2026-09-19T08:04:49Zhttps://dspace.mit.edu/server/oai/request

oai:dspace.mit.edu:1721.1/429382022-01-31T19:50:37Zcom_1721.1_7582com_1721.1_7581col_1721.1_131023

Stephen Connors. Connolly, Jeremiah P. (Jeremiah Peter) Massachusetts Institute of Technology. Technology and Policy Program. Massachusetts Institute of Technology. Engineering Systems Division. Massachusetts Institute of Technology. Engineering Systems Division Technology and Policy Program 2008-11-07T14:12:04Z 2008-11-07T14:12:04Z 2008 2008 http://hdl.handle.net/1721.1/42938 255602571 Thesis (S.M. in Technology and Policy)--Massachusetts Institute of Technology, Engineering Systems Division, Technology and Policy Program, 2008. This electronic version was submitted by the student author. The certified thesis is available in the Institute Archives and Special Collections. Includes bibliographical references (p. 127-130). 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. by Jeremiah P. Connolly. S.M. 158 p. eng Massachusetts Institute of Technology 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. http://dspace.mit.edu/handle/1721.1/7582 Technology and Policy Program. Engineering Systems Division. Effect of real-time electricity pricing on renewable generators and system emissions Thesis application/pdf false Publication unknown unknown <Publication xmlns="https://www.openaire.eu/cerif-profile/1.1/" id="1796c336-32ae-4365-b7e0-b7209c7a1c1b"> <Type xmlns="https://www.openaire.eu/cerif-profile/vocab/COAR_Publication_Types">http://purl.org/coar/resource_type/c_1843</Type> <Language>eng</Language> <Title>Effect of real-time electricity pricing on renewable generators and system emissions</Title> <PublishedIn> <Publication> </Publication> </PublishedIn> <PublicationDate>2008</PublicationDate> <Authors> <Author> <DisplayName>Connolly, Jeremiah P. (Jeremiah Peter)</DisplayName> <Affiliation> <OrgUnit> </OrgUnit> </Affiliation> </Author> </Authors> <Editors> </Editors> <Publishers> <Publisher> <DisplayName>Massachusetts Institute of Technology</DisplayName> <OrgUnit /> </Publisher> </Publishers> <License>http://dspace.mit.edu/handle/1721.1/7582</License> <Keyword>Technology and Policy Program.</Keyword> <Keyword>Engineering Systems Division.</Keyword> <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.</Abstract> <Access xmlns="http://purl.org/coar/access_right" > </Access> </Publication>