Modeling the effects of photovoltaic technology, battery storage, and electric vehicles on Israel's electricity market from 2030 to 2050

This study assesses the economics of Israel's wholesale electricity market from 2030 to 2050 with rising market penetrations of photovoltaic (PV) technology, battery storage, and electric vehicles. The competing independent power producers (IPPs) employ PV generation cum battery storage (PVB) or natural gas (NG) to meet each day's hourly demands. Using two-stage models to determine the short-run market equilibrium of electricity generation and prices and the long-run market equilibrium mix of PV, NG, and battery capacities, we show that declining battery costs enable PVB IPPs to replace 100 % of the NG IPPs, leading to a carbon-free electricity supply.