An economic evaluation of the potential for distributed energy in Australia

Lilley, William E., Reedman, Luke J., Wagner, Liam D., Alie, Colin F. and Szatow, Anthony R. (2012) An economic evaluation of the potential for distributed energy in Australia. Energy Policy, 51 277-289. doi:10.1016/j.enpol.2012.08.008

Author Lilley, William E.
Reedman, Luke J.
Wagner, Liam D.
Alie, Colin F.
Szatow, Anthony R.
Title An economic evaluation of the potential for distributed energy in Australia
Journal name Energy Policy   Check publisher's open access policy
ISSN 0301-4215
Publication date 2012
Sub-type Article (original research)
DOI 10.1016/j.enpol.2012.08.008
Volume 51
Start page 277
End page 289
Total pages 13
Place of publication Oxford, United Kingdom
Publisher Elsevier
Collection year 2013
Language eng
Abstract We present here economic findings from a major study by Australia's Commonwealth Scientific and Industrial Research Organisation (CSIRO) on the value of distributed energy technologies (DE; collectively demand management, energy efficiency and distributed generation) for reducing greenhouse gas emissions from Australia's energy sector (CSIRO, 2009). The study covered potential economic, environmental, technical, social, policy and regulatory impacts that could result from their wide scale adoption. Partial Equilibrium modeling of the stationary energy and transport sectors found that Australia could achieve a present value welfare gain of around $130 billion when operating under a 450 ppm carbon reduction trajectory through to 2050. Modeling also suggests that reduced volatility in the spot market could decrease average prices by up to 12% in 2030 and 65% in 2050 by using local resources to better cater for an evolving supply–demand imbalance. Further modeling suggests that even a small amount of distributed generation located within a distribution network has the potential to significantly alter electricity prices by changing the merit order of dispatch in an electricity spot market. Changes to the dispatch relative to a base case can have both positive and negative effects on network losses.
Keyword Distributed energy
Economic modeling
Electricity markets
Q-Index Code C1
Q-Index Status Confirmed Code
Institutional Status UQ
Additional Notes Available online 28 September 2012.

Document type: Journal Article
Sub-type: Article (original research)
Collections: Official 2013 Collection
School of Economics Publications
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Created: Fri, 28 Sep 2012, 22:26:45 EST by Dr Liam Wagner on behalf of School of Economics