Energy
A Proposal for Real-Time Pricing Tariffs for Large Electricity Customers
As Oahu’s electric grid transitions to clean energy, characterized by variable wind, solar, and storage resources, the marginal cost of electricity will become increasingly variable across time and location. Consequently, the value of using locational marginal prices (LMP) for customer billing and compensating distributed generation will increase significantly. This report outlines a proposal to implement […]
Read MoreOptimal transmission expansion minimally reduces decarbonization costs of U.S. electricity
Solar and wind power are cost-competitive with fossil fuels, yet their intermittent nature presents challenges. Significant temporal and geographic differences in land, wind, and solar resources suggest that long-distance transmission could be particularly beneficial. Using a detailed, open source model, we analyze optimal transmission expansion jointly with storage, generation, and hourly operations across the three […]
Read MoreEffects of alternative pricing structures on electricity consumption and payments in the commercial and industrial sector
Abstract: We investigate the distributional and welfare impacts when commercial and industrial (C&I) electricity end users face a dynamic pricing structure as opposed to a constant volumetric price with demand charge on individual users’ peak usage. While demand charge does not necessarily reduce the system-wide peak, it often constitutes a large share of C&I users’ […]
Read MoreEmbracing TOU: Nudges, Rates, and Renewable Energy
By Michael Roberts, Nori Tarui and Ethan Hartely Hawaiian Electric Company is about to embark on a significant experiment: a pilot program introducing time-of-use (TOU) pricing. Designed to reduce electricity prices during daylight hours when solar power is abundant and increase them during the evening when the sun sets and demand rises, this initiative could […]
Read MoreA Comparison of State-Level Carbon Reduction Strategies: A Case Study of Hawai‘i
Abstract: State-level electricity standards are proliferating and becoming more ambitious, with numerous US states adopting a Renewable Portfolio Standard (RPS) and a small but increasing number of states participating in carbon pricing programs. The State of Hawai‘i has an ambitious RPS that requires 100% electricity generation through renewable sources by 2045. This study uses a […]
Read MoreReal-Time Pricing and the Cost of Clean Power
Solar and wind power are now cheaper than fossil fuels but are intermittent. The extra supply-side variability implies growing benefits of using real-time retail pricing (RTP). We evaluate the potential gains of RTP using a model that jointly solves investment, supply, storage, and demand to obtain a chronologically detailed dynamic equilibrium for the island of […]
Read MoreAre We Building Too Much Natural Gas Pipeline? A comparison of actual US expansion of pipeline to an optimized plan of the interstate network
Interstate natural gas transmission and storage infrastructure is facilitated using regulated, private transactions. Pipeline companies obtain long-term contracts from producers and wholesale purchasers, typically local distribution companies (LDCs). In the past, the Federal Energy Regulatory Commission (FERC) accepted these counterparty contracts as sufficient justification of need. Typically the LDCs are themselves regulated firms, which sometimes […]
Read MoreEconomic and GHG impacts of a US state-level carbon tax: the case of Hawai’i
A new paper by a team from UHERO published in Climate Policy finds that a carbon tax for Hawai‘i set at the federal social cost of carbon would reduce cumulative GHG emissions by 10% relative to the baseline from 2025 to 2045. They find that when carbon tax revenues are paid as equal-share dividends to Hawai‘i […]
Read MoreDoes air pollution increase electric vehicle adoption? Evidence from U.S. metropolitan areas, 2011–2018
A publication in the Journal of Environmental Economics and Policy by a team of economists including UHERO’s Coffman, Hayashida, and La Croix shows that changes in local air pollution within U.S. metropolitan areas are associated with changes in consumer purchases of new EVs. The authors find a positive association between PM2.5 pollution and BEV adoption, and a negative […]
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