Optimal Dynamic Management of a Renewable Energy Source under Uncertainty

Details

Ressource 1Download: BIB_DC503AA380B8.P001.pdf (597.55 [Ko])
State: Public
Version: author
Serval ID
serval:BIB_DC503AA380B8
Type
Unpublished: a document having an author and title, but not formally published.
Collection
Publications
Title
Optimal Dynamic Management of a Renewable Energy Source under Uncertainty
Author(s)
Bobtcheff Catherine
Issued date
2007
Notes
Cahier du LERNA 06.21.214 - submitted for publication
Abstract
We consider a risk averse and prudent social planner who has access to different energy sources to produce electricity: hydroelectricity produced with a dam and thermal electricity with unlimited supply at some exogenous cost. The dam is supplied with a random water flow. The presence of constraints on a minimal and on a maximal storage capacity makes electricity consumption smoothing possible only when the quantity of water available to the agent lies in a certain range that we determine. Consumption smoothing is possible even when the dam is almost empty thanks to the alternative costly energy source. Moreover a comparative static analysis reveals that the marginal propensity to produce hydroelectricity is an increasing function of the cost of the second technology. Therefore, the availability at a low cost of the fossil source improves time diversification. Finally, the optimal electric park is composed of a number of dams that is increasing with the cost of the second technology.
Keywords
K3
Create date
19/11/2007 11:50
Last modification date
20/08/2019 17:01
Usage data