Essays on the Economics of Electricity.

Electricity;Wind energy;Transmission;Electricity deregulation;Economics;Business and Economics;Economics

Dorsey-Palmateer, Reid M.Fox, Jeremy ;

University of Michigan

关键词: Electricity;    Wind energy;    Transmission;    Electricity deregulation;    Economics;    Business and Economics;    Economics;   

Others  :  https://deepblue.lib.umich.edu/bitstream/handle/2027.42/113542/reiddp_1.pdf?sequence=1&isAllowed=y

瑞士|英语

来源: The Illinois Digital Environment for Access to Learning and Scholarship

【 摘 要 】

This dissertation analyzes issues relating to the economics of electricity in Texas: implications of wind generation intermittency, valuation of transmission lines and regulatory policies surrounding retail electricity deregulation. Extensive government involvement in the electricity market implies that an improved understanding of the economics of electricity can lead to improved public policies in this area.Chapter 1 analyzes the effect of wind power intermittency on generation costs and emissions. Electricity generation and load must be close to equal at all times. However the ability of wind turbines to generate electricity varies with wind conditions. This chapter finds evidence that, while overall, wind generation reduces generation costs and CO2 emissions by offsetting fossil fuel generation, wind generation intermittency is associated with a shift in the fossil fuel generation mix from cheaper coal to more expensive, cleaner and more flexible natural gas, with the associated impacts on emissions and costs.Chapter 2 analyzes the recent expansion of transmission lines in the western part of Texas to better access areas with high wind generation potential. While greater access to wind resources in western Texas will ultimately allow for reduced use of fossil fuel generation and corresponding reductions in generation costs and pollution, the transmission grid expansion cost approximately $7 billion. This chapter compares the costs and benefits of this transmission project and finds that the costs of this transmission expansion will consume a non-trivial amount of the value of the additional wind generated.Chapter 3 analyzes deregulation policies for retail electricity markets. In states where consumers can select between retail electricity providers, consumers exhibit strong inertia to stay with their current provider, leading to imperfect competition. Texas employed an unusual approach to regulating the incumbent firm during the transition to a deregulated market, forcing the incumbent to set a relatively high price to allow entrant firms to be more competitive. This chapter models the retail electricity industry and finds that it is possible, but not guaranteed, for a Texas-style approach with high temporary regulated prices on the incumbent to result in superior outcome to an alternative transitional policy with lower prices.