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Power grid with 100% renewable energy for small island developing states

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  • Yuichi Ikeda

    (Kyoto University)

Abstract

We estimated system-wise levelized cost of electricity (LCOE) for a power grid with a high level of renewable energy using our grid optimization model. The estimation results of the system-wise LCOE are discussed in terms of the nexus of energy, environment, and economic growth for Small Island Developing States (SIDS) economies. While 100% renewable energy is technologically possible with the usage of electricity storage, the estimated LCOE is as high as 397 $/MWh which is substantially higher than electricity prices for residential consumers in the US and Japan. The susceptibility analyses imply that the estimated LCOE increase of 223% with a 100% renewable power grid corresponds to an as high as 11% decrease in economic growth. This decrease in economic growth would have a significant negative impact on SIDS economies. However, hydrogen production via the electrolysis of water using the excess energy supply from solar photovoltaics would reduce the LCOE, and therefore, higher economic growth would be attained with less $${\mathrm{CO}}_2$$CO2 emission.

Suggested Citation

  • Yuichi Ikeda, 2020. "Power grid with 100% renewable energy for small island developing states," Evolutionary and Institutional Economics Review, Springer, vol. 17(1), pages 183-195, January.
    • Handle: RePEc:spr:eaiere:v:17:y:2020:i:1:d:10.1007_s40844-019-00130-8
    DOI: 10.1007/s40844-019-00130-8
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    References listed on IDEAS

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    Cited by:

    1. Grażyna Szustak & Piotr Dąbrowski & Witold Gradoń & Łukasz Szewczyk, 2021. "The Relationship between Energy Production and GDP: Evidence from Selected European Economies," Energies, MDPI, vol. 15(1), pages 1-11, December.

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    More about this item

    Keywords

    Energy; Power grid; Renewable energy; Levelized cost of electricity; Economic growth;
    All these keywords.

    JEL classification:

    • Q40 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - General
    • F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies
    • Q50 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - General

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