IDEAS home Printed from https://ideas.repec.org/a/sae/enejou/v39y2018i2p233-258.html
   My bibliography  Save this article

The cost of displacing fossil fuels: Some evidence from Texas

Author

Listed:
  • PeterR. Hartley

Abstract

Although technological progress can alter the relative costs of different energy sources, fossil fuels inevitably will be displaced as depletion raises their costs and makes them uncompetitive. They may be displaced sooner if they are taxed to internalize negative externalities. Currently, wind generation or nuclear power, supplemented by bulk electricity storage, are the most feasible alternatives to fossil fuels for electricity generation. The ERCOT ISO in Texas provides a realistic model for examining the costs of replacing fossil fuels by wind generation and storage, and for comparing wind power with generation based on nuclear and storage. ERCOT is relatively isolated from neighboring grids, and wind power was almost a quarter of its total generating capacity at the end of 2016. Using the ERCOT example, we also discuss how the long-run configuration of the electricity supply system affects evolution away from a system dominated by natural gas.

Suggested Citation

  • PeterR. Hartley, 2018. "The cost of displacing fossil fuels: Some evidence from Texas," The Energy Journal, , vol. 39(2), pages 233-258, March.
    • Handle: RePEc:sae:enejou:v:39:y:2018:i:2:p:233-258
    DOI: 10.5547/01956574.39.2.phar
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.5547/01956574.39.2.phar
    Download Restriction: no
    File URL: https://libkey.io/10.5547/01956574.39.2.phar?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
    ---><---

    References listed on IDEAS

    as
    1. Delucchi, Mark A. & Jacobson, Mark Z., 2011. "Providing all global energy with wind, water, and solar power, Part II: Reliability, system and transmission costs, and policies," Energy Policy, Elsevier, vol. 39(3), pages 1170-1190, March.
    2. Joseph A. Cullen & Erin T. Mansur, 2017. "Inferring Carbon Abatement Costs in Electricity Markets: A Revealed Preference Approach Using the Shale Revolution," American Economic Journal: Economic Policy, American Economic Association, vol. 9(3), pages 106-133, August.
    3. Luo, Xing & Wang, Jihong & Dooner, Mark & Clarke, Jonathan, 2015. "Overview of current development in electrical energy storage technologies and the application potential in power system operation," Applied Energy, Elsevier, vol. 137(C), pages 511-536.
    Full references (including those not matched with items on IDEAS)

