Intermittent renewable electricity generation with smart grids

Prudence Dato, Tunç Durmaz and Aude Pommeret ()

No 2017.09, Working Papers from FAERE - French Association of Environmental and Resource Economists

Abstract: The aim of the paper is to analyse the efficient mix of investment in intermittent renewable energy and energy storage. The novelty of our model accrues from the flexibility it assigns to a household in feeding (resp. purchasing) electricity to (resp. from) the grid or store energy (or use stored energy) upon renewable energy installations. We study the consequences of demand side management by accounting for three levels of equipment in smart grids. The first level refers to the possibility to feed electricity to the grid that can simply be achieved by net metering. The second one concerns the installation of smart meters. The third level relates to energy storage. We analyse decisions concerning solar power and energy storage investments, and the consequences of energy storage and smart meters for electricity consumption and purchases of electricity from the grid. Additionally, we discuss the desirability of smart meter installation and study the implications of curtailment measures in avoiding congestion. Our results indicate that electricity prices need to be carefully contemplated when the objective is to rely less on the grid through smart grid deployment.

Keywords: Renewable energy; Intermittency; Distributed generation; Energy Storage; Demand response (search for similar items in EconPapers)
JEL-codes: D24 D61 D81 Q41 Q42 (search for similar items in EconPapers)
Pages: 34 pages
Date: 2017-06
New Economics Papers: this item is included in nep-ene and nep-reg
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http://faere.fr/pub/WorkingPapers/Dato_Durmaz_Pommeret_FAERE_WP2017.09.pdf First version, 2017 (application/pdf)

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Persistent link: https://EconPapers.repec.org/RePEc:fae:wpaper:2017.09

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