Electricity generation cost in isolated system: The complementarities of natural gas and renewables in the Canary Islands

Renewable and Sustainable Energy Reviews

Volumn 14, Issue 9, 2010, Pages

  Marrero, Gustavo A ^a,b   Ramos Real, Francisco Javier ^a  

^a UNIVERSIDAD DE LA LAGUNA   (Spain)

^b Foundation for Applied Economic Research FEDEA   (Spain)

Author keywords

Efficiency frontiers; Electricity generating cost; Isolated electricity systems; Mean variance analysis

Indexed keywords

COSTS; ELECTRIC POWER GENERATION; ENERGY POLICY; FOSSIL FUELS; NATURAL GAS; RISK ASSESSMENT; RISK PERCEPTION;

EFFICIENCY FRONTIERS; ELECTRICITY GENERATION COST; ELECTRICITY INDUSTRY; ELECTRICITY SYSTEM; GENERATE ELECTRICITY; MEAN-VARIANCE ANALYSIS; MEAN-VARIANCE PORTFOLIO THEORIES; RENEWABLE ENERGIES;

COST BENEFIT ANALYSIS;

EID: 77957060722     PISSN: 13640321     EISSN: None     Source Type: Journal    
DOI: 10.1016/j.rser.2010.06.007     Document Type: Review

References (35)

1. S. Awerbuch Investing in photovoltaics: risk, accounting and the value of new technology Energy Policy 28 14 2000 1023 1035
2. Awerbuch S, Berger M. Applying portfolio theory to EU electricity planning and policy-making. IEA/EET, Paris; 2003. Available from http://www.iea.org/textbase/papers/2003/port.pdf.
3. Gross R, Blyth W, Heptonstall P. Risks, revenues and investment in electricity generation: why policy needs to look beyond costs. Energy Econ; in press. doi:10.1016/j.eneco.2009.09.017.
4. H.M. Markowitz Portfolio selection J Finan 7 1 1952 77 91
5. H.M. Markowitz Portfolio selection, efficient diversification of investment 1959 Yale University Press
6. D.G. Luenberguer Investment science 1998 Oxford University Press Oxford
7. D. Weisser On the economics of electricity consumption in small island developing states: a role for renewable energy technologies? Energy Policy 32 2004 127 140
8. D. Weisser Power sector reform in small island developing states: what role for renewable energy technologies? Renew Sustain Energy Rev 8 2004 101 127
9. Y. Pérez, and F.J. Ramos-Real How to make a European integrated market in small and isolated electricity systems? The case of Canary Islands Energy Policy 36 2008 4159 4167
10. D. Feretic, and Z. Tomsic Probabilistic analysis of electrical energy costs comparing production costs for gas, coal and nuclear power plants Energy Policy 33 1 2005 5 13
11. S. Awerbuch, and S. Yang Efficient electricity generating portfolios for Europe: maximising energy security and climate change mitigations EIB Pap 2 2007 8 37
12. W. Blyth, R. Bradley, D. Bunn, C. Clarke, T. Wilson, and M. Yang Investment risks under uncertainty Energy Policy 35 11 2007 5766 5773
13. DTI. Overview of modelling of the relative electricity generating costs of different technologies. London: The Stationery Office; 2006. Available from http://www.berr.gov.uk/files/file32014.pdf.
14. European Community. Green paper. 'Towards a European strategy for the security of energy supply'; 2001
15. European Community. The support of electricity from renewable energy sources - accompanying document to the proposal for a directive of the European parliament and of the council on the promotion of the use of energy from renewable sources. Brussels: SEC, European Commission; 2008. p. 57. Available from http://register.consilium.europa.eu/pdf/en/08/st05/st05421-ad01.en08.pdf.
16. Gross R, Heptonstall P, Anderson D, Green T, Leach M, Skea J. The costs and impacts of intermittency: an assessment of the evidence on the costs and impacts of intermittent generation on the British electricity network. London: UK Energy Research Centre (UKERC); 2006. Available from: http://www.ukerc.ac.uk/ Downloads/PDF/06/0604Intermittency/0604IntermittencyReport.pdf.
17. MIT. The future of nuclear power. Massachusetts Institute of Technology; 2003. Available from http://web.mit.edu/nuclearpower/pdf/nuclearpower-full.pdf.
18. PECAN. Plan Energético de Canarias 2006. Gobierno de Canarias; 2002.
19. IEA. Projected costs of generating electricity, 2005 update. International Energy Agency; 2005.
20. IEA. Projected costs of generating electricity, 2010 update. International Energy Agency; 2010.
21. F. Ramos-Real, and J.A. Afonso Evolución y determinantes de la productividad en el sector eléctrico canario 1970-98 Rev Asturiana de Econ 33 2005 113 135
22. F.J. Ramos-Real, J.C. Moreno Piquero, and J.M. Ramos Henríquez The effects of introducing natural gas in the Canary Islands for electricity generation Energy Policy 35 7 2007
23. R.C. Merton An analytical derivation of the efficient portfolio frontier J Finan Quant Anal 7 4 1972 1851 1872
24. H. Shefrin, and M. Statman Behavioral portfolio theory J Finan Quant Anal 35 2 2000 127 151
25. H. Levy, and M. Levy Prospect theory and mean-variance analysis Rev Finan Stud 17 4 2004 1015 1041
26. H.B. Humphreys, and K.T. McClain Reducing the impacts of energy price volatility through dynamic portfolio selection Energy J 19 3 1998 107 131
27. J. Albrecht The future role of photovoltaics: a learning curve versus portfolio perspective Energy Policy 35 2007 2296 2304
28. D. Gotham, K. Muthuraman, P. Preckel, R. Rardin, and S. Ruangpattana A load factor based mean-variance analysis for fuel diversification Energy Econ 31 2009 249 256
29. J.I. Muñoz, A. Sánchez de la Nieta, A. Contreras, and J.L. Bernal-Agustín Optimal investment portfolio in renewable energy: the Spanish case Energy Policy 37 2009 5273 5284
30. F.A. Roques, D.M. Newbery, and W.J. Nuttall Fuel mix diversification incentives in liberalised electricity markets: a mean-variance portfolio theory approach Energy Econ 30 2008 1831 1849
31. R. Wiser, D. Bachrach, M. Bolinger, and W. Golove Comparing the risk profiles of renewable and natural gas-fired electricity contracts Renew Sustain Energy Rev 8 2004 335 336
32. Y. Pérez, and F.J. Ramos-Real The public promotion of wind energy in Spain from the transaction costs perspective 1986-2007 Renew Sustain Energy Rev 13 5 2009 1058 1067
33. S Awerbuch Portfolio-based electricity generation planning: policy implications for renewable and energy security Mitigation Adapt Strategies Global Change 11 2006 693 710
34. F. Aune, K. Rosendahl, and E. Sagen Globalisation of natural gas markets. Effects on prices and trade patterns Energy J 2009 39 53 special issue
35. The Royal Academy of Engineering. The costs of generating electricity. London: The Royal Academy of Engineering; 2004. Available from http://www.raeng.org.uk/news/publications/list/reports/Cost-of-Generating- Electricity.pdf.