2017
DOI: 10.1016/j.enpol.2017.09.018
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Non-renewable and intermittent renewable energy sources: Friends and foes?

Abstract: This paper studies the links between non-renewable and intermittent renewable energy sources in the production of electricity. We argue that the relationship between the price of natural gas and investments in solar and wind capacity is represented by a bell-shaped curve, as opposed to being linear. Hence, for relatively low natural gas prices, the two modes of production are substitutes. After a price threshold is reached, the two are complementary. A theoretical model explains this as the trade-o↵ resulting … Show more

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Cited by 41 publications
(26 citation statements)
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“…The shale gas scenarios indicate that if shale gas is abundant at low cost it can play a significant role in South Africa's energy future, thereby confirming for South Africa what has previously been found for other countries (Jacoby et al, 2012;Baranes et al, 2017). However, we find that for shale gas to have a large impact, variable extraction costs have to lie well below 3 USD/GJ.…”
Section: Discussionsupporting
confidence: 85%
“…The shale gas scenarios indicate that if shale gas is abundant at low cost it can play a significant role in South Africa's energy future, thereby confirming for South Africa what has previously been found for other countries (Jacoby et al, 2012;Baranes et al, 2017). However, we find that for shale gas to have a large impact, variable extraction costs have to lie well below 3 USD/GJ.…”
Section: Discussionsupporting
confidence: 85%
“…2 Dorsey-Palmateer (2014) finds evidence using data from Texas that increased wind generation shifts the fossil fuel generation mix toward natural gas generation, presumably to handle the intermittency of wind generation. Similarly, Baranes, Jacqmin, and Poudou (2015) finds evidence of complementarity in investment decisions that are attributed to intermittency considerations. 3 For example, the change in average capacity factor for operating plants in Figure 3, panel C is relatively small.…”
Section: A Datamentioning
confidence: 94%
“…Because, natural gas mixes perfectly with air, it is easy to ignite, provides clean combustion and gives high heat. The thermal efficiency of natural gas engines is higher than that of gasoline engines due to these engines have a higher compression ratio than gasoline engines [28][29][30][31][32][33][34][35]. Unlike gasoline and diesel engines, natural gas-powered internal combustion engines do not require fuel enrichment in cold start, and exhaust emissions are not affected by low temperatures.…”
Section: Figurementioning
confidence: 99%
“…Nowadays, cars with natural gas engines have a range of more than 300 miles with a single filling. Also, natural gas is not a renewable energy source, like other fossil fuels [35][36][37].…”
Section: Figurementioning
confidence: 99%