Research
Working Paper
- An Empirical Analysis of the Interconnection Queue (with Sarah Johnston and Chenyu Yang) [NBER Working Paper]
Abstract
Generators applying to connect to the U.S. power grid go through an interconnection queue. Most wind and solar generators that begin the process do not complete it. Using new data, we find that a long queue increases the average waiting time, and high interconnection costs are a key factor in a generator’s decision to withdraw. We develop and estimate a dynamic model of the queue and quantify the effects of policy reforms. Our simulations indicate that reducing waiting times can significantly increase completions. An alternative queuing mechanism can therefore increase completed capacity by removing certain generators to reduce congestion. A flat entry fee has a similar effect. We also quantify the effects of reforming how interconnection costs are assessed. These policy reforms lead to a substantial reduction in carbon emissions.
Selected Work in Progress
- Market Structure and Transmission Investments in U.S. Electricity Markets
Abstract
Efforts to advance the green transition and decarbonize the electricity sector require strong support from electricity transmission infrastructure. This paper evaluates the impact of a specific market design, known as market dispatch, on transmission infrastructure investment. Traditionally, electricity within a specific region was supplied by a single, regulated utility company. However, in the late 1990s, many regions in the United States began to shift towards a market dispatch system, where electricity generation is supplied by multiple utility companies and each company's quantity is determined by an auction. Despite this change, the transmission operations of these companies continued to be regulated based on a cost-of-service basis. I use a dynamic difference-in-differences design, taking advantage of the staggered roll-out of market dispatch. The findings suggest that the adoption of this system leads to increases in transmission investment by the utilities, nearly doubling the investment levels at the mean. However, there is no robust evidence to suggest that these utilities spend more on high-voltage transmission infrastructures, which are considered pivotal for reducing greenhouse gas emissions.
- Production Network, Wind Penetration and Environmental Impact: The Case of Texas Wholesale Electricity Makret (with Sheldon Du)
Abstract
To achieve the ambitious goal of carbon neutrality, the US government is accelerating the adoption of renewable energy and spends billions subsidizing renewable energy investments every year. However, the majority of these subsidies are production-based and do not consider the locations and interconnections of newly entering renewable generators and existing fossil fuel generators within the electricity grid. Consequently, renewable generators tend to cluster in areas where resources are rich and government incentives are the highest. This clustering could lead to suboptimal transmission congestion and generation curtailment. Productions from renewable generators at different locations may substitute productions from different sets of fossil generators. In this project, we investigate the benefits of emissions reduction from renewable generations after accounting for locational and interconnection effects as well as the changing network structure.
Pre-Doctoral Publication
- Identifying high-priority impact areas for electricity service to farmlands in Uganda through geospatial mapping (with Rebekah Shirley, Josephine Kakande, and Mark Kagarura) Journal of Agriculture and Food Research, 2021
Abstract
This article explores the food-energy nexus in sub–Saharan Africa by studying opportunities for improved agricultural productivity through electricity access. The study fills an acknowledged data gap by using geospatial analysis to identify priority areas where least-cost electricity delivery models intersect with agricultural needs. These findings are validated by community surveys in a key farming district. The analysis finds significant areas of underserved staple and cash crop farmlands can be served through grid and mini-grid electricity access within the next ten years.