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SEMINAR 6 February 2012: Mario Samano, University of Arizona

Intermittency and the Value of Renewable Energy
Abstract
This paper develops an empirical approach to estimate the equilibrium value of in-
termittent renewable energy. We model an electricity system operator who optimizes
the amount of generation capacity, operating reserves, and demand curtailment poten-
tially in the presence of large-scale solar facilities. We use generator characteristics,
solar output, demand and weather forecast data to estimate parameters for southeast-
ern Arizona. The deadweight loss of a 20% solar mandate is 79% of its $184/MWh
average cost. Unforecastable intermittency accounts for $12.5/MWh. At a $21/ton
social cost of CO2 this mandate is welfare neutral if solar capacity costs decrease from
$5/W to $1.38/W.
 
 

Time: 06.02 13.00 -14.00


Place: Department of Economics
Porcelænshaven 16A


Room: 2.80



JMP Mario Samano_renewable_intermittency.pdf



Last updated by Grethe Mark 01/02/2012