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Variable renewable energy (VRE) or intermittent renewable energy sources (IRES) are
renewable energy Renewable energy is energy that is collected from renewable resources that are naturally replenished on a human timescale. It includes sources such as sunlight, wind, the movement of water, and geothermal heat. Although most renewable energy ...
sources that are not dispatchable due to their fluctuating nature, such as
wind power Wind power or wind energy is mostly the use of wind turbines to generate electricity. Wind power is a popular, sustainable, renewable energy source that has a much smaller impact on the environment than burning fossil fuels. Historically ...
and
solar power Solar power is the conversion of energy from sunlight into electricity, either directly using photovoltaics (PV) or indirectly using concentrated solar power. Photovoltaic cells convert light into an electric current using the photovolta ...
, as opposed to controllable renewable energy sources, such as dammed
hydroelectricity Hydroelectricity, or hydroelectric power, is electricity generated from hydropower (water power). Hydropower supplies one sixth of the world's electricity, almost 4500 TWh in 2020, which is more than all other renewable sources combined an ...
or
biomass Biomass is plant-based material used as a fuel for heat or electricity production. It can be in the form of wood, wood residues, energy crops, agricultural residues, and waste from industry, farms, and households. Some people use the terms bio ...
, or relatively constant sources, such as geothermal power. The use of small amounts of intermittent power has little effect on
grid Grid, The Grid, or GRID may refer to: Common usage * Cattle grid or stock grid, a type of obstacle is used to prevent livestock from crossing the road * Grid reference, used to define a location on a map Arts, entertainment, and media * News ...
operations. Using larger amounts of intermittent power may require upgrades or even a redesign of the grid infrastructure. Options to absorb large shares of variable energy into the grid include using storage, improved interconnection between different variable sources to smooth out supply, using dispatchable energy sources such as hydroelectricity and having overcapacity, so that sufficient energy is produced even when weather is less favourable. More connections between the energy sector and the building, transport and industrial sectors may also help.


Background and terminology

The penetration of intermittent renewables in most power grids is low: global electricity generation in 2021 was 7% wind and 4% solar. However, in 2021 Denmark, Luxembourg and Uruguay generated over 40% of their electricity from wind and solar. Characteristics of variable renewables include their unpredictability, variability, their low running costs and the fact they are constrained to a certain location. These provide a challenge to grid operators, who must make sure supply and demand are matched. Solutions include
energy storage Energy storage is the capture of energy produced at one time for use at a later time to reduce imbalances between energy demand and energy production. A device that stores energy is generally called an accumulator or battery. Energy comes in ...
, demand response, availability of overcapacity and
sector coupling Power-to-X (also P2X and P2Y and P2Z) is a number of electricity conversion, energy storage, and reconversion pathways that use surplus electric power, typically during periods where fluctuating renewable energy generation exceeds load. Power- ...
. Smaller isolated grids may be less tolerant to high levels of penetration. Matching power demand to supply is not a problem specific to intermittent power sources. Existing power grids already contain elements of uncertainty including sudden and large changes in demand and unforeseen power plant failures. Though power grids are already designed to have some capacity in excess of projected peak demand to deal with these problems, significant upgrades may be required to accommodate large amounts of intermittent power. Several key terms are useful for understanding the issue of intermittent power sources. These terms are not standardized, and variations may be used. Most of these terms also apply to traditional power plants. * Intermittency or variability is the extent to which a power source fluctuates. This has two aspects: a predictable variability (such as the day-night cycle) and an unpredictable part (imperfect local weather forecasting). The term ''intermittent'' can be used to refer to the unpredictable part, with ''variable'' then referring to the predictable part. * Dispatchability is the ability of a given power source to increase and decrease output quickly on demand. The concept is distinct from intermittency; dispatchability is one of several ways system operators match supply (generator's output) to system demand (technical loads). * Penetration is the amount of electricity generated as a percentage of annual consumption.International Energy Agency Wind Task Force, "Design and Operation of Power Systems with Large Amounts of Wind Power"
Oklahoma Conference Presentation, October 2006
* Nominal power or
nameplate capacity Nameplate capacity, also known as the rated capacity, nominal capacity, installed capacity, or maximum effect, is the intended full-load sustained output of a facility such as a power station,
is the maximum output of a generating plant in normal operating conditions. This is the most common number used and is typically expressed in watts (including multiples like kW, MW, GW). *
Capacity factor The net capacity factor is the unitless ratio of actual electrical energy output over a given period of time to the theoretical maximum electrical energy output over that period. The theoretical maximum energy output of a given installation is def ...
, average capacity factor, or load factor is the average expected output of a generator, usually over an annual period. It is expressed as a percentage of the nameplate capacity or in decimal form (e.g. 30% or 0.30). * Firm capacity or
firm power Firm services, also called uninterruptible services, are services, such as electricity (firm power) and natural gas supplies, that are intended to be available at all times during a period covered by an agreement. Also, the service is not subject to ...
is "guaranteed by the supplier to be available at all times during a period covered by a commitment". * Capacity credit: the amount of conventional (dispatchable) generation power that can be potentially removed from the system while keeping the reliability, usually expressed as a percentage of the nominal power. * Foreseeability or predictability is how accurately the operator can anticipate the generation: for example
tidal power Tidal power or tidal energy is harnessed by converting energy from tides into useful forms of power, mainly electricity using various methods. Although not yet widely used, tidal energy has the potential for future electricity generation. Ti ...
varies with the tides but is completely foreseeable because the orbit of the moon can be predicted exactly, and improved weather forecasts can make wind power more predictable.


