IDEAS home Printed from https://ideas.repec.org/b/era/eriabk/2021-rpr-13.html
   My bibliography  Save this book

The Economics and Risks of Power Systems with High Shares of Renewable Energies

Editor

Listed:
  • Matsuo Yuji
  • Alloysius Joko Purwanto
    (Economic Research Institute for ASEAN and East Asia (ERIA))

  • Leong Siew Meng

Abstract

Using a mathematical model, this study examines the possibility and risks of realising high shares of variable renewable energies (VRE) through the planned extension of power grid interconnection in Southeast Asia. It arrives at three main conclusions. First, VRE will be diffused in the region only if people accept strong policy measures to combat climate change, such as feed-in tariff systems. Second, the currently planned grid interconnection expansion would increase power trade in the region, work as massive regional batteries, and help maximise the use of unevenly distributed hydropower resources. Third, the optimal energy mix may change with explicit consideration of higher fossil fuel prices, the health effects of fossil fuels, and economic development levels. Therefore, governments will need strong policy measures to promote renewable energies and power grid interconnection expansion. They need to consider other factors that may affect the optimal energy mix such as the VRE costs, international energy prices, externalities, and the nuclear utilisation and should seek other decarbonising options.

Suggested Citation

  • Matsuo Yuji & Alloysius Joko Purwanto & Leong Siew Meng (ed.), 2021. "The Economics and Risks of Power Systems with High Shares of Renewable Energies," Books, Economic Research Institute for ASEAN and East Asia (ERIA), number 2021-RPR-13, October.
    • Handle: RePEc:era:eriabk:2021-rpr-13
    as

