Template-Type: ReDIF-Article 1.0
Author-Name:  Chi-Keung Woo, Ira Horowitz, Brian Horii, Ren Orans, and Jay Zarnikau
Title:  Blowing in the Wind: Vanishing Payoffs of a Tolling Agreement for Natural-gas-fired Generation of Electricity in Texas
Classification-JEL: F0
Pages:  
Volume:  Volume 33
Issue:  Number 1
Year:  2012
Abstract:  We use a large Texas database to quantify the effect of rising wind generation on the payoffs of a tolling agreement for natural-gas-fired generation of electricity. We find that while a 20% increase in wind generation may not have a statistically-significant effect, a 40% increase can reduce the agreement's average payoff by 8% to 13%. Since natural-gas-fired generation is necessary for integrating large amounts of intermittent wind energy into an electric grid, our finding contributes to the policy debate of capacity adequacy and system reliability in a restructured electricity market that will see large-scale wind-generation development.
Handle: RePEc:aen:journl:33-1-a08
File-URL: http://www.iaee.org/en/publications/ejarticle.aspx?id=2472
File-Format: text/html
File-Restriction: Access to full text is restricted to IAEE members and subscribers.