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Ambec, Stefan
and Crampes, Claude
(2020)
Real-time electricity pricing to balance green energy intermittency.
TSE Working Paper, n. 20-1087, Toulouse
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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 - impact the energy mix. We show that it 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.
| Item Type: | Monograph (Working Paper) |
|---|---|
| Language: | English |
| Date: | April 2020 |
| Place of Publication: | Toulouse |
| Uncontrolled Keywords: | electricity, intermittency, renewable dynamic pricing, demand response, smart, meters |
| JEL Classification: | D24 - Production; Cost; Capital and Total Factor Productivity; Capacity D62 - Externalities Q41 - Demand and Supply Q42 - Alternative Energy Sources Q48 - Government Policy |
| Subjects: | B- ECONOMIE ET FINANCE |
| Divisions: | TSE-R (Toulouse) |
| Institution: | Université Toulouse 1 Capitole |
| Site: | UT1 |
| Date Deposited: | 22 Apr 2020 08:58 |
| Last Modified: | 13 Nov 2021 10:36 |
| OAI Identifier: | oai:tse-fr.eu:124192 |
| URI: | https://publications.ut-capitole.fr/id/eprint/34675 |
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