27. Bazilian, Morgan & Rogner, Holger & Howells, Mark & Hermann, Sebastian & Arent, Douglas & Gielen, Dolf & Steduto, Pasquale & Mueller, Alexander & Komor, Paul & Tol, Richard S.J. & Yumkella, Kandeh K., 2011. "Considering the energy, water and food nexus: Towards an integrated modelling approach," Energy Policy, Elsevier, vol. 39(12), pages 7896-7906.
    28. Wu, Wei & Lin, Boqiang, 2021. "Benefits of electric vehicles integrating into power grid," Energy, Elsevier, vol. 224(C).
    29. Fischer, David & Madani, Hatef, 2017. "On heat pumps in smart grids: A review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 70(C), pages 342-357.
    30. Deane, J.P. & Ó Ciaráin, M. & Ó Gallachóir, B.P., 2017. "An integrated gas and electricity model of the EU energy system to examine supply interruptions," Applied Energy, Elsevier, vol. 193(C), pages 479-490.
    31. Ram Fishman & Upmanu Lall & Vijay Modi & Nikunj Parekh, 2016. "Can Electricity Pricing Save India’s Groundwater? Field Evidence from a Novel Policy Mechanism in Gujarat," Journal of the Association of Environmental and Resource Economists, University of Chicago Press, vol. 3(4), pages 819-855.
    32. Lion Hirth, 2013. "The Market Value of Variable Renewables. The Effect of Solar and Wind Power Variability on their Relative Price," RSCAS Working Papers 2013/36, European University Institute.
    33. Yilmaz, Selin & Xu, Xiaojing & Cabrera, Daniel & Chanez, Cédric & Cuony, Peter & Patel, Martin K., 2020. "Analysis of demand-side response preferences regarding electricity tariffs and direct load control: Key findings from a Swiss survey," Energy, Elsevier, vol. 212(C).
    34. Huang, Sen & Ye, Yunyang & Wu, Di & Zuo, Wangda, 2021. "An assessment of power flexibility from commercial building cooling systems in the United States," Energy, Elsevier, vol. 221(C).
    35. Lakshmanan, Venkatachalam & Marinelli, Mattia & Kosek, Anna M. & Nørgård, Per B. & Bindner, Henrik W., 2016. "Impact of thermostatically controlled loads' demand response activation on aggregated power: A field experiment," Energy, Elsevier, vol. 94(C), pages 705-714.
    36. Shiljkut, Vladimir M. & Rajakovic, Nikola Lj., 2015. "Demand response capacity estimation in various supply areas," Energy, Elsevier, vol. 92(P3), pages 476-486.
    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. Zhang, Hui & Wang, Jiye & Zhao, Xiongwen & Yang, Jingqi & Bu sinnah, Zainab Ali, 2023. "Modeling a hydrogen-based sustainable multi-carrier energy system using a multi-objective optimization considering embedded joint chance constraints," Energy, Elsevier, vol. 278(C).

