Year: 2011
Type: article
Abstract: Economic evaluations of alternative electric generating technologies typically rely on comparisons between their expected “levelized cost” per MWh supplied. I demonstrate that this metric is inappropriate for comparing intermittent generating technologies like wind and solar with dispatchable generating technologies like nuclear, gas combined cycle, and coal. It overvalues intermittent generating technologies compared to dispatchable base load generating technologies. It also likely overvalues wind generating technologies compared to solar generating technologies. Integrating differences in production profiles, the associated variations in wholesale market prices of electricity, and life-cycle costs associated with different generating technologies is necessary to provide meaningful comparisons between them.
Source: American Economic Review
Author: Paul L Joskow
Institution: Alfred P. Sloan Foundation
Language: English
Field: Energy
Domain: Physical Sciences
Open Access status: green
OpenAlex ID: W2138380733