Increase In Electricity Prices Research Articles

Macroeconomic, demographic and climatic indicators for household electricity consumption model in Cyprus

ABSTRACT By 2030 Cyprus committed to reduce greenhouse gas emissions by 40% and increase renewables’ energy share by 19% according to the European engagements. Difficulties appear due to the continuous increase in domestic energy consumption, the large dependency on fossil fuels and the adverse climate. A number of macroeconomic, demographic and climatic indicators that influence Cyprus’s electricity consumption (EC) was analysed for years 2000–2018 using augmented Dickey–Fuller unit root test and the autoregressive distributed lag model (ARDL). The ARDL model revealed that an increase in population could radically increase EC in the long-run and short-run. Results posit that a 1% increase in urban population, electricity price and unemployment decrease domestic EC in the long-run by 17.25%, 0.48% and 0.30%, respectively. In the short-run smaller elasticities were found because time was too short for adjustments to be made. However, their decrease could not outweigh the population growth effect on increasing domestic EC.

Optimizing transportation in the precast concrete plants

In addition to aggregates, cement, water and reinforcement, transportation is one of the key aspects in operating a precast concrete manufacturing plant. The cost of transportation in precast concrete manufacturing plants is closely related to electricity prices. Despite intensive efforts to implement renewable energy sources, still, 2/3 are non-renewable sources, such as coal, natural gas and oil. Taking into account the negative impact on the environment associated with the exploration of non-renewable resources and the observed increase in electricity prices, it is necessary to find alternative solutions that minimize environmental and financial costs. The paper presents a model for the selection of optimal transportation system inside the precast concrete manufacturing plant. It ensures the fullest possible use of equipment resources, in this case, rail trolleys capacity, and minimization of their journey number. The paper describes three internal transportation systems that are shuttle, radial and circular. Moreover, the paper contains a case study, concerning the determination of the optimal transportation program between workstations. As a result of the analyses carried out, a model was developed, including the strategy of journey planning with the assumption of minimum costs and maximum use of the capacity of rail trolleys.

Tightening EU ETS targets in line with the European Green Deal: Impacts on the decarbonization of the EU power sector

The EU Green Deal calls for climate neutrality by 2050 and emission reductions of 50–55% in 2030 in comparison to 1990. Achieving these reductions requires a substantial tightening of the regulations of the EU emissions trading system (EU ETS). This paper explores how the power sector would have to change in reaction to a tighter EU ETS target, and analyses the technological and economic implications. To cover the major ETS sectors, we combine a detailed power sector model with a marginal-abatement cost curve representation of industry emission abatement. We find that tightening the target would speed up the transformation by 3–17 years for different parts of the electricity system, with renewables contributing 74% of the electricity in 2030, EU-wide coal use almost completely phased-out by 2030 instead of 2045, and zero electricity generation emissions reached by 2040. Carbon prices within the EU ETS would more than triple to 129€/tCO2 in 2030, reducing cumulated power sector emissions from 2017 to 2057 by 54% compared to a scenario with the current target. This transformation would come at limited costs: total discounted power system costs would only increase by 5%. We test our findings against a number of sensitivities: an increased electricity demand, which might arise from sector coupling, increases deployment of wind and solar and prolongs gas usage. Not allowing transmission expansion beyond 2020 levels shifts investments from wind to PV, hydrogen and batteries, and increases total system costs by 3%. Finally, the unavailability of fossil carbon capture and storage (CCS) or further nuclear investments does not impact results. Unavailability of bioenergy-based CCS (BECCS) has a visible impact (18% increase) on cumulated power sector emissions, thus shifting more of the mitigation burden to the industry sector, but does not increase electricity prices or total system costs (<1% increase).

Economics of Battery Use in Agriculture: Economic Viability of Renewable Energy Complemented with Batteries in Agriculture

The production of renewable energy fluctuates in terms of sun and wind and must be supplemented by storage in the system. On an individual basis, i.e., for centralized electricity production and predominantly self-consumption, the use of batteries is considered here. Possible future development scenarios were simulated based on current price relationships (status quo). In the status quo, a selling price for PV electricity of 13 Euro cents (ct)ct/kWh was assumed with a production cost of 11 ct/kWh. The selling price of wind power is 5 ct/kWh with a production cost of 3 ct/kWh. The cost of storing electricity in a battery increases the price by 33 ct/kWh. A price of 20 ct/kWh is assumed for electricity purchases by companies. In the status quo, the use of batteries is not economical given the assumed price relationships. Changing the framework conditions, such as those of the legislature in Germany with the nuclear power phase-out and in the EU with the coal exit and decarbonization, will lead to increased availability of (fluctuating) renewable electricity, especially during the day. The purchase of electricity at other times, when the supply is scarce, can lead to increased electricity prices, especially at night. Together with falling costs for storage, the use of batteries for centralized power generators could be very interesting in the future. The method used in this study is nonlinear optimization of the target function costs of electricity supply in the developed simulation model. The results can also be transferred to other countries, as the assumed trends apply worldwide.

