EconPapers    
Economics at your fingertips  
 

Real-time electricity pricing to balance green energy intermittency

Stefan Ambec and Claude Crampes

Post-Print from HAL

Abstract: The presence of consumers able to respond to changes in wholesale electricity prices facilitates the penetration of renewable intermittent sources of energy such as wind or sun power. We investigate how adapting demand to intermittent electricity supply by making consumers price-responsive - thanks to smart meters and home automation appliances - impacts the energy mix. We show that it almost always reduces carbon emissions. Furthermore, when consumers are not too risk-averse, demand response is socially beneficial because the loss from exposing consumers to volatile prices is more than offset by lower production and environmental costs. However, the gain is decreasing when the proportion of reactive consumers increases. Therefore, depending on the costs of the necessary smart hardware, it may be non-optimal to equip the whole population.

Keywords: Electricity; Intermittency; Renewables; Dynamic pricing; Demand response; Smart meters (search for similar items in EconPapers)
Date: 2021-02
New Economics Papers: this item is included in nep-ene, nep-env, nep-reg and nep-res
Note: View the original document on HAL open archive server: https://hal.science/hal-03153425
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (7)

Published in Energy Economics, 2021, 94, ⟨10.1016/j.eneco.2020.105074⟩

Downloads: (external link)
https://hal.science/hal-03153425/document (application/pdf)

Related works:
Journal Article: Real-time electricity pricing to balance green energy intermittency (2021) Downloads
Working Paper: Real-time electricity pricing to balance green energy intermittency (2020) Downloads
Working Paper: Real-time electricity pricing to balance green energy intermittency (2020) Downloads
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:hal:journl:hal-03153425

DOI: 10.1016/j.eneco.2020.105074

Access Statistics for this paper

More papers in Post-Print from HAL
Bibliographic data for series maintained by CCSD ().

 
Page updated 2024-04-06
Handle: RePEc:hal:journl:hal-03153425