Real-Time Pricing and the Cost of Clean Power

A-Tier
Journal: American Economic Journal: Economic Policy
Year: 2024
Volume: 16
Issue: 4
Pages: 100-141

Score contribution per author:

1.341 = (α=2.01 / 3 authors) × 2.0x A-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

Solar and wind power are now cheaper than fossil fuels but are intermittent. The extra supply-side variability implies growing benefits of using real-time retail pricing (RTP). We evaluate the potential gains of RTP using a model that jointly solves investment, supply, storage, and demand to obtain a chronologically detailed dynamic equilibrium for the island of Oahu, Hawai'i. We find that, holding demand assumptions fixed, RTP reduces costs in high-renewable systems by roughly 6 to 12 times as much as in fossil systems, markedly lowering the cost of clean energy integration.

Technical Details

RePEc Handle
repec:aea:aejpol:v:16:y:2024:i:4:p:100-141
Journal Field
General
Author Count
3
Added to Database
2026-01-25