IDEAS home Printed from https://ideas.repec.org/h/elg/eechap/18895_15.html
   My bibliography  Save this book chapter

Shifting supply as well as demand: the new economics of electricity with high renewables

In: Handbook on Electricity Markets

Author

Listed:
  • Richard Green

Abstract

This chapter shows how variable renewable generators (particularly solar and wind) can change the operation of electricity markets. Demand fluctuations have been the main drivers of short-term price variations in the past, but changes in renewable output can shift the supply curve by large amounts. The chapter shows how the traditional screening curve approach to electricity generation economics can be modified to take account of these changes. It then discusses the role of electricity transmission in smoothing fluctuations by spreading their effects over larger areas and in allowing renewable generatorsmarket access from distantresource-rich areas. Electricity storage can smooth fluctuations over time, and the chapter extends the standard "bath-tub" analysis of hydro storage to rechargeable storage facilities. It also discusses the operational challenges of providing enough reserveand inertia to deal with fluctuating outputs, and the price and revenue risks faced by generators.

Suggested Citation

  • Richard Green, 2021. "Shifting supply as well as demand: the new economics of electricity with high renewables," Chapters, in: Jean-Michel Glachant & Paul L. Joskow & Michael G. Pollitt (ed.), Handbook on Electricity Markets, chapter 15, pages 408-427, Edward Elgar Publishing.
    • Handle: RePEc:elg:eechap:18895_15
    as

    Download full text from publisher

    File URL: https://www.elgaronline.com/view/edcoll/9781788979948/9781788979948.00022.xml
    Download Restriction: no
    ---><---

    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:elg:eechap:18895_15. 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.

    We have no bibliographic references for this item. You can help adding them by using 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: Darrel McCalla (email available below). General contact details of provider: http://www.e-elgar.com .

    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.