Sources

Dammed hydroelectricity, biomass and geothermal are dispatchable as each has a store of potential energy; wind and solar without storage can be decreased, but not dispatched, other than when nature provides. Between wind and solar, solar has a more variable daily cycle than wind, but is more predictable in daylight hours than wind. Like solar, tidal energy varies between on and off cycles through each day, unlike solar there is no intermittency, tides are available every day without fail.


Wind power

Grid operators use day ahead forecasting to determine which of the available power sources to use the next day, and weather forecasting is used to predict the likely wind power and solar power output available. Although wind power forecasts have been used operationally for decades, the IEA is organizing international collaboration to further improve their accuracy. Wind-generated power is a variable resource, and the amount of electricity produced at any given point in time by a given plant will depend on wind speeds, air density, and turbine characteristics (among other factors). If wind speed is too low then the wind turbines will not be able to make electricity, and if it is too high the turbines will have to be shut down to avoid damage. While the output from a single turbine can vary greatly and rapidly as local wind speeds vary, as more turbines are connected over larger and larger areas the average power output becomes less variable. * Intermittence: Regions smaller than
synoptic scale The synoptic scale in meteorology (also known as large scale or cyclonic scale) is a horizontal length scale of the order of 1000 kilometers (about 620 miles) or more. This corresponds to a horizontal scale typical of mid-latitude depressions (e. ...
(less than about 1000 km long, the size of an average country) have mostly the same weather and thus around the same wind power, unless local conditions favor special winds. Some studies show that wind farms spread over a geographically diverse area will as a whole rarely stop producing power altogether. However this is rarely the case for smaller areas with uniform geography such as Ireland, Scotland and Denmark which have several days per year with little wind power. * Capacity factor: Wind power typically has an annual capacity factor of 25–50%, with offshore wind outperforming onshore wind. * Dispatchability: Because wind power is not by itself dispatchable wind farms are sometimes built with storage. * Capacity credit: At low levels of penetration, the capacity credit of wind is about the same as the capacity factor. As the concentration of wind power on the grid rises, the capacity credit percentage drops. * Variability: Site dependent. Sea breezes are much more constant than land breezes. Seasonal variability may reduce output by 50%. *
Reliability Reliability, reliable, or unreliable may refer to: Science, technology, and mathematics Computing * Data reliability (disambiguation), a property of some disk arrays in computer storage * High availability * Reliability (computer networking), a ...
: A wind farm has high technical reliability when the wind blows. That is, the output at any given time will only vary gradually due to falling wind speeds or storms (the latter necessitating shut downs). A typical wind farm is unlikely to have to shut down in less than half an hour at the extreme, whereas an equivalent-sized power station can fail totally instantaneously and without warning. The total shutdown of wind turbines is predictable via weather forecasting. The average availability of a wind turbine is 98%, and when a turbine fails or is shut down for maintenance it only affects a small percentage of the output of a large wind farm. * Predictability: Although wind is variable, it is also predictable in the short term. There is an 80% chance that wind output will change less than 10% in an hour and a 40% chance that it will change 10% or more in 5 hours. Because wind power is generated by large numbers of small generators, individual failures do not have large impacts on power grids. This feature of wind has been referred to as resiliency.


