Strategic Investment in Renewable Energy Sources: The Effect of Supply Intermittency

Published Online:https://doi.org/10.1287/msom.2017.0621

References

  • Alizamir S, de Véricourt F, Sun P (2016) Efficient feed-in-tariff policies for renewable energy technologies. Oper. Res. 64(1):52–66.LinkGoogle Scholar
  • Ambec S, Crampes C (2012) Electricity provision with intermittent sources of energy. Resource Energy Econom. 34(3):319–336.CrossrefGoogle Scholar
  • Avci B, Girotra K, Netessine S (2014) Electric vehicles with a battery switching station: Adoption and environmental impact. Management Sci. 61(4):772–794.LinkGoogle Scholar
  • Baranes E, Jacqmin J, Poudou J-C (2015) Non-renewable and intermittent renewable energy sources: Friends and foes? FAERE Working Papers WP 2015.02, University of Montpellier, Montpellier, France.Google Scholar
  • Barlow RE, Proschan F, Hunter LC (1996) Mathematical Theory of Reliability, Vol. 17 (Society for Industrial Mathematics, Philadelphia).CrossrefGoogle Scholar
  • Borenstein S (2002) The trouble with electricity markets: Understanding California’s restructuring disaster. J. Econom. Perspect. 16(1):191–211.CrossrefGoogle Scholar
  • Borenstein S, Bushnell J, Stoft S (2000) The competitive effects of transmission capacity in a deregulated electricity industry. RAND J. Econom. 31(2):294–325.CrossrefGoogle Scholar
  • Bushnell J (2010) Building blocks: Investment in renewable and non-renewable technologies. Moselle B, Padilla J, Schmalensee R, eds. Harnessing Renewable Energy in Electric Power Systems: Theory, Practice, Policy (Earthscan, Washington, DC), 159–180.Google Scholar
  • Bushnell JB, Mansur ET, Saravia C (2008) Vertical arrangements, market structure, and competition: An analysis of restructured us electricity markets. Amer. Econom. Rev. 98(1):237–266.CrossrefGoogle Scholar
  • Butler L, Neuhoff K (2008) Comparison of feed-in tariff, quota and auction mechanisms to support wind power development. Renewable Energy 33(8):1854–1867.CrossrefGoogle Scholar
  • Cachon G, Terwiesch C (2011) Matching Supply with Demand: An Introduction to Operations Management (McGraw-Hill, New York).Google Scholar
  • Castro-Rodriguez F, Marín PL, Siotis G (2009) Capacity choices in liberalised electricity markets. Energy Policy 37(7):2574–2581.CrossrefGoogle Scholar
  • Chao H (1983) Peak load pricing and capacity planning with demand and supply uncertainty. Bell J. Econom. 14(1):179–190.CrossrefGoogle Scholar
  • Cohen MC, Lobel R, Perakis G (2015) The impact of demand uncertainty on consumer subsidies for green technology adoption. Management Sci. 62(5):1235–1258.LinkGoogle Scholar
  • Cox J (2009) Impact of Intermittency: How Wind Variability Could Change the Shape of the British and Irish Electricity Markets (Pöyry Energy Ltd., Oxford, UK).Google Scholar
  • Crew MA, Kleindorfer PR (1976) Peak load pricing with a diverse technology. Bell J. Econom. 7(1):207–231.CrossrefGoogle Scholar
  • Crew MA, Fernando CS, Kleindorfer PR (1995) The theory of peak-load pricing: A survey. J. Regulatory Econom. 8(3):215–248.CrossrefGoogle Scholar
  • Defeuilley C (2009) Retail competition in electricity markets. Energy Policy 37(2):377–386.CrossrefGoogle Scholar
  • Deo S, Corbett CJ (2009) Cournot competition under yield uncertainty: The case of the U.S. influenza vaccine market. Manufacturing Service Oper. Management 11(4):563–576.LinkGoogle Scholar
  • Drake DF, Kleindorfer PR, Van Wassenhove LN (2016) Technology choice and capacity portfolios under emissions regulation. Production Oper. Management 25(6):1006–1025.CrossrefGoogle Scholar
  • Energy Information Administration (EIA) (2010) Annual Energy Outlook 2011 (Energy Information Administration, Washington, DC).Google Scholar
  • Elmaghraby WJ (2005) Multi-unit auctions with dependent valuations: Issues of efficiency in electricity auctions. Eur. J. Oper. Res. 166(2005):430–448.Google Scholar
  • Faghih A, Roozbehani M, Dahleh MA (2013) On the value and price-responsiveness of ramp-constrained storage. Energy Conversion Management 76(December):472–482.CrossrefGoogle Scholar
  • Garcia A, Alzate JM, Barrera J (2012) Regulatory design and incentives for renewable energy. J. Regulatory Econom. 41(3):315–336.CrossrefGoogle Scholar
  • Goodarzi S, Aflaki S, Masini A (2015) Optimal feed-in tariff policies: The role of technology manufacturers. HEC Paris Research Paper MOSI-2015-1109, HEC, Jouy-en-Josas, France.Google Scholar
  • Green RJ, Newbery DM (1992) Competition in the British electricity spot market. J. Political Econom. 100(5):929–953.CrossrefGoogle Scholar
