CEEPR Working Paper 2021-017, November 2021

Dharik S. Mallapragada, Cristian Junge, Cathy Wang, Hannes Pfeifenberger, Paul L. Joskow, and Richard Schmalensee

Future electricity systems with constraints on carbon emissions will rely more on wind and solar generation, with zero marginal cost, than today. In this CEEPR Working Paper, we use capacity expansion modelling of Texas in 2050 to illustrate wholesale price distributions in future energy-only, carbon-constrained grids without price caps under a range of technology/system assumptions.

Read more: https://ceepr.mit.edu/workingpaper/electricity-price-distributions-in-future-renewables-dominant-power-grids-and-policy-implications/