@article{Duan:277525,
      recid = {277525},
      author = {Duan, J. and McKenna, A. and Van Kooten, G.C. and Liu, S.},
      title = {Renewable Electricity Grids, Battery Storage and Missing  Money: An Alberta Case Study},
      address = {2018-07},
      year = {2018},
      abstract = {In this study, we simulate a hybrid renewable energy  system with battery storage to power the Alberta grid, to  meet the province s goal of phasing out coal-fired power  plants by 2030. In doing so, we study the optimal  generation mix based on wind, solar, and load data, and we  consider the so-called missing money problem in determining  how Alberta will be able to facilitate a shift away from  fossil fuels sustainably. We find that high carbon tax  rates allow for higher levels of wind integration and  introduce battery storage into the model, while solar  energy remains economically infeasible. This allows the  grid to depart from using combined-cycle gas plants to meet  base load, though we find that combustion gas turbines are  still necessary to act as peakers. One of economic  consequence of this situation is that missing money problem  is exacerbated, and then a compensation mechanism like the  capacity market is necessary for the sake of electricity  source adequacy and reliability. Despite this, renewable  capacity factors in Alberta are potentially high, and as  costs decline in the future, renewable energy will play a  key role in meeting energy demand. 

Acknowledgement : },
      url = {http://ageconsearch.umn.edu/record/277525},
      doi = {https://doi.org/10.22004/ag.econ.277525},
}