To get at the full dynamic gains from trade, one would need to compare these benefits to the costs of building the line and the costs of the solar investment. [...] In the presence of investment delays, the key is to show that price reductions are larger in the dynamic equilibrium than in the static one with no solar investment. [...] We calculate the province-level average node prices and make heat maps for the three time periods: 1) before the interconnection, 2) after the interconnection and before the reinforcement, and 3) after the reinforcement. [...] We show the result of the second approach in this section and include the result of the first approach in the appendix (Table A.4). [...] If this is the case, solar plants were able to receive non-zero prices even during the pre-interconnection period.14 The findings from Figure 6 suggest that incorporating the dynamic impacts of market integration on solar entries can be important part of the value of the transmission expansion.
- Pages
- 63
- Published in
- United States of America