  • Hogan W (1995) A competitive electricity market model. Working paper, Harvard Electricity Policy Group, Boston.Google Scholar
  • Islegen Ö, Reichelstein S (2011) Carbon capture by fossil fuel power plants: An economic analysis. Management Sci. 57(1):21–39.LinkGoogle Scholar
  • Joskow PL (2006) Competitive electricity markets and investment in new generating capacity. Working paper, Center for Energy and Environmental Policy Research, Massachusetts Institute of Technology, Cambridge, MA.Google Scholar
  • Kaffine DT, McBee BJ, Lieskovsky J (2013) Emissions savings from wind power generation in Texas. Energy J. 34(1):155–175.CrossrefGoogle Scholar
  • Kennedy S (2005) Wind power planning: assessing long-term costs and benefits. Energy Policy 33(13):1661–1675.CrossrefGoogle Scholar
  • Kim JH, Powell WB (2011) Optimal energy commitments with storage and intermittent supply. Oper. Res. 59(6):1347–1360.LinkGoogle Scholar
  • Kleindorfer PR, Singhal K, Wassenhove LN (2005) Sustainable operations management. Production Oper. Management 14(4):482–492.CrossrefGoogle Scholar
  • Lew D, Brinkman G, Ibanez E, Florita A, Heaney M, Hodge B-M, Hummon M, et al. (2013) The western wind and solar integration study phase 2. Technical report, National Renewable Energy Laboratory, Golden, CO.Google Scholar
  • Masters GM (2013) Renewable and Efficient Electric Power Systems (John Wiley & Sons, Hoboken, NJ).Google Scholar
  • Michaels RJ (2004) Vertical integration: The economics that electricity forgot. Electricity J. 17(10):11–23.CrossrefGoogle Scholar
  • Michaels RJ (2007) Vertical integration and the restructuring of the U.S. electricity industry. Working paper, Cato Institute Policy Analysis Series, California State University, Fullerton.Google Scholar
  • Neuhoff K, Cust J, Keats-Martinez K (2007) Implications of intermittency and transmission constraints for renewables deployment. Grubb M, Jamasb T, Pollitt MG, eds. Delivering a Low Carbon Electricity System: Technologies, Economics and Policy (Cambridge University Press, Cambridge, UK), 157–180.Google Scholar
  • Owen AD (2004) Environmental externalities, market distortions and the economics of renewable energy technologies. Energy J. 25(3):127–156.CrossrefGoogle Scholar
  • Ren21 R (2014) Renewables 2014 Global Status Report (REN21 Secretariat, Paris).Google Scholar
  • Savaskan RC, Bhattacharya S, Van Wassenhove LN (2004) Closed-loop supply chain models with product remanufacturing. Management Sci. 50(2):239–252.LinkGoogle Scholar
  • Sosa ME (2011) Design for environment. Ulrich K, Eppinger S, eds. Product Design and Development, 5th ed. (McGraw-Hill, New York).Google Scholar
  • Tarjanne R, Kivistö A (2008) Comparison of electricity generation costs. Research report, Faculty of Technology. Lappeenranta University of Technology, Lappeenranta, Finland.Google Scholar
  • Taylor TA, Plambeck EL (2007) Simple relational contracts to motivate capacity investment: Price only vs. price and quantity. Manufacturing Service Oper. Management 9(1):94–113.LinkGoogle Scholar
  • Tomlin B, Wang Y (2005) On the value of mix flexibility and dual sourcing in unreliable newsvendor networks. Manufacturing Service Oper. Management 7(1):37–57.LinkGoogle Scholar
  • Van Mieghem JA (2003) Commissioned paper: Capacity management, investment, and hedging: Review and recent developments. Manufacturing Service Oper. Management 5(4):269–302.LinkGoogle Scholar
  • Ventosa M, Baillo A, Ramos A, Rivier M (2005) Electricity market modeling trends. Energy Policy 33(7):897–913.CrossrefGoogle Scholar
  • Von der Fehr NH, Harbord DC (1997) Capacity Investment and Competition in Decentralised Electricity Markets, No. 7 (University of Oslo, Oslo, Norway).Google Scholar
  • Wilson NE, Newell RG, Burtraw D (2005) The Effect of Long-Term Generation Contracts on Valuation of Electricity Generating Assets Under the Regional Greenhouse Gas Initiative (Resources for the Future, Washington, DC).Google Scholar
  • Wu OQ, Kapuscinski R (2013) Curtailing intermittent generation in electrical systems. Manufacturing Service Oper. Management 15(4):578–595.LinkGoogle Scholar
  • Zhou Y, Scheller-Wolf AA, Secomandi N, Smith S (2011) Managing wind-based electricity generation with storage and transmission capacity. Working paper, Singapore Management University, Singapore.Google Scholar
INFORMS site uses cookies to store information on your computer. Some are essential to make our site work; Others help us improve the user experience. By using this site, you consent to the placement of these cookies. Please read our Privacy Statement to learn more.