NewEnergyNews: The More Renewables, The More The Price Drops

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  • TODAY AT NewEnergyNews, September 19:

  • ORIGINAL REPORTING: New rate designs are showing the way to a modern grid
  • ORIGINAL REPORTING: In the New South, customer demand is showing utilities the dollars and sense in solar

    Thursday, May 17, 2018

    The More Renewables, The More The Price Drops

    Impacts of High Variable Renewable Energy Futures on Wholesale Electricity Prices, and on Electric-Sector Decision Making

    May 2018 (Lawrence Berkeley National Laboratory)

    “Increasing penetrations of variable renewable energy (VRE) can affect wholesale electricity price patterns and make them meaningfully different from past, traditional price patterns…[V]arious decisions may change with higher shares of VRE…[R]esults from detailed electricity market simulations with capacity expansion and unit commitment models for multiple regions of the U.S. for low and high VRE futures…[show] a general decrease in average annual hourly wholesale energy prices with more VRE penetration, increased price volatility and frequency of very low-priced hours, and changing diurnal price patterns. Ancillary service prices rise substantially and peak net-load hours with high capacity value are shifted increasingly into the evening, particularly for high solar futures…[T]he core set of [qualitative] electricity market prices derived here provides a foundation for later planned quantitative evaluations of these decisions in low and high VRE futures.” click here for more

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