Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/266131 
Year of Publication: 
2022
Series/Report no.: 
Graduate Institute of International and Development Studies Working Paper No. HEIDWP17-2022
Publisher: 
Graduate Institute of International and Development Studies, Geneva
Abstract: 
Solar and wind power are now cheaper than fossil fuels but are intermittent. The extra supply-side variability implies growing benefits of using real-time retail pricing (RTP). We evaluate the potential gains of RTP using a model that jointly solves investment, supply, storage, and demand to obtain a chronologically detailed dynamic equilibrium for the island of Oahu, Hawai'i. Across a wide range of cost and demand assumptions, we find the gains from RTP in high-renewable systems to exceed those in a conventional fossil system by roughly 6 times to 12 times, markedly lowering the cost of renewable energy integration.
Subjects: 
Renewable energy
real-time pricing
storage
demand response
optimization
JEL: 
Q41
Q42
Q53
Document Type: 
Working Paper

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