Solar power

Intermittency inherently affects solar energy, as the production of renewable electricity from solar sources depends on the amount of sunlight at a given place and time. Solar output varies throughout the day and through the seasons, and is affected by dust, fog, cloud cover, frost or snow. Many of the seasonal factors are fairly predictable, and some solar thermal systems make use of heat storage to produce grid power for a full day. * Variability: In the absence of an
energy storage system Energy storage is the capture of energy produced at one time for use at a later time to reduce imbalances between energy demand and energy production. A device that stores energy is generally called an accumulator or battery. Energy comes in ...
, solar does not produce power at night, little in bad weather and varies between seasons. In many countries, solar produces most energy in seasons with low wind availability and vice versa. * Capacity factor Standard photovoltaic solar has an annual average capacity factor of 10-20%, but panels that move and track the sun have a capacity factor up to 30%. Thermal solar parabolic trough with storage 56%. Thermal solar power tower with storage 73%. The impact of intermittency of solar-generated electricity will depend on the correlation of generation with demand. For example, solar thermal power plants such as
Nevada Solar One Nevada Solar One is a concentrated solar power plant, with a nominal capacity of 64 Watt, MW and maximum steam turbine power output up to 72 MW net (75 MW gross), spread over an area of . The projected Carbon dioxide, CO2 emissions ...
are somewhat matched to summer peak loads in areas with significant cooling demands, such as the south-western United States. Thermal energy storage systems like the small Spanish Gemasolar Thermosolar Plant can improve the match between solar supply and local consumption. The improved capacity factor using thermal storage represents a decrease in maximum capacity, and extends the total time the system generates power.


Run-of-the-river hydroelectricity

In many countries new large dams are no longer being built, because of the
environmental impact of reservoirs The environmental impact of reservoirs comes under ever-increasing scrutiny as the global demand for water and energy increases and the number and size of reservoirs increases. Dams and reservoirs can be used to supply drinking water, generate h ...
. Run of the river projects have continued to be built. The absence of a reservoir results in both seasonal and annual variations in electricity generated.


Tidal power

Tidal power Tidal power or tidal energy is harnessed by converting energy from tides into useful forms of power, mainly electricity using various methods. Although not yet widely used, tidal energy has the potential for future electricity generation. Ti ...
is the most predictable of all the variable renewable energy sources. The tides reverse twice a day, but they are never intermittent, on the contrary they are completely reliable. Only 20 sites in the world have yet been identified as possible tidal power stations.


Wave power

Waves are primarily created by wind, so the power available from waves tends to follow that available from wind, but due to the mass of the water is less variable than wind power. Wind power is proportional to the cube of the wind speed, while wave power is proportional to the square of the wave height.


