Source: NORTH CAROLINA STATE UNIV submitted to NRP
INTEGRATION OF RENEWABLE ENERGY
Sponsoring Institution
National Institute of Food and Agriculture
Project Status
COMPLETE
Funding Source
Reporting Frequency
Annual
Accession No.
1012333
Grant No.
(N/A)
Cumulative Award Amt.
(N/A)
Proposal No.
(N/A)
Multistate No.
(N/A)
Project Start Date
Feb 24, 2017
Project End Date
Sep 30, 2021
Grant Year
(N/A)
Program Code
[(N/A)]- (N/A)
Recipient Organization
NORTH CAROLINA STATE UNIV
(N/A)
RALEIGH,NC 27695
Performing Department
Agricultural and Resource Economics
Non Technical Summary
Generation of electricity from renewable resources, particularly wind and solar, has increased dramatically in the past decade in the U.S. and particularly in North Carolina. This increased penetration of renewable resources has greatly affected the operation of existing fossil-fuel-fired generators and utilities' operations more generally. However, the responseto this increased renewable generation may not be uniform across generators and utilities for a host of reasons. Understanding how existing fossil-fuel-fired plants respond to increasing renewable generation and how that response varies across plants and regions of the country is therefore crucial in understanding the potential benefits and costs of increased renewable generation. The first poart of this reasearch proposal attempts to empirically identify variations in responses to renewable power and then further explain why certain plants are responding the way they are in order to better understand the regional implications of renewable generation.The second part of this research proposal aims to identify how future policies related renewable power generation, as well as adoption of new generation and transmission technologies, will affect the welfare of producers and consumers. To do this, I will use economic principles to develop so-called expansion planning models, which simulate the build of out of the energy infrastructure under a variety of policy, technological, and market scenarios. The model will then be useful in describing tradeoffs amongvarious policy and market design proposals both in North Carolina and nationally.Intellectual Merit:Research under the first theme will use data collected on the operations of individual electricity generating units, as well as data from utilities more broadly, to identify operational impacts associated with increased renewable generation. This will make a contribution to the energy and environmental economics literature by identifying heterogeneity in responses to renewables and further explaining why such heterogeneous responses are found. The second part of the porposal will make contributions to the literature by more accurately incorporating consumers tradeoffs betweenenergy efficiency and energy consumption, combined in an generation expansion and dispatch model. This will allow for a richer analysis of various energy and efficiency policy proposals.Broader Impacts:Together this body of research will make an intellectual contribution to the sustainable energy systems field as a whole, contribute to the training of multi-discplinary undergraduates and graduates, and build collaborative bridges between a number of disciplines, particularly those in environmental engineering, electrical engineering, and economics. Across multiple academic departments at NCSU, this work will also build capacity in the energy systems modeling field.
Animal Health Component
20%
Research Effort Categories
Basic
60%
Applied
20%
Developmental
20%
Classification

Knowledge Area (KA)Subject of Investigation (SOI)Field of Science (FOS)Percent
60561103010100%
Goals / Objectives
The general goal of this project is to assess the impact that integrating renewable electricity generation will have on existing generating facilities, electric utilities, and consumers. The specific objectives of the project are:1. Econometrically estimate various generation, environmental, and capital cost impacts associated the increasing deployment of renewable electricity generation assets.2. Develop expansion planning models, inclusive of atheoretically consistent demand sector, to examine how various policies and technological advancements will affect future generation mixes both nationally and in North Carolina.
Project Methods
Given that my appointment is 70% research, the main efforts of this model will use econometric modeling and computer simulation modeling of energy systems. This research will be evaluated on the basis of peer-reviewed academic papers. As teaching makes up the remaining 30% of my appointment, my teaching objectives will be evaluated through mandated teaching evaluations, both by students and peers.