    Download full text from publisher

    File URL: https://www.eria.org/uploads/media/Research-Project-Report/RPR_2021_13/The-Economics-and-Risks-of-Power-Systems-with-High-Shares-of-Renewable-Energies.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Komiyama, Ryoichi & Fujii, Yasumasa, 2017. "Assessment of post-Fukushima renewable energy policy in Japan's nation-wide power grid," Energy Policy, Elsevier, vol. 101(C), pages 594-611.
    2. Huber, Matthias & Roger, Albert & Hamacher, Thomas, 2015. "Optimizing long-term investments for a sustainable development of the ASEAN power system," Energy, Elsevier, vol. 88(C), pages 180-193.
    3. Staffell, Iain & Pfenninger, Stefan, 2016. "Using bias-corrected reanalysis to simulate current and future wind power output," Energy, Elsevier, vol. 114(C), pages 1224-1239.
    4. 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).
    5. Pfenninger, Stefan & Staffell, Iain, 2016. "Long-term patterns of European PV output using 30 years of validated hourly reanalysis and satellite data," Energy, Elsevier, vol. 114(C), pages 1251-1265.
    6. Eurek, Kelly & Sullivan, Patrick & Gleason, Michael & Hettinger, Dylan & Heimiller, Donna & Lopez, Anthony, 2017. "An improved global wind resource estimate for integrated assessment models," Energy Economics, Elsevier, vol. 64(C), pages 552-567.
    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. 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).
    2. Mayer, Martin János & Biró, Bence & Szücs, Botond & Aszódi, Attila, 2023. "Probabilistic modeling of future electricity systems with high renewable energy penetration using machine learning," Applied Energy, Elsevier, vol. 336(C).
    3. Tino Aboumahboub & Robert J. Brecha & Himalaya Bir Shrestha & Ursula Fuentes & Andreas Geiges & William Hare & Michiel Schaeffer & Lara Welder & Matthew J. Gidden, 2020. "Decarbonization of Australia’s Energy System: Integrated Modeling of the Transformation of Electricity, Transportation, and Industrial Sectors," Energies, MDPI, vol. 13(15), pages 1-39, July.
    4. de Guibert, Paul & Shirizadeh, Behrang & Quirion, Philippe, 2020. "Variable time-step: A method for improving computational tractability for energy system models with long-term storage," Energy, Elsevier, vol. 213(C).
    5. Marko Hočevar & Lovrenc Novak & Primož Drešar & Gašper Rak, 2022. "The Status Quo and Future of Hydropower in Slovenia," Energies, MDPI, vol. 15(19), pages 1-13, September.
    6. Lukas Kriechbaum & Philipp Gradl & Romeo Reichenhauser & Thomas Kienberger, 2020. "Modelling Grid Constraints in a Multi-Energy Municipal Energy System Using Cumulative Exergy Consumption Minimisation," Energies, MDPI, vol. 13(15), pages 1-23, July.
    7. Behrang Shirizadeh, Quentin Perrier, and Philippe Quirion, 2022. "How Sensitive are Optimal Fully Renewable Power Systems to Technology Cost Uncertainty?," The Energy Journal, International Association for Energy Economics, vol. 0(Number 1).
    8. Omoyele, Olalekan & Hoffmann, Maximilian & Koivisto, Matti & Larrañeta, Miguel & Weinand, Jann Michael & Linßen, Jochen & Stolten, Detlef, 2024. "Increasing the resolution of solar and wind time series for energy system modeling: A review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 189(PB).
    9. Liu, Hailiang & Andresen, Gorm Bruun & Greiner, Martin, 2018. "Cost-optimal design of a simplified highly renewable Chinese electricity network," Energy, Elsevier, vol. 147(C), pages 534-546.
    10. Géremi Gilson Dranka & Paula Ferreira, 2020. "Electric Vehicles and Biofuels Synergies in the Brazilian Energy System," Energies, MDPI, vol. 13(17), pages 1-22, August.
    11. Shirizadeh, Behrang & Quirion, Philippe, 2022. "The importance of renewable gas in achieving carbon-neutrality: Insights from an energy system optimization model," Energy, Elsevier, vol. 255(C).
    12. Liu, Hailiang & Brown, Tom & Andresen, Gorm Bruun & Schlachtberger, David P. & Greiner, Martin, 2019. "The role of hydro power, storage and transmission in the decarbonization of the Chinese power system," Applied Energy, Elsevier, vol. 239(C), pages 1308-1321.
    13. Andrés Henao-Muñoz & Andrés Saavedra-Montes & Carlos Ramos-Paja, 2018. "Optimal Power Dispatch of Small-Scale Standalone Microgrid Located in Colombian Territory," Energies, MDPI, vol. 11(7), pages 1-20, July.
    14. Laura Canale & Anna Rita Di Fazio & Mario Russo & Andrea Frattolillo & Marco Dell’Isola, 2021. "An Overview on Functional Integration of Hybrid Renewable Energy Systems in Multi-Energy Buildings," Energies, MDPI, vol. 14(4), pages 1-33, February.
    15. Gorre, Jachin & Ortloff, Felix & van Leeuwen, Charlotte, 2019. "Production costs for synthetic methane in 2030 and 2050 of an optimized Power-to-Gas plant with intermediate hydrogen storage," Applied Energy, Elsevier, vol. 253(C), pages 1-1.
    16. Shirizadeh, Behrang & Quirion, Philippe, 2021. "Low-carbon options for the French power sector: What role for renewables, nuclear energy and carbon capture and storage?," Energy Economics, Elsevier, vol. 95(C).
    17. Topi Rasku & Juha Kiviluoma, 2018. "A Comparison of Widespread Flexible Residential Electric Heating and Energy Efficiency in a Future Nordic Power System," Energies, MDPI, vol. 12(1), pages 1-27, December.
    18. Dranka, Géremi Gilson & Ferreira, Paula, 2018. "Planning for a renewable future in the Brazilian power system," Energy, Elsevier, vol. 164(C), pages 496-511.
    19. Li, Xudong & Yang, Weijia & Liao, Yiwen & Zhang, Shushu & Zheng, Yang & Zhao, Zhigao & Tang, Maojia & Cheng, Yongguang & Liu, Pan, 2024. "Short-term risk-management for hydro-wind-solar hybrid energy system considering hydropower part-load operating characteristics," Applied Energy, Elsevier, vol. 360(C).
    20. Hu, Jing & Harmsen, Robert & Crijns-Graus, Wina & Worrell, Ernst, 2019. "Geographical optimization of variable renewable energy capacity in China using modern portfolio theory," Applied Energy, Elsevier, vol. 253(C), pages 1-1.

    More about this item

    Statistics

    Access and download statistics

    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:era:eriabk:2021-rpr-13. 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: Ranti Amelia (email available below). General contact details of provider: https://edirc.repec.org/data/eriadid.html .

    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.