Solutions for their integration

The displaced dispatchable generation could be coal, natural gas, biomass, nuclear, geothermal or storage hydro. Rather than starting and stopping nuclear or geothermal it is cheaper to use them as constant
base load The base load (also baseload) is the minimum level of demand on an electrical grid over a span of time, for example, one week. This demand can be met by unvarying power plants, dispatchable generation, or by a collection of smaller intermittent e ...
power. Any power generated in excess of demand can displace heating fuels, be converted to storage or sold to another grid. Biofuels and conventional hydro can be saved for later when intermittents are not generating power. Some forecast that “near-firm” renewables (batteries with solar and/or wind) power will be cheaper than existing nuclear by the late 2020s: therefore they say base load power will not be needed. Alternatives to burning coal and natural gas which produce fewer greenhouse gases may eventually make fossil fuels a
stranded asset Stranded assets are "assets that have suffered from unanticipated or premature write-downs, devaluations or conversion to liabilities". Stranded assets can be caused by a variety of factors and are a phenomenon inherent in the 'creative destructi ...
that is left in the ground. Highly integrated grids favor flexibility and performance over cost, resulting in more plants that operate for fewer hours and lower
capacity factor The net capacity factor is the unitless ratio of actual electrical energy output over a given period of time to the theoretical maximum electrical energy output over that period. The theoretical maximum energy output of a given installation is def ...
s. All sources of electrical power have some degree of variability, as do demand patterns which routinely drive large swings in the amount of electricity that suppliers feed into the grid. Wherever possible, grid operations procedure are designed to match supply with demand at high levels of reliability, and the tools to influence supply and demand are well-developed. The introduction of large amounts of highly variable power generation may require changes to existing procedures and additional investments. The capacity of a reliable renewable power supply, can be fulfilled by the use of backup or extra infrastructure and technology, using mixed renewables to produce electricity above the intermittent average, which may be used to meet regular and unanticipated supply demands. Additionally, the storage of energy to fill the shortfall intermittency or for emergencies can be part of a reliable power supply. In practice, as the power output from wind varies, partially loaded conventional plants, which are already present to provide response and reserve, adjust their output to compensate. While low penetrations of intermittent power may use existing levels of response and spinning reserve, the larger overall variations at higher penetrations levels will require additional reserves or other means of compensation.


Operational reserve

All managed grids already have existing operational and "spinning" reserve to compensate for existing uncertainties in the power grid. The addition of intermittent resources such as wind does not require 100% "back-up" because operating reserves and balancing requirements are calculated on a system-wide basis, and not dedicated to a specific generating plant. Some gas, or hydro power plants are partially loaded and then controlled to change as demand changes or to replace rapidly lost generation. The ability to change as demand changes is termed "response". The ability to quickly replace lost generation, typically within timescales of 30 seconds to 30 minutes, is termed "spinning reserve". Generally thermal plants running as peaking plants will be less efficient than if they were running as
base load The base load (also baseload) is the minimum level of demand on an electrical grid over a span of time, for example, one week. This demand can be met by unvarying power plants, dispatchable generation, or by a collection of smaller intermittent e ...
. Hydroelectric facilities with storage capacity (such as the traditional dam configuration) may be operated as base load or peaking plants. Grids can contract for grid battery plants, which provide immediately available power for an hour or so, which gives time for other generators to be started up in the event of a failure, and greatly reduces the amount of spinning reserve required.


Demand response

Demand response is a change in consumption of energy to better align with supply. It can take the form of switching off loads, or absorb additional energy to correct supply/demand imbalances. Incentives have been widely created in the American, British and French systems for the use of these systems, such as favorable rates or capital cost assistance, encouraging consumers with large loads to take them offline whenever there is a shortage of capacity, or conversely to increase load when there is a surplus. Certain types of load control allow the power company to turn loads off remotely if insufficient power is available. In France large users such as CERN cut power usage as required by the System Operator - EDF under the encouragement of the EJP tariff.
Energy demand management Energy demand management, also known as demand-side management (DSM) or demand-side response (DSR), is the modification of consumer demand for energy through various methods such as financial incentives and behavioral change through education. Us ...
refers to incentives to adjust use of electricity, such as higher rates during peak hours. Real-time variable electricity pricing can encourage users to adjust usage to take advantage of periods when power is cheaply available and avoid periods when it is more scarce and expensive. Some loads such as desalination plants, electric boilers and industrial refrigeration units, are able to store their output (water and heat). Several papers also concluded that Bitcoin mining loads would reduce curtailment,
hedge A hedge or hedgerow is a line of closely spaced shrubs and sometimes trees, planted and trained to form a barrier or to mark the boundary of an area, such as between neighbouring properties. Hedges that are used to separate a road from adjoin ...
electricity price risk, stabilize the grid, increase the profitability of renewable energy power stations and therefore accelerate transition to sustainable energy. But others argue that Bitcoin mining can never be sustainable. Instantaneous demand reduction. Most large systems also have a category of loads which instantly disconnect when there is a generation shortage, under some mutually beneficial contract. This can give instant load reductions (or increases).


