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PublisherUNIV CHICAGO PRESS
CitationGautam Gowrisankaran, Stanley S. Reynolds, and Mario Samano, "Intermittency and the Value of Renewable Energy," Journal of Political Economy 124, no. 4 (August 2016): 1187-1234.
JournalJOURNAL OF POLITICAL ECONOMY
Rights© 2011 by Gautam Gowrisankaran, Stanley S. Reynolds, and Mario Samano. All rights reserved. Shortsections of text, not to exceed two paragraphs, may be quoted without explicit permission provided that full credit, including © notice, is given to the source
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AbstractA key problem with solar energy is intermittency: solar generators produce only when the sun is shining, adding to social costs and requiring electricity system operators to reoptimize key decisions. We develop a method to quantify the economic value of large-scale renewable energy. We estimate the model for southeastern Arizona. Not accounting for offset carbon dioxide, we find social costs of $138.40 per megawatt hour for 20 percent solar generation, of which unforecastable intermittency accounts for $6.10 and intermittency overall for $46.00. With solar installation costs of $1.52 per watt and carbon dioxide social costs of $39.00 per ton, 20 percent solar would be welfare neutral.
NoteElectronically published June 29, 2016;12 Month Embargo.
VersionFinal published version
SponsorsArizona Research Institute for Solar Energy