Dramatic reductions in the cost of wind and solar have led to optimism that they can be primary contributors to low-carbon electricity grids. But there’s an important obstacle to their profitability: revenue decline. Adding wind and solar to the grid tends to reduce electricity prices during the times that they generate. On a sunny afternoon in California, solar generation can reach such high levels that it brings the price of electricity down to zero. This wasn’t a problem when the first few solar plants were built, but it means that the value of new solar is lower than it used to be because it will generate during periods when the price of electricity is already low. Declining revenue isn’t a new concept, and there are several important trends that are already working to slow it down: storage, demand response and increasing interconnection.
GTM 15th May 2020 read more »
According to the latest data released by the US government’s Energy Information Administration (EIA), the pairing of renewable energy generators with energy storage, particularly batteries, is increasingly common as the cost of energy storage continues to decrease. Its latest inventory shows that the number of solar and wind generation sites co-located with batteries has grown from 19 paired sites in 2016 to 53 paired sites in 2019. And the EIA says this trend is expected to continue, with another 56 facilities pairing renewable energy and battery storage to come online by the end of 2023. This is not surprising. Battery storage costs have fallen to a point so low that they are pushing peaking gas generators out of the market – and in a market where the price of gas is supposedly cheap.
Renew Economy 19th May2020 read more »