Renewable energy in the equilibrium mix of electricity supply sources

- A method to derive supply curves of renewable resources is proposed.
- The method is territory-specific and produces long-run supply curves.
- It's suitable for resources that need to be harvested such as wind or solar energy.
- A case study of wind energy in Easter Island is presented.
- The use of the method for the evaluation and design of support schemes is shown.

A method to derive the long-run supply curve for a given renewable energy source and technology is proposed. The method accounts for the spatial complexity arising from the distribution of the energy source and the energy transport infrastructure of the territory. The use of the resultant supply curve within the partial equilibrium competitive model for the design and evaluation of renewable energy support schemes and for the determination of optimal supply mixes is illustrated. A case study with the application of the method for wind energy in Rapa Nui (or Easter) Island is presented.