We consider the energy transition in a tractable model of electricity markets that includes renewables with storage. Storage smooths costs over time and complements the intermittency of renewables. We calibrate our model to data from Uruguay, Brazil, and Argentina, countries with different...

This paper develops a dynamic model of competitive equilibrium in electricity markets with thermal, hydro and intermittent power sources. Thermal generators have positive and increasing costs and use a marketable input. Hydro generators use a free and uncertain input, but one that is storable....