The effect of increasing electricity price on rebound effect in Iran by computable general equilibrium

The effect of increasing electricity price on rebound effect in Iran by computable general equilibrium

The Effects of Renewable Portfolio Standards and the Deregulation of Energy Markets on Electricity Prices

Renewable Portfolio Standards (RPS) are public policies put into effect to help alleviate the harmful consequences of air pollution. Every state has a unique form of standards corresponding to their natural resources. More states have implemented the policy to increase the generation of renewable energy; however, many stand opposed to the policy in fear that it will increase electricity prices. The influence that RPS has on the price of electricity is not entirely understood. Previous literature confirms that RPS, on average, increases prices by three percent. This paper focuses on analyzing the effect of RPS on electricity rates over a longer period. Furthermore, it incorporates the effect of various forms of energy deregulation across state energy markets. Results confirm that RPS does increase electricity rates in states with regulated energy markets; however, the implementation of retail choice and wholesale market access reverses these findings and decreases electricity prices overall. Individuals across the country will be able to make a more informed decision on public policies related renewable energy with this analysis.

Bulgarian Renewable Energy in the Context of the Contemporary Trends

The aim of the article is to analyze the results of the Bulgarian renewable energy policy in the context of the EU aims and global renewable energy system (RES) investments till 2014. The policy is examined through comparison of the aims as stated in the National Renewable Energy Action Plan (NREAP) of Bulgaria and the achieved results. They are evaluated in respect of renewables share in final energy consumption, greenhouse gas emissions, and household access to green energy sources. The main outcomes show a low level of decentralized energy generation and pressure upon electricity price increase.

Uticaj tržišnih cena električne energije na isplativost buduće reverzibilne hidroelektrane u Srbiji

Deregulation in the power sector, liberalization of the electricity market, tendency to connect markets across Europe, introduction of incentives for construction and use of renewable energy sources (RES) and - consequently - their increasing presence in electricity systems, have taken a decisive impact on wholesale electricity prices. In addition, the introduction of CO2 taxes has further increased overall electricity prices. On the other hand, it reduced the profits of fossil fuel thermal power plants (TPPs). Also, in order to meet the prescribed requirements in the field of environmental protection, TPPs must apply pollution prevention systems that are very expensive, both in terms of investment and exploitation. As an alternative, investments in the hydro sector should be considered. However, this option is characterized by other issues; In contrast to the long-term construction and exploitation of hydro capacity, there are fluctuations in electricity prices on the day-ahead market which affect the work schedule and revenues of these facilities. To investigate this problem, hourly and daily prices in the regional electricity market were analysed. Trends in wholesale electricity prices on the day-ahead market have been determined. Their relevant values were estimated and used as one of the sets of input data for cost-benefit analysis and sensitivity analysis of the case study - future reversible hydropower plant (RHPP) "Bistrica". The impact of fluctuations in electricity prices on the day-ahead market was emphasized. The aim of this research was to draw a conclusion as to whether the movement of these prices is in favour of the construction of possible RHPPs in Serbia. Based on the conducted analyses, it can be concluded that the upward trend in the level of wholesale electricity prices (which began in 2019 and is expected to continue in the future considering the EU regulatory policy regarding CO2 emissions taxes) may positively affect the profitability of investment in RHE Bistrica (i.e. to shorten the payback period), but not so dramatically, since with the increase in electricity prices, the costs for pumping also increase.