Storage

At times of low load where non-dispatchable output from wind and solar may be high, grid stability requires lowering the output of various dispatchable generating sources or even increasing controllable loads, possibly by using energy storage to time-shift output to times of higher demand. Such mechanisms can include: Pumped storage hydropower is the most prevalent existing technology used, and can substantially improve the economics of wind power. The availability of hydropower sites suitable for storage will vary from grid to grid. Typical round trip efficiency is 80%. Traditional lithium-ion is the most common type used for grid-scale battery storage . Rechargeable
flow batteries A flow battery, or redox flow battery (after reduction–oxidation), is a type of electrochemical cell where chemical energy is provided by two chemical components Solution (chemistry), dissolved in liquids that are pumped through the system on ...
can serve as a large capacity, rapid-response storage medium.
Hydrogen Hydrogen is the chemical element with the symbol H and atomic number 1. Hydrogen is the lightest element. At standard conditions hydrogen is a gas of diatomic molecules having the formula . It is colorless, odorless, tasteless, non-toxic ...
can be created through electrolysis and stored for later use. Flywheel energy storage systems have some advantages over chemical batteries. Along with substantial durability which allows them to be cycled frequently without noticeable life reduction, they also have very fast response and ramp rates. They can go from full discharge to full charge within a few seconds. They can be manufactured using non-toxic and environmentally friendly materials, easily recyclable once the service life is over.
Thermal energy storage Thermal energy storage (TES) is achieved with widely different technologies. Depending on the specific technology, it allows excess thermal energy to be stored and used hours, days, months later, at scales ranging from the individual process, ...
stores heat. Stored heat can be used directly for heating needs or converted into electricity. In the context of a CHP plant a heat storage can serve as a functional electricity storage at comparably low costs.
Ice storage air conditioning Ice storage air conditioning is the process of using ice for thermal energy storage. The process can reduce energy used for cooling during times of peak electrical demand. Alternative power sources such as solar can also use the technology to s ...
Ice can be stored inter seasonally and can be used as a source of air-conditioning during periods of high demand. Present systems only need to store ice for a few hours but are well developed. Storage of electrical energy results in some lost energy because storage and retrieval are not perfectly efficient. Storage also requires capital investment and space for storage facilities.


Geographic diversity and complementing technologies

The variability of production from a single wind turbine can be high. Combining any additional number of turbines (for example, in a wind farm) results in lower statistical variation, as long as the correlation between the output of each turbine is imperfect, and the correlations are always imperfect due to the distance between each turbine. Similarly, geographically distant wind turbines or wind farms have lower correlations, reducing overall variability. Since wind power is dependent on weather systems, there is a limit to the benefit of this geographic diversity for any power system. Multiple wind farms spread over a wide geographic area and gridded together produce power more constantly and with less variability than smaller installations. Wind output can be predicted with some degree of confidence using weather forecasts, especially from large numbers of turbines/farms. The ability to predict wind output is expected to increase over time as data is collected, especially from newer facilities. Electricity produced from solar energy tends to counterbalance the fluctuating supplies generated from wind. Normally it is windiest at night and during cloudy or stormy weather, and there is more sunshine on clear days with less wind. Besides, wind energy has often a peak in the winter season, whereas solar energy has a peak in the summer season; the combination of wind and solar reduces the need for dispatchable backup power. * In some locations, electricity demand may have a high correlation with wind output, particularly in locations where cold temperatures drive electric consumption (as cold air is denser and carries more energy). * The allowable penetration may be increased with further investment in standby generation. For instance some days could produce 80% intermittent wind and on the many windless days substitute 80% dispatchable power like natural gas, biomass and Hydro. * Areas with existing high levels of hydroelectric generation may ramp up or down to incorporate substantial amounts of wind.
Norway Norway, officially the Kingdom of Norway, is a Nordic country in Northern Europe, the mainland territory of which comprises the western and northernmost portion of the Scandinavian Peninsula. The remote Arctic island of Jan Mayen and the ...
,
Brazil Brazil ( pt, Brasil; ), officially the Federative Republic of Brazil (Portuguese: ), is the largest country in both South America and Latin America. At and with over 217 million people, Brazil is the world's fifth-largest country by area ...
, and
Manitoba , image_map = Manitoba in Canada 2.svg , map_alt = Map showing Manitoba's location in the centre of Southern Canada , Label_map = yes , coordinates = , capital = Winn ...
all have high levels of hydroelectric generation, Quebec produces over 90% of its electricity from hydropower, and Hydro-Québec is the largest hydropower producer in the world. The U.S. Pacific Northwest has been identified as another region where wind energy is complemented well by existing hydropower. Storage capacity in hydropower facilities will be limited by size of reservoir, and environmental and other considerations.


