 Trading Off Capacity Factors, Location, Storage, Access Charges and Curtailment for Renewable ElectricityDavid M. Newbery Cambridge Working Papers in Economics from Faculty of Economics, University of Cambridge Abstract: Variable renewable electricity (VRE) is typically located far from load centres. As marginal curtailment is 3+ times average curtailment, unless transmission is expanded commensurately, VRE curtailment will rise rapidly. This article develops a novel close d-form solution to give formulae for the efficient balance of transmission expansion, renewables capacity and voluntary curtailment in a simplified model where VRE is distant from load. Given equilibrium in demand centres, the solutions are independent of market prices, depending only on cost and technology parameters. If local grid-connected storage covers most of its cost, co-located storage increases its profit for onshore wind and lowers optimal export capacity. The model is calibrated for on-shore British wind. Overhead lines, if built sufficiently rapidly, have little effect on desirable levels of curtailment/congestion for Scottish wind, but for Britain's proposed undersea links high costs increase efficient curtailment to the point where further Scottish wind expansion becomes unprofitable. Keywords: Transmission Constraints; Access Regimes; Variable Renewable Electricity; Storage; Curtailment; Zonal Pricing (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:cam:camdae:2638 Access Statistics for this paper More papers in Cambridge Working Papers in Economics from Faculty of Economics, University of Cambridge |
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