An Improved Technique for Energy-Efficient Starting and Operating Control of Single Phase Induction Motors

The recent increase in electricity prices and the usage of single-phase induction motors (SPIMs) provide a stimulus for a focused research on energy-efficient optimization of SPIM load such as air-conditioners and refrigerators. Variable speed control of SPIM provides a promising way forward to reduce its power consumption. However, during variable speed operation under the popular constant <inline-formula xmlns:mml="http://www.w3.org/1998/Math/MathML" xmlns:xlink="http://www.w3.org/1999/xlink"> <tex-math notation="LaTeX">$V/f$ </tex-math></inline-formula> method, SPIM is required to operate at non-rated conditions. The operation of SPIM at non-rated conditions disturbs its symmetrical and balanced operation, thus degrading its efficiency. Moreover, soft-starting of SPIM at non-rated conditions is also challenging due to the resulting reduction in starting-torque. In this article, after a detailed analysis of SPIM energy-efficiency, an improved sensor-less optimal speed control strategy is developed to enable the symmetrical and balanced operation of SPIM at all the operating points over the entire speed-range to improve its performance. A novel algorithm, termed as the phase-shift algorithm, is also devised for efficient implementation of the proposed optimal speed control strategy. In addition, a unique framework for efficient soft-starting of SPIM at very low frequencies is also developed. The simulation-based results of the motor operated through the proposed phase-shift algorithm validate the energy-saving potential of the proposed control strategy.

Evaluation of the economic impact of electricity prices change (Azerbaijan case)

This paper has examined the impact of electricity tariff changes to other economic sectors, as well as to potential changes of price levels in the overall economy. In this regard, the authors have applied the Inter-Industry Balance Model and its modification, i.e. Equilibrium Price Multiplier Model. The authors have also empirically built the inter-industry balance and equilibrium price models for the case of Azerbaijan’s economy, and conducted analysis and assessments for this case. The inter-industry balance tables of production and distribution of products and services, officially published by the State Statistical Committee of the Republic of Azerbaijan, were taken as the primary database for this study. It should be noted that the inter-industry balance model for Azerbaijan was built based on 96 sectors of the economy. The model was used to assess the economic impact of electricity price changes in the national economy. Finally, simulations relevant to 10, 20 and 30 percent increase of electricity prices were conducted and potential impacts to Azerbaijan’s economy were assessed. The obtained results were analyzed and summarized.

Large scale and rooftop solar generation in the NEM: a tale of two renewables strategies

Solar generation has increased dramatically over recent years, breaking world records of meeting 100% of the electricity demand on occasion in Australia’s National Electricity Market (NEM). Solar output variability coupled with rooftop solar impact on demand as a behind-the-meter resource poses challenges to electricity price stability. Using 30-minute intraday data, we investigate how electricity spot prices are impacted by the rapid uptake of large-scale and rooftop solar generation in the NEM. We find that, on average, both large-scale and rooftop solar generation depress the level of spot prices and positively impact price volatility. However, over 30-minute intervals, we find that solar generation tends to increase electricity prices in the early morning and in the evening due to the high cost of traditional fossil-fuelled generators required to meet the lost output when the sun is below the horizon. While large-scale solar generation typically smooths spot price volatility, rooftop solar tends to increase it, reflecting the dominance of axis-tracking systems in the former and north-facing systems in the latter. The increasing incidences of variable renewable energy curtailment undermine the merit order effect in the middle of the day but with the benefit of reducing price variability. Moreover, solar generation impact on electricity prices differs substantially across seasons. Our results stress the need for policy adjustment to increase the correlation between solar output and electricity demand through small-scale renewable energy schemes and state-based policies, rooftop solar curtailment, dynamic feed-in tariffs, and two-sided market reform.

South African Residential Electricity Price Increase Between 2013 and 2020: An Online Desktop Study

South African Residential Electricity Price Increase Between 2013 and 2020: An Online Desktop Study

Reingeniería aplicada al sistema de iluminación en una organización industrial

INTRODUCCIÓN. El incremento de los precios en la energía eléctrica, el cambio climático, ha impulsado el cambio del mercado mundial de la iluminación hacia fuentes de luz energéticamente más eficientes, mediante un estudio de iluminación para la industria en general. OBJETIVO. Se realiza la toma de muestras y se aplica el procedimiento, para establecer su incidencia en la productividad en una organización industrial. MÉTODO. La investigación se desarrolla bajo un enfoque mixto y bibliográfico. Además, se respalda con un trabajo de campo. RESULTADOS. Los niveles de iluminación encontrados fueron contrastados con la Norma Europea (UNE-EN 12 464-1, 2003) (Iluminación en puestos de trabajo), con la cual se comprobó que los mismos no cumplen con la norma citada, presentando un 40% de incumplimiento, para el área objeto de estudio. DISCUCIÓN Y CONCLUSIONES. Asimismo, se empleó el software de diseño y simulación DIALux evo 8.2, para desarrollar una propuesta del sistema de iluminación. Se comprueba, a través de Indicadores de productividad, un aumento del mismo en el orden de un 80% respecto a la producción y el costo de la energía eléctrica.