Progress 10/01/17 to 09/30/18

Outputs
Target Audience:The primary target audience is the research community in economics doing work in energy and environmental economics. My research is also meant to inform policy makers, at the state, federal, and international levels implementing policies aimed at influencing renewable energy deployment. Finally, I contribute to less technical papers that are aimed more toward the popular press. Changes/Problems: Nothing Reported What opportunities for training and professional development has the project provided? Nothing Reported How have the results been disseminated to communities of interest?The results were distributed via the published journal articles. In addition, for the paper"The Fall of Coal: Joint Impacts of Fuel Prices and Renewables on Generation and Emissions", there was an official NCSU press release regarding the research. There was also a piece written about the paper by the American Economics Association and I also did an interview with the organization that was posted on their website. What do you plan to do during the next reporting period to accomplish the goals?I am continuing to write research papers that further our understanding of the costs and benefits associated with further renewable energy integration. This work includes research on how we can accompany energy storage and transmission expansion with renewable energy development. I am also working on projects exploring the human health benefits associated with renewable energy expansion. Finally, I am continuing my work on exploring the impacts of renewable energy on electricity markets.

Impacts
What was accomplished under these goals? The three research papers published in this period all contributed to the goals of the project. In the paper "The Fall of Coal: Joint Impacts of Fuel Prices and Renewables on Generation and Emissions" my co-author (Daniel Kaffine) and I econometrically estimated how the rise of wind energy has, in part, led to the decline in coal-fired generation in the U.S. In the article "Leakage in Regional Environmental Policy: The Case of the Regional Greenhouse Gas Initiative" my co-author (Peter Maniloff) and I examined howRegional Greenhouse Gas Initiative (RGGI), a carbon cap-and-trade program for power plants in the Northeast that also partially supports renewable energy, has changed generation patterns across technologies both within the RGGI region and among bordering states. Finally, in the paper "Restructuring and Natural Gas Plant Operations", my co-author and former graduate student advisee Matt Doyle and I examined how electricity market restructuring affected the incentives for efficiency in response to relative fuel price changes for natural gas fired power plants. While this paper does not directly relate to renewables, it does show us the potential for efficiency improvements among natural gas plants which is key in modeling future expansions of renewable energy.

Publications

  • Type: Journal Articles Status: Published Year Published: 2018 Citation: Fell H., and D. Kaffine. The Fall of Coal: Joint Impacts of Fuel Prices and Renewables on Generation and Emissions. American Economic Journal: Economic Policy, 2018, 10(2): 90-116
  • Type: Journal Articles Status: Published Year Published: 2018 Citation: Fell, H. and P. Maniloff. Leakage in Regional Environmental Policy: The Case of the Regional Greenhouse Gas Initiative, Journal of Environmental Economics and Management, 2018, 87: 1-23
  • Type: Journal Articles Status: Published Year Published: 2018 Citation: Doyle, M. and H. Fell. Fuel Prices, Restructuring, and Natural Gas Plant Operations. Resource and Energy Economics, 2018, 52: 153-172.


Progress 02/24/17 to 09/30/17

Outputs
Target Audience:I have been contacted by several news agencies during this reporting period that have asked about my research, including WUNC and the Washington Post. I have also attended academic conferences to present this work of have it presented by collaborators. Changes/Problems: Nothing Reported What opportunities for training and professional development has the project provided? Nothing Reported How have the results been disseminated to communities of interest?I have been contacted by various news agencies to discuss my research in these areas. What do you plan to do during the next reporting period to accomplish the goals?During the next reporting period I plan to: 1) Finish a draft of the econometric paper examining the role of transmission capacity in achieving greater environmental value of renewable electricity generation assets. 2) Submit a manuscript to an academic journal for the paper that develops expansion planning models with demand systems that are theoretically consistent.

Impacts
What was accomplished under these goals? I have worked with colleagues at NCSU to further the development of expansion planning models with theoretically consistent demand sectors. This project is nearing completion of a new working paper. I am also currently working on an empirical examination of how increased transmission capacity alters the environmental value of renewable electricity generation.

Publications

  • Type: Journal Articles Status: Accepted Year Published: 2017 Citation: Galik, C., J. DeCarolis, and H. Fell. Evaluating the U.S. Mid-Century Strategy for Deep Decarbonization Amidst Early Century Uncertainty. Climate Policy, 2017, 8: 1046-1056.