Connecting grid internationally

It is often feasible to export energy to neighboring grids at times of surplus, and import energy when needed. This practice is common in Europe and between the US and Canada. Integration with other grids can lower the effective concentration of variable power: for instance, Denmark's high penetration of VRE, in the context of the German/Dutch/ Scandinavian grids with which it has interconnections, is considerably lower as a proportion of the total system. Hydroelectricity that compensates for variability can be used across countries. The capacity of power transmission infrastructure may have to be substantially upgraded to support export/import plans. Some energy is lost in transmission. The economic value of exporting variable power depends in part on the ability of the exporting grid to provide the importing grid with useful power at useful times for an attractive price.


Sector coupling

Demand and generation can be better matched when sectors such as mobility, heat and gas are coupled with the power system. The electric vehicle market is for instance expected to become the largest source of storage capacity. This may be a more expensive option appropriate for high penetration of variable renewables, compared to other sources of flexibility. The International Energy Agency says that sector coupling is needed to compensate for the mismatch between seasonal demand and supply. Electric vehicles can be charged during periods of low demand and high production, and in some places send power back from the
vehicle-to-grid Vehicle-to-grid (V2G), also known as Vehicle-to-home (V2H) or Vehicle-to-load (V2L) describes a system in which plug-in electric vehicles (PEV) sell demand response services to the grid. Demand services are either delivering electricity or by red ...
.


Penetration

Penetration refers to the proportion of a
primary energy Primary energy (PE) is an energy form found in nature that has not been subjected to any human engineered conversion process. It is energy contained in raw fuels, and other forms of energy, including waste, received as input to a system. Prim ...
(PE) source in an electric power system, expressed as a percentage. There are several methods of calculation yielding different penetrations. The penetration can be calculated either as: # the nominal capacity (installed power) of a PE source divided by the peak load within an electric power system; or # the nominal capacity (installed power) of a PE source divided by the total capacity of the electric power system; or # the electrical energy generated by a PE source in a given period, divided by the demand of the electric power system in this period. The level of penetration of intermittent variable sources is significant for the following reasons: * Power grids with significant amounts of dispatchable pumped storage,
hydropower Hydropower (from el, ὕδωρ, "water"), also known as water power, is the use of falling or fast-running water to produce electricity or to power machines. This is achieved by converting the gravitational potential or kinetic energy of a w ...
with
reservoir A reservoir (; from French ''réservoir'' ) is an enlarged lake behind a dam. Such a dam may be either artificial, built to store fresh water or it may be a natural formation. Reservoirs can be created in a number of ways, including contro ...
or
pondage Pondage usually refers to the comparably small water storage behind the weir of a run-of-the-river hydroelectric power plant. Such a power plant has considerably less storage than the reservoirs of large dams and conventional hydroelectric stations ...
or other peaking power plants such as natural gas-fired power plants are capable of accommodating fluctuations from intermittent power more easily. * Relatively small electric power systems without strong interconnection (such as remote islands) may retain some existing diesel generators but consuming less fuel, for flexibility until cleaner energy sources or storage such as pumped hydro or batteries become cost-effective. In the early 2020s wind and solar produce 10% of the world's electricity, but supply in the 40-55% penetration range has already been implemented in several systems, with over 65% planned for the UK by 2030. There is no generally accepted maximum level of penetration, as each system's capacity to compensate for intermittency differs, and the systems themselves will change over time. Discussion of acceptable or unacceptable penetration figures should be treated and used with caution, as the relevance or significance will be highly dependent on local factors, grid structure and management, and existing generation capacity. For most systems worldwide, existing penetration levels are significantly lower than practical or theoretical maximums.


Maximum penetration limits

Maximum penetration of combined wind and solar is estimated at around 70% to 90% without regional aggregation, demand management or storage; and up to 94% with 12 hours of storage. Economic efficiency and cost considerations are more likely to dominate as critical factors; technical solutions may allow higher penetration levels to be considered in future, particularly if cost considerations are secondary.


