2022/05/03 by Javier López Prol, Karl W. Steininger, Prol, Javier López +7
Energy · Engineering · #Electric Power System Optimization #FOS: Economics and business #General Economics (econ.GN) #Global Energy Security and Policy #ICT Impact and Policies
paper · pdf · doi:10.48550/arxiv.2205.01436
openalex publication_date 2022/05/03 · openalex created_date 2025/10/10 · openalex updated_date 2026/07/28
Electrification of all economic sectors and solar photovoltaics (PV) becoming the lowest-cost electricity generation technology in ever more regions give rise to new potential gains of trade. We develop a stylized analytical model to minimize unit energy cost in autarky, open it to different trade configurations, and evaluate it empirically. We identify large potential gains from interhemispheric and global electricity trade by combining complementary seasonal and diurnal cycles. The corresponding high willingness to pay for large-scale transmission suggests far-reaching political economy and regulatory implications.