Avoided cost estimation and cost-effectiveness of permanent load shifting in California

Applied Energy

Volumn 96, Issue , 2012, Pages 115-121

  Sreedharan, P ^a   Miller, D ^a   Price, S ^a   Woo, C K ^a,b  

^a Energy and Environmental Economics Inc   (United States)

^b HONG KONG BAPTIST UNIVERSITY   (Hong Kong)

Author keywords

Avoided cost; Cost effectiveness; Permanent load shifting; Renewable portfolio standards

Indexed keywords

COMPETITION; COSTS;

AVOIDED COSTS; CALIFORNIA; DEMAND RESPONSE; ELECTRICITY INDUSTRY; INSTALLATION COSTS; LOAD SHIFTING; PROGRAM DESIGN; RENEWABLE ENERGY DEVELOPMENT; RENEWABLE PORTFOLIO STANDARD; SITE-SPECIFIC; WHOLESALE MARKETS;

COST EFFECTIVENESS;

COST-BENEFIT ANALYSIS; DECADAL VARIATION; ELECTRICITY INDUSTRY; ENERGY MARKET; IMPLEMENTATION PROCESS; INSTALLATION; PERFORMANCE ASSESSMENT;

CALIFORNIA; UNITED STATES;

EID: 84861662547     PISSN: 03062619     EISSN: None     Source Type: Journal    
DOI: 10.1016/j.apenergy.2011.08.029     Document Type: Article

References (50)