Economic impacts of variability

Estimates of the cost of wind and solar energy may include estimates of the "external" costs of wind and solar variability, or be limited to the cost of production. All electrical plant has costs that are separate from the cost of production, including, for example, the cost of any necessary transmission capacity or reserve capacity in case of loss of generating capacity. Many types of generation, particularly fossil fuel derived, will also have cost
externalities In economics, an externality or external cost is an indirect cost or benefit to an uninvolved third party that arises as an effect of another party's (or parties') activity. Externalities can be considered as unpriced goods involved in either co ...
such as pollution,
greenhouse gas emission Greenhouse gas emissions from human activities strengthen the greenhouse effect, contributing to climate change. Most is carbon dioxide from burning fossil fuels: coal, oil, and natural gas. The largest emitters include coal in China and ...
, and habitat destruction which are generally not directly accounted for. The magnitude of the economic impacts is debated and will vary by location, but is expected to rise with higher penetration levels. At low penetration levels, costs such as operating reserve and balancing costs are believed to be insignificant. Intermittency may introduce additional costs that are distinct from or of a different magnitude than for traditional generation types. These may include: * Transmission capacity: transmission capacity may be more expensive than for nuclear and coal generating capacity due to lower load factors. Transmission capacity will generally be sized to projected peak output, but average capacity for wind will be significantly lower, raising cost per unit of energy actually transmitted. However transmission costs are a low fraction of total energy costs. * Additional operating reserve: if additional wind and solar does not correspond to demand patterns, additional operating reserve may be required compared to other generating types, however this does not result in higher capital costs for additional plants since this is merely existing plants running at low output - spinning reserve. Contrary to statements that all wind must be backed by an equal amount of "back-up capacity", intermittent generators contribute to base capacity "as long as there is some probability of output during peak periods". Back-up capacity is not attributed to individual generators, as back-up or operating reserve "only have meaning at the system level". * Balancing costs: to maintain grid stability, some additional costs may be incurred for balancing of load with demand. Although improvements to grid balancing can be costly, they can lead to long term savings. In many countries for many types of variable renewable energy, from time to time the government invites companies to tender sealed bids to construct a certain capacity of solar power to connect to certain electricity substations. By accepting the lowest bid the government commits to buy at that price per kWh for a fixed number of years, or up to a certain total amount of power. This provides certainty for investors against highly volatile wholesale electricity prices. However they may still risk exchange rate volatility if they borrowed in foreign currency.


Regulation and grid planning


Britain

The operator of the British electricity system has said that it will be capable of operating
zero-carbon Carbon neutrality is a state of net-zero carbon dioxide emissions. This can be achieved by balancing emissions of carbon dioxide with its removal (often through carbon offsetting) or by eliminating emissions from society (the transition to the "p ...
by 2025, whenever there is enough renewable generation, and may be carbon negative by 2033. The company, National Grid Electricity System Operator, states that new products and services will help reduce the overall cost of operating the system.


See also

*
Energy security and renewable technology The environmental benefits of renewable energy technologies are widely recognised, but the contribution that they can make to energy security is less well known. Renewable technologies can enhance energy security in electricity generation, heat supp ...
*
Ground source heat pump A ground source heat pump (also geothermal heat pump) is a heating/cooling system for buildings that uses a type of heat pump to transfer heat to or from the ground, taking advantage of the relative constancy of temperatures of the earth through ...
*
Cost of electricity by source Different methods of electricity generation can incur a variety of different costs, which can be divided into three general categories: 1) wholesale costs, or all costs paid by utilities associated with acquiring and distributing electricity to ...
*
Spark spread The spark spread is the theoretical gross margin of a gas-fired power plant from selling a unit of electricity, having bought the fuel required to produce this unit of electricity. All other costs (operation and maintenance, capital and other financ ...
: calculating the cost of back up *
List of energy storage power plants This is a list of energy storage power plants worldwide, other than pumped hydro storage. Many individual energy storage plants augment electrical grids by capturing excess electrical energy during periods of low demand and storing it in oth ...


Further reading

*


References


External links


Grid Integration of Wind Energy
{{Electricity generation Electric power distribution Energy storage Renewable energy