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An Overview of Integration Costs of Variable Renewables in the Power Sector

An Overview of Integration Costs of Variable Renewables in the Power Sector

In recent years, the cost of electricity generated by renewables has significantly decreased to the point where it is cost competitive with conventional plants. However, incorporating variable renewable energy (VRE) technologies like wind and solar photovoltaics (PV) into the power system creates intermittency. By adding intermittent sources of generation, demand and supply will not always match.

4th September 2023
An Overview of Integration Costs of Variable Renewables in the Power Sector

An Overview of Integration Costs of Variable Renewables in the Power Sector

In recent years, the cost of electricity generated by renewables has significantly decreased to the point where it is cost competitive with conventional plants. However, incorporating variable renewable energy (VRE) technologies like wind and solar photovoltaics (PV) into the power system creates intermittency. By adding intermittent sources of generation, demand and supply will not always match. This means that the system requires more backup generators and more flexibility to balance the mismatch between supply and demand. Integration costs must be factored in to determine the optimal share of VRE and the total system cost.

19th June 2023

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