    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. O'Connell, Sarah & Reynders, Glenn & Keane, Marcus M., 2021. "Impact of source variability on flexibility for demand response," Energy, Elsevier, vol. 237(C).
    2. Zerrahn, Alexander, 2017. "Wind Power and Externalities," Ecological Economics, Elsevier, vol. 141(C), pages 245-260.
    3. Romeiro, Diogo Lisbona & Almeida, Edmar Luiz Fagundes de & Losekann, Luciano, 2020. "Systemic value of electricity sources – What we can learn from the Brazilian experience?," Energy Policy, Elsevier, vol. 138(C).
    4. Pietzcker, Robert C. & Ueckerdt, Falko & Carrara, Samuel & de Boer, Harmen Sytze & Després, Jacques & Fujimori, Shinichiro & Johnson, Nils & Kitous, Alban & Scholz, Yvonne & Sullivan, Patrick & Ludere, 2017. "System integration of wind and solar power in integrated assessment models: A cross-model evaluation of new approaches," Energy Economics, Elsevier, vol. 64(C), pages 583-599.
    5. Mowers, Matthew & Mignone, Bryan K. & Steinberg, Daniel C., 2023. "Quantifying value and representing competitiveness of electricity system technologies in economic models," Applied Energy, Elsevier, vol. 329(C).
    6. Klie, Leo & Madlener, Reinhard, 2022. "Optimal configuration and diversification of wind turbines: A hybrid approach to improve the penetration of wind power," Energy Economics, Elsevier, vol. 105(C).
    7. Li, Yanxue & Zhang, Xiaoyi & Gao, Weijun & Xu, Wenya & Wang, Zixuan, 2022. "Operational performance and grid-support assessment of distributed flexibility practices among residential prosumers under high PV penetration," Energy, Elsevier, vol. 238(PB).
    8. Soria, Rafael & Portugal-Pereira, Joana & Szklo, Alexandre & Milani, Rodrigo & Schaeffer, Roberto, 2015. "Hybrid concentrated solar power (CSP)–biomass plants in a semiarid region: A strategy for CSP deployment in Brazil," Energy Policy, Elsevier, vol. 86(C), pages 57-72.
    9. Reichenberg, Lina & Hedenus, Fredrik & Odenberger, Mikael & Johnsson, Filip, 2018. "The marginal system LCOE of variable renewables – Evaluating high penetration levels of wind and solar in Europe," Energy, Elsevier, vol. 152(C), pages 914-924.
    10. Matsuo, Yuhji & Endo, Seiya & Nagatomi, Yu & Shibata, Yoshiaki & Komiyama, Ryoichi & Fujii, Yasumasa, 2020. "Investigating the economics of the power sector under high penetration of variable renewable energies," Applied Energy, Elsevier, vol. 267(C).
    11. Wild, Phillip, 2017. "Determining commercially viable two-way and one-way ‘Contract-for-Difference’ strike prices and revenue receipts," Energy Policy, Elsevier, vol. 110(C), pages 191-201.
    12. Hirth, Lion, 2016. "The benefits of flexibility: The value of wind energy with hydropower," Applied Energy, Elsevier, vol. 181(C), pages 210-223.
    13. Philipp Beiter & Aubryn Cooperman & Eric Lantz & Tyler Stehly & Matt Shields & Ryan Wiser & Thomas Telsnig & Lena Kitzing & Volker Berkhout & Yuka Kikuchi, 2021. "Wind power costs driven by innovation and experience with further reductions on the horizon," Wiley Interdisciplinary Reviews: Energy and Environment, Wiley Blackwell, vol. 10(5), September.
    14. Khan, Agha Salman M. & Verzijlbergh, Remco A. & Sakinci, Ozgur Can & De Vries, Laurens J., 2018. "How do demand response and electrical energy storage affect (the need for) a capacity market?," Applied Energy, Elsevier, vol. 214(C), pages 39-62.
    15. Sascha Samadi, 2017. "The Social Costs of Electricity Generation—Categorising Different Types of Costs and Evaluating Their Respective Relevance," Energies, MDPI, vol. 10(3), pages 1-37, March.
    16. O’Reilly, Ryan & Cohen, Jed & Reichl, Johannes, 2024. "Achievable load shifting potentials for the European residential sector from 2022–2050," Renewable and Sustainable Energy Reviews, Elsevier, vol. 189(PB).
    17. Maximilian Parzen & Fabian Neumann & Addrian H. Van Der Weijde & Daniel Friedrich & Aristides Kiprakis, 2021. "Beyond cost reduction: Improving the value of energy storage in electricity systems," Papers 2101.10092, arXiv.org, revised Jul 2022.
    18. Javier L'opez Prol & Wolf-Peter Schill, 2020. "The Economics of Variable Renewables and Electricity Storage," Papers 2012.15371, arXiv.org.
    19. Ueckerdt, Falko & Pietzcker, Robert & Scholz, Yvonne & Stetter, Daniel & Giannousakis, Anastasis & Luderer, Gunnar, 2017. "Decarbonizing global power supply under region-specific consideration of challenges and options of integrating variable renewables in the REMIND model," Energy Economics, Elsevier, vol. 64(C), pages 665-684.
    20. Ruhnau, Oliver, 2022. "How flexible electricity demand stabilizes wind and solar market values: The case of hydrogen electrolyzers," Applied Energy, Elsevier, vol. 307(C).

    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:energy:v:254:y:2022:i:pc:s0360544222012889. 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.journals.elsevier.com/energy .

    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.