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Effect of real-time electricity pricing on renewable generators and system emissions

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dc.contributor.advisor Stephen Connors. en_US Connolly, Jeremiah P. (Jeremiah Peter) en_US
dc.contributor.other Massachusetts Institute of Technology. Technology and Policy Program. en_US
dc.contributor.other Massachusetts Institute of Technology. Engineering Systems Division. en_US 2008-11-07T14:12:04Z 2008-11-07T14:12:04Z 2008 en_US 2008 en_US
dc.description Thesis (S.M. in Technology and Policy)--Massachusetts Institute of Technology, Engineering Systems Division, Technology and Policy Program, 2008. en_US
dc.description This electronic version was submitted by the student author. The certified thesis is available in the Institute Archives and Special Collections. en_US
dc.description Includes bibliographical references (p. 127-130). en_US
dc.description.abstract Real-time retail pricing (RTP) of electricity, in which the retail price is allowed to vary with very little time delay in response to changes in the marginal cost of generation, offers expected short-run and long-run benefits at the societal level. While the effects of RTP on most market participants have been examined previously, its effects on a) renewable generator revenues and b) power sector emissions are not well understood. This thesis presents a counterfactual model of the new England wholesale power market, including within-hour consumer price response, to analyze revenues under RTP for four renewable test cases and emissions of CO2, SO2, and NOx. Assuming a moderate consumer price-response ( e = -0.3), I find that revenues for both wind and solar cases will decrease by about 3%, a smaller loss than that expected by the generation sector as a whole (~ 6%) or by peak generators ( ~ 55%). In the same scenario, RTP is expected to decrease emissions of CO2, SO2, and NOx by 2-3% in the short-run. These results are qualitatively robust across a range of elasticities and other input parameters. A discussion of the political barriers to RTP highlights interest group pressure from peak generators and the framing of gains and losses for consumers. These barriers are likely to attract significant policymaker attention in RTP discussions, but the results of my empirical analysis show the need to also consider how RTP may interfere with the ability to achieve other policy objectives, including promoting renewable energy and reducing emissions. en_US
dc.description.statementofresponsibility by Jeremiah P. Connolly. en_US
dc.format.extent 158 p. en_US
dc.language.iso eng en_US
dc.publisher Massachusetts Institute of Technology en_US
dc.rights M.I.T. theses are protected by copyright. They may be viewed from this source for any purpose, but reproduction or distribution in any format is prohibited without written permission. See provided URL for inquiries about permission. en_US
dc.rights.uri en_US
dc.subject Technology and Policy Program. en_US
dc.subject Engineering Systems Division. en-US
dc.title Effect of real-time electricity pricing on renewable generators and system emissions en_US
dc.type Thesis en_US S.M. en_US
dc.contributor.department Massachusetts Institute of Technology. Technology and Policy Program. en_US
dc.identifier.oclc 255602571 en_US

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