Wholesale electricity market economics of solar generation in Israel

Irena Milstein, Asher Tishler*, Chi Keung Woo

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

8 Scopus citations

Abstract

We use a two-stage model to determine the equilibrium capacities, generation levels, and prices of a wholesale electricity market in which independent power producers (IPPs) use natural gas-fired (NG) and photovoltaic (PV) technologies. PV's effective capacity is high during midday but low in other daytime hours. Applied to Israel's stylized electricity market in 2030, our model finds NG and PV are necessary to meet Israel's electricity demands; NG mitigates daytime price spikes and enhances consumer welfare; NG IPPs are profitable; and PV IPPs may be unprofitable, potentially requiring government support to aid Israel's achievement of a clean and sustainable future.

Original languageEnglish
Article number101443
JournalUtilities Policy
Volume79
DOIs
StatePublished - Dec 2022

Funding

FundersFunder number
Education University of Hong Kong
Faculty of Liberal Arts and Social Sciences, Education University of Hong Kong

    Keywords

    • Decarbonization
    • Equilibrium capacities and prices
    • Israel
    • PV capacity Utilization
    • Wholesale electricity market

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