Cost Optimization of a Zero-Emission Office Building

The cost-effectiveness of energy efficiency measures meant to achieve a zero-emission office building is investigated and compared to business as usual energy efficiency measures. The laboratory for zero emission buildings, the ZEB Lab, located in Trondheim, Norway, is an office building designed and built to compensate its lifecycle emissions with the use of a large array of building-integrated photovoltaic panels, pursuing a zero-emissions ambition level. Three design alternatives are investigated by downgrading the building insulation level to the values recommended by the currently enforced Norwegian building code, the byggteknisk forskrift TEK17. A sensitivity analysis of the variation of the installed area of the photovoltaic panels is performed to evaluate if smaller areas give better cost performances. Net present values are calculated by using three scenarios of future increase of electricity price for a time horizon of 20 years. Results show that business as usual solutions give higher net present values. Optimized areas of the photovoltaic panels further increase the net present values of the business as usual solutions in the highest electricity price scenario. The zero-emission ambition level shows a higher net present value than that of the business as usual solutions for a time horizon of at least 36 years.

Energy price reform in Saudi Arabia: Modeling the economic and environmental impacts and understanding the demand response

Saudi Arabia has regulated domestic energy prices for decades, setting them below international market levels. Energy subsidies in Saudi Arabia are generally implicit because they lead to foregone revenues for the government. Low energy prices also encourage rapid energy demand growth and wasteful consumption, while limiting incentives to invest in energy efficiency. Saudi Arabia recently started to reform energy prices, leading to large increases in gasoline and residential electricity prices in 2018. To measure the economic and environmental impacts of energy price reform, we econometrically model gasoline and residential electricity demand using Harvey's (1990) Structural Time Series Model. Our estimated equations reveal that gasoline demand and residential electricity demand in Saudi Arabia are strongly price and income inelastic, despite the major reforms that were recently implemented. Our welfare analysis also shows that the energy price reforms in 2018 in gasoline and residential electricity respectively delivered welfare gains of 8.8 and 3.8 billion SAR annually (2.3 and 1.0 billion US$). Additionally, our decomposition analysis reveals that these energy price reforms were the largest contributors to the observed decreases in gasoline and residential electricity consumption in 2018.

Wind Generation and the Dynamics of Electricity Prices in Australia

Australia's National Electricity Market (NEM) is experiencing one of the world's fastest and marked transitions toward variable renewable energy generation. This transformation poses challenges to system security and reliability and has triggered increased variability and uncertainty in electricity prices. By employing an exponential generalized autoregressive conditional heteroskedasticity (eGARCH) model, we gauge the effects of wind power generation on the dynamics of electricity prices in the NEM. We find that a 1 GWh increase in wind generation decreases daily prices up to 1.3 AUD/MWh and typically increases price volatility up to 2%. Beyond consumption and gas prices, hydro generation also contributes to an increase in electricity prices and their volatility. The cross-border interconnectors play a significant role in determining price levels and volatility dynamics. This underscores the important role of strategic provisions and investment in the connectivity within the NEM to ensure the reliable and effective delivery of renewable energy generation. Regulatory interventions, such as the carbon pricing mechanism and nationwide lockdown restrictions due to COVID-19 pandemic, also had a measurable impact on electricity price dynamics.

Simulation of a GEF5 Gas Turbine Power Plant Using Fog Advanced Cycle and a Systematic Approach to Calculate Critical Relative Humidity

The ambient conditions have a significant effect on the generated power and efficiency of gas turbines [1]. These variations considerably affect power generation, fuel consumption, power plant emissions, and plant incomes. However, cooling the compressor inlet air has been widely used to reduce this deficiency [2]. In this paper, by simulating a specific gas unit in Thermoflow software, the effect of the FOG system on it was studied. Considering the error in determining the capacity of cooling systems based on the average values of dry and wet bulb temperatures, or even considering the worst possible temperature and humidity conditions, it is advisable to use ECDH or Evaporation cooling Degree Hours. Accordingly, by calculating ECDH under at ambient temperatures above 15 °C and changing the conditions of the model, the total production increase of the unit was estimated to be 4.7×106 kWh. In addition, the effect of relative humidity on payback time was examined, which illustrated the critical relative humidity for a gas unit would depend on the price of fuel, the purchase price of electricity, the design parameters of the unit and the expected payback time. For this gas unit, critical relative humidity was monitored based on expected payback time and electricity purchase price. Results showed that for a certain electricity price, at the shorter PBT, the critical RH is lower; therefore, the temperature drop and power enhancement will be greater. In addition, at a certain PBT, as the electricity price increases, the critical RH for the same PBT will be higher.