1. Sioshansi F.P., Pfaffenberger W. Electricity market reform: an international perspective 2006, Elsevier, San Diego, California.
2. Woo C.K., Lloyd D., Tishler A. Electricity market reform failures: UK, Norway, Alberta and California. Energy Policy 2003, 31(11):1103-1115.
3. Special issue: electricity market reform and deregulation. Energy 2006, 31(6-7).
4. Hoogwijk M., de Vries B., Turkenburg W. Assessment of the global and regional geographical, technical and economic potential of onshore wind energy. Energy Econom 2004, 26(5):889-919.
5. Haas R., Meyer N.I., Held A., Finon D., Lorenzoni A., Wiser R., et al. Promoting electricity from renewable energy sources - lessons learned from the EU, US and Japan 2008, Lawrence Berkeley National Laboratory, Berkeley, California, .
6. Stahl B., Chavarria L., Nydegger J.D. Wind energy laws and incentives: a survey of selected state rules. Washburn Law J 2009, 49(1):99-142.
7. Schmalensee R. Renewable electricity generation in the United States 2009, Center for Energy and Environmental Policy Research, MIT, Cambridge, Massachusetts, .
8. Pollitt M.G. UK renewable energy policy since privatisation 2010, Cambridge University, Cambridge, UK, .
9. Lu X., McElroy M.B., Kiviluoma J. Global potential for wind-generated electricity. Proc Natl Acad Sci 2009, 106(27):10933-10938.
10. Renewable energy policy and development. Energy Policy 2011, 39(7).
11. Tishler A., Milstein I., Woo C.K. Capacity commitment and price volatility in a competitive electricity market. Energy Econom 2008, 30(4):1625-1647.
12. Milstein I, Tishler A. The inevitability of capacity underinvestment in competitive electricity markets. Energy Econom, accepted for publication.
13. Li Y., Flynn P.C. Electricity deregulation, spot price patterns and demand-side management. Energy 2006, 31(6-7):908-922.
14. Bunn D, Fezzi C. Interaction of European carbon trading and energy prices. FEEM working papers. Berkeley Electronic Press; 2007. <>. http://www.bepress.com/cgi/viewcontent.cgi?article=1124&context=feem.
15. Newcomer A., Blumsack S.A., Apt J., Lave L.B., Morgan M.G. Short run effects of a price on carbon dioxide emissions from US electric generators. Environ Sci Technol 2008, 42(9):3139-3144.
16. Wolfram C.D. Measuring duopoly power in the British electricity spot market. Am Econom Rev 1999, 89(4):805-826.
17. Borenstein S., Bushnell J.B., Wolak F.A. Measuring market inefficiencies in California's restructured wholesale electricity market. Am Econom Rev 2002, 92(5):1376-1405.
18. Joskow P.L., Khan E. A quantitative analysis of pricing behavior in California's wholesale electricity market during summer 2000. Energy J 2002, 23(4):1-35.
19. Weron R. Modeling and forecasting electricity loads and prices 2006, John Wiley, West Essex, UK.
20. Eydeland A., Wolyniec K. Energy and power risk management 2003, John Wiley, Hoboken, New Jersey.
21. EWEA. The economics of wind energy. European wind energy association; 2009. <>. http://www.le1000gru.org/mond/2009/scrfiles/Economics_of_Wind_Main_Report_FINAL-lr.pdf.
22. EWEA. Wind energy and electricity prices. European wind energy association; 2010. <>. http://www.ewea.org/fileadmin/ewea_documents/documents/publications/reports/MeritOrder.pdf.
23. Chao H.P. Efficient pricing and investment in electricity markets with intermittent resources. Energy Policy 2011, 39(7):3945-3953.
24. Milstein I., Tishler A. Intermittently renewable energy, optimal capacity mix and prices in a deregulated electricity market. Energy Policy 2011, 39(7):3922-3927.
25. Nicholson E., Rogers J., Porter K. The relationship between wind generation and balancing-energy market prices in ERCOT: 2007-2009 2010, National Renewable Energy Laboratory, Golden, Colorado, .
26. Sensfuß F., Ragwitz M., Genoese M. The merit-order effect: a detailed analysis of the price effect of renewable electricity generation on spot market prices in Germany. Energy Policy 2008, 36(8):3086-3094.
27. Steggals W., Gross R., Heptonstall P. Winds of change: how high wind penetrations will affect investment incentives in the GB electricity sector. Energy Policy 2011, 39(3):1389-1396.
28. Woo C.K., Horowitz I., Moore J., Pacheco A. The impact of wind generation on the electricity spot-market price level and variance: the texas experience. Energy Policy 2011, 39(7):3939-3944.
29. Kumar A., Srivastava S.C., Singh S.N. Congestion management in competitive power market: a bibliographical survey. Electr Power Syst Res 2005, 76(1-3):153-164.
30. Fanone E., Prokopczuk M. Modeling positive and negative spikes: a non-Gaussian process for intra-day electricity prices 2010, University of Trieste, .
31. Demand response resources. Energy 2010, 35.
32. Rahimi F., Ipakchi A. Demand response as a market resource under the smart grid paradigm. IEEE Trans Smart Grid 2010, 1(1):82-88.
33. Ipakchi A., Albuyeh F. Grid of the future. Power Energy Mag 2009, 7(2):52-62.
34. Woo C.K., Kollman E., Orans R., Price S., Horii B. Now that California has AMI, what can the state do with it?. Energy Policy 2008, 36(4):1366-1374.
35. Wang J., Liu C., Ton D., Zhou Y., Kim J., Vyas A. Impact of plug-in hybrid electric vehicles on power systems with demand response and wind power. Energy Policy 2011, 35(7):4016-4021.
36. Moura P.S., de Almeida A.T. The role of demand-side management in the grid integration of wind power. Appl Energy 2010, 87(8):2581-2588.
37. Woo C.K., Lloyd-Zannetti D., Orans R., Horii B., Heffner G. Marginal capacity costs of electricity distribution and demand for distributed generation. Energy J 1995, 16(2):111-130.
38. Heffner G., Woo C.K., Horii B., Lloyd-Zannetti D. Variations in area- and time-specific marginal capacity costs of electricity distribution. IEEE Trans Power Syst 1998, 13(2):560-567.
39. Baskette C., Horii B., Kollman E., Price S. Avoided cost estimation and post-reform funding allocation for California's energy efficiency programs. Energy 2006, 31:1084-1099.
40. Mahone A., Woo C.K., Williams J., Horowitz I. Renewable portfolio standards and cost-effective energy efficiency investment. Energy Policy 2009, 37(3):774-777.
41. E3, StrateGen Consulting. Statewide joint IOU study of permanent load shifting, CALMAC study ID SCE0292.01; 2010. <>. http://storagealliance.org/resources/PLS_Final_Report_With_Appendices.pdf.
42. Mosey G., Vimmerstedt L. Renewable electricity benefits quantification methodology: a request for technical assistance from the California public utilities commission 2009, National Renewable Energy Laboratory, Golden, Colorado, .
43. Takayama A. Mathematical economics 1974, Dryden, Hinsdale, Illinois.
44. Varian H.R. Microeconomic Analysis 1984, Norton, New York, New York.
45. CPUC. D.09-08-026: Decision adoption cost benefit methodology for distributed generation. California Public Utilities Commission, San Francisco California, 2009. <>. http://docs.cpuc.ca.gov/word_pdf/FINAL_DECISION/105926.pdf.
46. Bohn R.E., Caramanis M.C., Schweppe F.C. Optimal pricing in electrical networks over space and time. Rand J Econom 1984, 15(3):360-376.
47. Vardi J., Zahavi J., Avi-Itzhak B. Variable load pricing in the face of loss of load probability. Bell J Econom 1977, 8(1):270-288.
48. Woo C.K., Orans R., Horii B., Pupp R., Heffner G. Area- and time-specific marginal capacity costs of electricity distribution. Energy 1994, 19(12):1213-1218.
49. Johnston L, Hausman E, Biewald B, Wilson R, White D. Carbon dioxide price forecast, Synapse Energy Economics. Cambridge, Massachusetts; 2011. <>. http://www.synapse-energy.com/Downloads/SynapsePaper.2011-02.0.2011-Carbon-Paper.A0029.pdf.
50. Orans R., Woo C.K., Horii B. Targeting demand side management for electricity transmission and distribution benefits. Manage Decis Econom 1994, 15:169-175.