Competitive Energy Storage and the Duck Curve

Richard Schmalensee

The Energy Journal, 2022, vol. 43, issue 2, 1-16

Abstract: Power systems with high penetrations of solar generation need to replace solar output when it falls rapidly in the late afternoon—the duck curve problem. Storage is a carbon-free solution to this problem. This essay considers investment in generation and storage to minimize expected cost in a Boiteux-Turvey-style model of an electric power system with alternating daytime time periods, with solar generation, and nighttime periods, without it. In the most interesting cases, if energy market prices are uncapped, all expected cost minima are long-run competitive equilibria, and the long-run equilibrium value of storage capacity minimizes expected system cost conditional on generation capacities.

Keywords: Electricity; Storage; Solar; Arbitrage; Renewable; Duck curve; Competition (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

Downloads: (external link)
https://journals.sagepub.com/doi/10.5547/01956574.43.2.rsch (text/html)

Related works:
Journal Article: Competitive Energy Storage and the Duck Curve (2022)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:sae:enejou:v:43:y:2022:i:2:p:1-16

DOI: 10.5547/01956574.43.2.rsch

Access Statistics for this article

More articles in The Energy Journal
Bibliographic data for series maintained by SAGE Publications ().