Modeling the Household Electricity Usage Behavior and Energy-Saving Management in Severely Cold Regions

Accurate simulation and prediction of occupants’ energy use behavior are crucial in building energy consumption research. However, few studies have focused on household energy use behavior in severely cold regions that have unique energy use patterns because of the low demand of cooling in summer and the use of central heating system in winter. Thus, we developed an agent-based model to simulate the household electricity use behavior in severely cold regions, according to data for Harbin, China. The model regards apartments, residents, household appliances, and energy-management departments as agents and generates the household electricity consumption with respect to time, temperature, and energy-saving events. The simulation parameters include basic information of the residents, their energy-saving awareness, their appliance use behaviors, and the impact of energy-saving management. Electricity use patterns are described by decision-making mechanisms and probabilities obtained through a questionnaire survey. In the end, the energy-saving effects of different management strategies are evaluated. The results indicate that the model can visually present and accurately predict the dynamic energy use behavior of residents. The energy-saving potential of household electricity use in severely cold regions is mainly concentrated in lighting and standby waste, rather than cooling and heating, since the cooling demand in summer is low and the heating in winter mainly relies on central heating system of the city, not on household electricity appliances. Energy-saving promotion can significantly reduce the amount of energy waste (41.89% of lighting and 97.79% of standby energy consumption), and the best frequency of promotional events is once every four months. Residents prefer incentive policies, in which energy-saving effect is 57.7% larger than that of increasing electricity prices. This study realized the re-presentation of the changes of energy consumption in a large number of households and highlighted the particularity of household energy-saving potential in severely cold regions. The proposed model has a simple structure and high output accuracy; it can help cities in severely cold regions formulate energy-saving management policies and evaluate their effects.

Policy Framework for Iran to Attain 20% Share of Non-Fossil Fuel Power Plants in Iran’s Electricity Supply System by 2030

This paper presents a comprehensive model on the expansion of non-fossil technology to evaluate the impact of increasing their share in Iran’s electricity supply system. This analytical approach is based on system dynamics (SD), with an emphasis on the expansion of non-fossil fuels in the supply side of this model. Four emerging electricity generation technologies of solar photovoltaics, wind turbines, expansion turbines, and hydro power are considered in the model, and the effect of electricity price on increasing the motivation of the owners of non-fossil fuel power plants to guarantee their 20% share is examined. The Iranian government has set a target of a 20% share of non-fossil fuel electricity generation by 2030, whose main result is reducing GHG emissions to achieve the targets pledged under the Paris Climate Accord. Therefore, we developed four scenarios with different expansions of non-fossil technologies in Iran’s electricity system to investigate the goal, though various barriers exist that must be addressed through effective policies in order to facilitate the expansion of non-fossil fuel power plants in the electricity supply system. The findings demonstrate that electricity price must be determined based on the costs of non-fossil technologies, as well as based on fossil fuel prices which are low in the current energy supply system. In conclusion, the Paris Climate Accord criteria is achieved with a 20% growth of non-fossil fuels and increasing electricity price to 920 IRR/kWh in 2030.

The impacts of price regulation on price dispersion in Australia's retail electricity markets

Price deregulation in Australia's National Electricity Market has led to increased competition and greater price dispersion in retail electricity markets. However, recent increases in electricity prices and concerns around disengaged customers have led policy makers to impose a ‘default offer’ to cap retail electricity prices. In this article, we develop a model that demonstrates the mechanism through which a price cap leads to the withdrawal of the lowest priced offers from the market, in effect reducing the benefits available to customers that ‘shop around’. We calculate a measure of actual price dispersion showing that a compression of offers since the price cap was imposed has reduced the returns from search by 2.3 per cent, or $37 per year on average. We argue that the important issue of vulnerable, disengaged customers on high priced offers is best addressed through non-price regulation policy options, such as an auction for the right to serve customers that are both vulnerable and disengaged.