Abstract
The system integration of intermittent renewable energies (RE) poses an important challenge in the transition toward sustainable energy systems. Their intermittency introduces variability into electricity generation, leading to high ancillary service costs and technical issues impairing grid stability and supply reliability. These issues can be mitigated through spatially diversified capacity deployment, as RE intermittency can be geographically smoothed over sufficiently large regions. Following a design science research approach, we develop a model for the quantification of location-based investment incentives in RE support mechanisms to foster spatially diversified capacity deployment. We evaluate the modeling approach in a simulation study with focus on diversifying wind energy deployment in Mexico under an idealized auction mechanism and demonstrate how location-based investment incentives reduce resource-dependent competition among projects. Our research contributes a nascent design theory that combines the kernel theories for identifying favorable spatial distributions of RE capacity with current policy designs to support capacity expansion management
Acknowledgments
A previous version of this article was published in the Proceedings of the Hawaii International Conference on System Sciences (HICSS) 2017. We are grateful to the guest editors of this Journal of Management Information Systems special issue, Robert O. Briggs, Jay F. Nunamaker Jr., and Justin Scott Giboney as well as the three anonymous reviewers for their valuable and constructive comments and suggestions. We also appreciate the valuable feedback of the participants of the HICSS 2017 track “Addressing Grand Challenges with Information Technology” and especially the chair, Daniel Soper.
Supplemental File
Supplemental data for this article can be found on the publisher’s website at 10.1080/07421222.2017.1394044
Additional information
Notes on contributors
Jan-Hendrik Piel
Jan-Hendrik Piel ([email protected]; corresponding author) is a researcher at the Information Systems Institute, Leibniz Universität Hannover, Germany, and a management assistant at the Leibniz Energy Research Center (LiFE2050). He studied at the Leibniz Universität Hannover and the University of Bristol, United Kingdom, and received his M.Sc. in economics and management from the Leibniz Universität Hannover. He coordinates a research group that focuses on the engineering of decision support systems in the areas of valuation and risk management of renewable energy projects, energy policy design, and energy systems modeling.
Julian F.H. Hamann
Julian F.H. Hamann ([email protected]) is a researcher at the Information Systems Institute, Leibniz Universität Hannover, Germany. He received his M.Sc. in economics and management from the Leibniz Universität Hannover. His research interests include energy systems modeling, energy policy, and energy economics.
André Koukal
André Koukal ([email protected]) is a researcher at the Information Systems Institute, Leibniz Universität Hannover, Germany. He received his Diploma in economics and management from the Leibniz Universität Hannover. He initiated and established the research on decision support systems in the areas of valuation and risk management of renewable energy projects as a major field of interest for the institute. His research interests also include topics related to energy policy design and energy systems modeling.
Michael H. Breitner
Michael H. Breitner ([email protected]) is a full professor of information systems, operations research, finance, and management and chairs the Information Systems Institute at the Leibniz Universität Hannover, Germany. He is chief executive officer (CEO) of the Leibniz Energy Research Center (LiFE2050), CEO of the Hannover Center of Finance e.V. (HCF), vice-CEO of the Energy Research Center Lower Saxony, and CEO of the consulting company North Information Systems, Solutions, and Services GmbH. He received his Ph.D. and Venia Legendi in mathematics from the Technische Universität Clausthal, Germany. He heads several research groups on energy systems modeling, energy finance and risk management, urban logistics and (e-)car sharing optimization, Internet of Things and smart services, big data analytics and visualization, enterprise social networks, mobile business, and FinTech business models.