The experience curve effect on renewable energy penetration

Ilias P. Tatsiopoulos, Athanasios Rentizelas, A. Tolis

Research output: Chapter in Book/Report/Conference proceedingConference contribution book

Abstract

The experience curve effect has always challenged technology-related decisions. In the electricity sector, new renewable electricity generation technologies have shown a considerably high learning rate up to now, which could differentiate the profitability of energy generation technologies in the near future. The scope of this work is to investigate the effect that the Experience Curve of the renewable energy technologies may have on the orders for new electricity generation technologies and therefore, on the future electricity generation mix of Greece. The official renewable energy generation targets are considered as a constraint of the system, and the learning rates of the various technologies are included in the calculations. Three scenarios of learning rates have been applied, to examine the experience curve effect on renewable energy penetration. The national electricity generation system is modelled for long-term analysis and a linear programming method is applied, in order to come up with the optimal generating mix that minimizes electricity generation cost, while satisfying the national emissions reduction targets. In addition, two scenarios for future emission allowance prices are considered, in order to examine the effect of changes in this very volatile parameter. Furthermore, an investigation is made to identify if a point should be expected when renewable energy will be more profitable than conventional fuel electricity generation.
LanguageEnglish
Title of host publicationProceedings of the International Conference on Renewable Energie- ICRE 2010
Place of PublicationDamascus
Publication statusPublished - Apr 2010

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Electricity
Linear programming
Profitability
Costs

Keywords

  • energy policy
  • renewable energy economics
  • optimization
  • experience curve

Cite this

Tatsiopoulos, I. P., Rentizelas, A., & Tolis, A. (2010). The experience curve effect on renewable energy penetration. In Proceedings of the International Conference on Renewable Energie- ICRE 2010 Damascus.
Tatsiopoulos, Ilias P. ; Rentizelas, Athanasios ; Tolis, A. / The experience curve effect on renewable energy penetration. Proceedings of the International Conference on Renewable Energie- ICRE 2010. Damascus, 2010.
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title = "The experience curve effect on renewable energy penetration",
abstract = "The experience curve effect has always challenged technology-related decisions. In the electricity sector, new renewable electricity generation technologies have shown a considerably high learning rate up to now, which could differentiate the profitability of energy generation technologies in the near future. The scope of this work is to investigate the effect that the Experience Curve of the renewable energy technologies may have on the orders for new electricity generation technologies and therefore, on the future electricity generation mix of Greece. The official renewable energy generation targets are considered as a constraint of the system, and the learning rates of the various technologies are included in the calculations. Three scenarios of learning rates have been applied, to examine the experience curve effect on renewable energy penetration. The national electricity generation system is modelled for long-term analysis and a linear programming method is applied, in order to come up with the optimal generating mix that minimizes electricity generation cost, while satisfying the national emissions reduction targets. In addition, two scenarios for future emission allowance prices are considered, in order to examine the effect of changes in this very volatile parameter. Furthermore, an investigation is made to identify if a point should be expected when renewable energy will be more profitable than conventional fuel electricity generation.",
keywords = "energy policy, renewable energy economics, optimization, experience curve",
author = "Tatsiopoulos, {Ilias P.} and Athanasios Rentizelas and A. Tolis",
year = "2010",
month = "4",
language = "English",
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}

Tatsiopoulos, IP, Rentizelas, A & Tolis, A 2010, The experience curve effect on renewable energy penetration. in Proceedings of the International Conference on Renewable Energie- ICRE 2010. Damascus.

The experience curve effect on renewable energy penetration. / Tatsiopoulos, Ilias P.; Rentizelas, Athanasios; Tolis, A.

Proceedings of the International Conference on Renewable Energie- ICRE 2010. Damascus, 2010.

Research output: Chapter in Book/Report/Conference proceedingConference contribution book

TY - GEN

T1 - The experience curve effect on renewable energy penetration

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AU - Rentizelas, Athanasios

AU - Tolis, A.

PY - 2010/4

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N2 - The experience curve effect has always challenged technology-related decisions. In the electricity sector, new renewable electricity generation technologies have shown a considerably high learning rate up to now, which could differentiate the profitability of energy generation technologies in the near future. The scope of this work is to investigate the effect that the Experience Curve of the renewable energy technologies may have on the orders for new electricity generation technologies and therefore, on the future electricity generation mix of Greece. The official renewable energy generation targets are considered as a constraint of the system, and the learning rates of the various technologies are included in the calculations. Three scenarios of learning rates have been applied, to examine the experience curve effect on renewable energy penetration. The national electricity generation system is modelled for long-term analysis and a linear programming method is applied, in order to come up with the optimal generating mix that minimizes electricity generation cost, while satisfying the national emissions reduction targets. In addition, two scenarios for future emission allowance prices are considered, in order to examine the effect of changes in this very volatile parameter. Furthermore, an investigation is made to identify if a point should be expected when renewable energy will be more profitable than conventional fuel electricity generation.

AB - The experience curve effect has always challenged technology-related decisions. In the electricity sector, new renewable electricity generation technologies have shown a considerably high learning rate up to now, which could differentiate the profitability of energy generation technologies in the near future. The scope of this work is to investigate the effect that the Experience Curve of the renewable energy technologies may have on the orders for new electricity generation technologies and therefore, on the future electricity generation mix of Greece. The official renewable energy generation targets are considered as a constraint of the system, and the learning rates of the various technologies are included in the calculations. Three scenarios of learning rates have been applied, to examine the experience curve effect on renewable energy penetration. The national electricity generation system is modelled for long-term analysis and a linear programming method is applied, in order to come up with the optimal generating mix that minimizes electricity generation cost, while satisfying the national emissions reduction targets. In addition, two scenarios for future emission allowance prices are considered, in order to examine the effect of changes in this very volatile parameter. Furthermore, an investigation is made to identify if a point should be expected when renewable energy will be more profitable than conventional fuel electricity generation.

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Tatsiopoulos IP, Rentizelas A, Tolis A. The experience curve effect on renewable energy penetration. In Proceedings of the International Conference on Renewable Energie- ICRE 2010. Damascus. 2010