Research Article

Energy Storage and Renewable Energy: An Economic Approach

Volume: 4 Number: 1 May 31, 2018
TR EN

Energy Storage and Renewable Energy: An Economic Approach

Abstract

I consider an economy with fossil fuels, intermittent renewable energy, and energy storage, identify the conditions under which energy storage is optimal, and analyze the long-run tendencies of the economy energy variables. The findings are twofold. First, the amount of energy stored in the economy is highly dependent on the shape of the demand and supply schedules. In particular, energy storage is fostered by the convexity of the marginal utility, the marginal cost function for fossil fuel energy, and the degree of volatility in renewable energy. Second, considering a low level of renewable energy capacity, storing energy is not welfare improving when the unit cost of providing fossil fuel energy is constant. By showing the influence that energy storage can have on energy generation decisions, I believe that the current work can be influential in a more generous treatment of energy supply in future energy-economy models.

Keywords

References

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  6. EIA (2011). International Energy Outlook 2011. Technical report, U.S. Energy Information Administration.
  7. Evans, L., G. Guthrie, and A. Lu (2013). The role of storage in a competitive electricity market and the effects of climate change. Energy Economics 36, 405–418.
  8. Førsund, F. R. (2007). Hydropower Economics. Springer, New York, USA.

Details

Primary Language

English

Subjects

-

Journal Section

Research Article

Authors

Tunç Durmaz *
Yildiz Technical University
0000-0001-5693-3350
Türkiye

Publication Date

May 31, 2018

Submission Date

January 16, 2018

Acceptance Date

December 30, 2018

Published in Issue

Year 2018 Volume: 4 Number: 1

APA
Durmaz, T. (2018). Energy Storage and Renewable Energy: An Economic Approach. Yildiz Social Science Review, 4(1), 15-38. https://izlik.org/JA24CX48TM
AMA
1.Durmaz T. Energy Storage and Renewable Energy: An Economic Approach. YSSR. 2018;4(1):15-38. https://izlik.org/JA24CX48TM
Chicago
Durmaz, Tunç. 2018. “Energy Storage and Renewable Energy: An Economic Approach”. Yildiz Social Science Review 4 (1): 15-38. https://izlik.org/JA24CX48TM.
EndNote
Durmaz T (May 1, 2018) Energy Storage and Renewable Energy: An Economic Approach. Yildiz Social Science Review 4 1 15–38.
IEEE
[1]T. Durmaz, “Energy Storage and Renewable Energy: An Economic Approach”, YSSR, vol. 4, no. 1, pp. 15–38, May 2018, [Online]. Available: https://izlik.org/JA24CX48TM
ISNAD
Durmaz, Tunç. “Energy Storage and Renewable Energy: An Economic Approach”. Yildiz Social Science Review 4/1 (May 1, 2018): 15-38. https://izlik.org/JA24CX48TM.
JAMA
1.Durmaz T. Energy Storage and Renewable Energy: An Economic Approach. YSSR. 2018;4:15–38.
MLA
Durmaz, Tunç. “Energy Storage and Renewable Energy: An Economic Approach”. Yildiz Social Science Review, vol. 4, no. 1, May 2018, pp. 15-38, https://izlik.org/JA24CX48TM.
Vancouver
1.Tunç Durmaz. Energy Storage and Renewable Energy: An Economic Approach. YSSR [Internet]. 2018 May 1;4(1):15-38. Available from: https://izlik.org/JA24CX48TM