    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. Jurasz, Jakub & Ciapała, Bartłomiej, 2017. "Integrating photovoltaics into energy systems by using a run-off-river power plant with pondage to smooth energy exchange with the power gird," Applied Energy, Elsevier, vol. 198(C), pages 21-35.
    2. Nasirov, Shahriyar & Agostini, Claudio A., 2018. "Mining experts' perspectives on the determinants of solar technologies adoption in the Chilean mining industry," Renewable and Sustainable Energy Reviews, Elsevier, vol. 95(C), pages 194-202.
    3. Yeh, Wei-Chang & He, Min-Fan & Huang, Chia-Ling & Tan, Shi-Yi & Zhang, Xianyong & Huang, Yaohong & Li, Li, 2020. "New genetic algorithm for economic dispatch of stand-alone three-modular microgrid in DongAo Island," Applied Energy, Elsevier, vol. 263(C).
    4. Guerra, Omar J. & Tejada, Diego A. & Reklaitis, Gintaras V., 2016. "An optimization framework for the integrated planning of generation and transmission expansion in interconnected power systems," Applied Energy, Elsevier, vol. 170(C), pages 1-21.
    5. Peter R. Hartley, 2018. "The Cost of Displacing Fossil Fuels: Some Evidence from Texas," The Energy Journal, International Association for Energy Economics, vol. 0(Number 2).
    6. Miklós Gyalai-Korpos & László Zentkó & Csaba Hegyfalvi & Gergely Detzky & Péter Tildy & Nóra Hegedűsné Baranyai & Gábor Pintér & Henrik Zsiborács, 2020. "The Role of Electricity Balancing and Storage: Developing Input Parameters for the European Calculator for Concept Modeling," Sustainability, MDPI, vol. 12(3), pages 1-26, January.
    7. Barry W. Brook & Tom Blees & Tom M. L. Wigley & Sanghyun Hong, 2018. "Silver Buckshot or Bullet: Is a Future “Energy Mix” Necessary?," Sustainability, MDPI, vol. 10(2), pages 1-14, January.
    8. Kubik, M.L. & Coker, P.J. & Hunt, C., 2012. "The role of conventional generation in managing variability," Energy Policy, Elsevier, vol. 50(C), pages 253-261.
    9. Yasemin Merzifonluoglu & Eray Uzgoren, 2018. "Photovoltaic power plant design considering multiple uncertainties and risk," Annals of Operations Research, Springer, vol. 262(1), pages 153-184, March.
    10. Chen, Long Xiang & Xie, Mei Na & Zhao, Pan Pan & Wang, Feng Xiang & Hu, Peng & Wang, Dong Xiang, 2018. "A novel isobaric adiabatic compressed air energy storage (IA-CAES) system on the base of volatile fluid," Applied Energy, Elsevier, vol. 210(C), pages 198-210.
    11. Miguel J. Prieto & Juan Á. Martínez & Rogelio Peón & Lourdes Á. Barcia & Fernando Nuño, 2017. "On the Convenience of Using Simulation Models to Optimize the Control Strategy of Molten-Salt Heat Storage Systems in Solar Thermal Power Plants," Energies, MDPI, vol. 10(7), pages 1-17, July.
    12. Wang, Longyi & Wu, Mei & Sun, Xiao & Gan, Zhihua, 2016. "A cascade pulse tube cooler capable of energy recovery," Applied Energy, Elsevier, vol. 164(C), pages 572-578.
    13. Doyle, Matthew & Fell, Harrison, 2018. "Fuel prices, restructuring, and natural gas plant operations," Resource and Energy Economics, Elsevier, vol. 52(C), pages 153-172.
    14. Chih-Ta Tsai & Teketay Mulu Beza & Wei-Bin Wu & Cheng-Chien Kuo, 2019. "Optimal Configuration with Capacity Analysis of a Hybrid Renewable Energy and Storage System for an Island Application," Energies, MDPI, vol. 13(1), pages 1-28, December.
    15. Majumder, Suman & De, Krishnarti & Kumar, Praveen & Sengupta, Bodhisattva & Biswas, Pabitra Kumar, 2021. "Techno-commercial analysis of sustainable E-bus-based public transit systems: An Indian case study," Renewable and Sustainable Energy Reviews, Elsevier, vol. 144(C).
    16. Cheayb, Mohamad & Marin Gallego, Mylène & Tazerout, Mohand & Poncet, Sébastien, 2022. "A techno-economic analysis of small-scale trigenerative compressed air energy storage system," Energy, Elsevier, vol. 239(PA).
    17. Ziad Ragab & Ehsan Pashajavid & Sumedha Rajakaruna, 2024. "Optimal Sizing and Economic Analysis of Community Battery Systems Considering Sensitivity and Uncertainty Factors," Energies, MDPI, vol. 17(18), pages 1-20, September.
    18. Blarke, Morten B., 2012. "Towards an intermittency-friendly energy system: Comparing electric boilers and heat pumps in distributed cogeneration," Applied Energy, Elsevier, vol. 91(1), pages 349-365.
    19. David Gattie & Michael Hewitt, 2023. "National Security as a Value-Added Proposition for Advanced Nuclear Reactors: A U.S. Focus," Energies, MDPI, vol. 16(17), pages 1-26, August.
    20. Andoni, Merlinda & Robu, Valentin & Flynn, David & Abram, Simone & Geach, Dale & Jenkins, David & McCallum, Peter & Peacock, Andrew, 2019. "Blockchain technology in the energy sector: A systematic review of challenges and opportunities," Renewable and Sustainable Energy Reviews, Elsevier, vol. 100(C), pages 143-174.

    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:sae:enejou:v:39:y:2018:i:2:p:233-258. 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: SAGE Publications (email available below). General contact details of provider: .

    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.