Location, Location, Location: The Variable Value of Renewable Energy and Demand-Side Efficiency Resources

Greenhouse gas mitigation efforts in the electricity sector have emphasized accelerated deployment of energy efficiency (EE) measures and renewable energy (RE) resources. We evaluate renewable energy and energy efficiency technologies across regional power systems in the United States in terms of carbon dioxide emissions displaced, operating costs avoided, and capacity value generated. We use data on hourly emissions and electricity generation, simulated hourly production across thousands of wind and solar sites, wholesale electricity prices, and technology costs. We find that variation in the quantity of emissions displaced by wind, solar, and efficiency resources is significant across regions but limited across resources within a region. Comparing our estimates of emissions-related benefits against technology costs, we document substantial variation in the net cost per ton of CO2 avoided. This variation has not been reflected in the prevailing policy incentives that guide investments in RE and EE resources.