After the restructuring, RWE will own even larger shares
of conventional generation in Germany, which gives this company more market power and political weight when discussing the future of energy production in Germany
This follows on the release of a new paper by three scientists from the U.S. Department of Energy's National Renewable Energy Laboratory (NREL) which explores the issue of minimum requirements for
conventional generation in California and Texas and how this causes curtailment of renewable energy.
As LCOE values for alternative energy technologies continue to decline, in some scenarios the full - lifecycle costs of building and operating renewables - based projects have dropped below the operating costs alone of
conventional generation technologies such as coal or nuclear.
Just following up on the notion of «grid democratization», in the recent IEA report there is an assessment of ownership of
conventional generation capacity (fossil fuels, hydro, nuclear) as compared to ownership of new renewables (page 95):
STT is happy to go all out and say that in Australia wind power requires 100 % of its capacity to be backed up 100 % of the time
by conventional generation sources.
«It's important to forecast how much renewable power will be generated, because that tells us how
much conventional generation capacity — whether nuclear, gas, or coal — needs to be brought online.
This means it covers the direct cost of low - carbon subsidies, energy efficiency and carbon taxes, as well as indirect costs due to strengthening grids, backing up intermittent renewables,
compensating conventional generation for lost revenue through the capacity market and savings due to the merit - order effect, which pushes down wholesale electricity prices.
Sure enough the owners of
conventional generation plant are regularly engaged in power price gouging, whenever wind power output collapses, a point picked up in this piece.
Though Berberich stressed that the ISO is building all the capabilities necessary to smooth the addition of variable renewables, it was clear the supply of
conventional generation looms large for him.
The key point I would like to draw readers attention to, is that
unlike conventional generation, the higher the penetration of renewables the more expensive the solution (because the intermittency is then a bigger problem and so requires a more costly solution).
«Ratepayers and taxpayers will be forced to squander billions of dollars on unnecessary and unreliable energy infrastructure that will still
require conventional generation to keep the grid going, and that won't put a dent in climate change,» O'Neil said.
Increased electric system flexibility, needed to enable electricity supply and demand balance with high levels of renewable generation, can come from a portfolio of supply - and demand - side options, including
flexible conventional generation, grid storage, new transmission, more responsive loads, and changes in power system operations.
With approximately 250,000 industrial wind turbines installed worldwide today, CO2 emissions have NOT been significantly reduced, nor has a
single conventional generation plant been decommissioned anywhere thanks to industrial wind.
«Together, international energy trade and strategic siting can enable African countries to pursue «no - regrets» wind and solar that can compete with
conventional generation technologies like coal and hydropower,» Wu said.
This is an auction - based market in
which conventional generation, along with interconnection, storage and demand response, bid to provide guaranteed capacity over the winter period.
In our opinion, it is less important how RWE proceeds with the generation business since this business model is focused
on conventional generation which does not offer any solutions for the overall challenges from climate change.
«One of the things we're looking at is basically to make sure that the services provided
by conventional generation assets are valued in the market.»
UBS says the central European market is in rapid decline because of falling demand, the construction of too
much conventional generation capacity, and a low Co2 price.
For example, the researchers found that in a high - wind scenario in the Southern Africa Power Pool, strategic siting and grid interconnections would reduce the need for
conventional generation capacity by 9.5 percent, resulting in cost savings of 6 to 20 percent, depending on the technology that was avoided.
It can be very misleading to compare the energy costs for wind and solar to the energy costs for
more conventional generation technology and assume the difference is the cost of providing for «clean» energy.
This, according to Mena - Carrasco, levels the field between renewables and
conventional generation in terms of operational costs.
As these variable renewable energy (VRE) technologies differ
from conventional generation technologies, power systems will need to adapt in line with their ongoing build - out.
We expect that as our nation moves towards the recognition that there should be a price placed on carbon, wind energy will become even more competitive with
conventional generation sources.»
A recent Deutsche Bank report titled «Crossing the Chasm,» predicts that nearly 10 per cent of global electricity production will come from solar over the next 20 years as costs fall steadily to compete
with conventional generation.
A widely - used yearly benchmarking study — the Levelized Cost of Energy Analysis (LCOE) from the financial firm Lazard Ltd. — reached this stunning conclusion: In many regions «the full - lifecycle costs of building and operating renewables - based projects have dropped below the operating costs alone
of conventional generation technologies such as coal or nuclear.»
Despite the modestly slowing rate of cost declines for utility - scale alternative energy generation, the gap between the costs of certain alternative energy technologies (e.g., utility - scale solar and onshore wind) and
conventional generation technologies continues to widen as the cost profiles of such conventional generation remain flat (e.g., coal) and, in certain instances, increase (e.g., nuclear).
This could not only replace
some conventional generation but could «provide a more flexible generation mix» that would «result in greater use of non-dispatchable solar PV and wind.»
Renewables do not provide the ancillary services such as voltage and frequency stabilisation that comes with
conventional generation.