Analysis of electricity prices for power supply toward a social optimum for installed wind and solar power utilization

Energy modeling with an objective function targeting the entire power supply system can determine a mix for high share of variable renewable energy (VRE) electricity in supply. However, actual systems are developed by partial optimization various components system, such as transmission and distribution (PTD) company. This study aims to effective price conditions optimal utilization geographically distributed VRE PTD The analysis method used is model company cost. minimizes cost, which includes costs purchase installation battery storage systems. methodology applied Hokkaido case study. results show that amount utilized depends on prices from thermal generation companies. Increasing requires higher power. shares require increases capacities minimize output fluctuations. Further, difference between key factor A larger necessary increase install High revenues companies cost To reduce costs, additional measures carbon tax, cheaper prices, subsidies may be incentivize costs.