Firm Photovoltaic Power Generation: Overview and Economic Outlook

Abstract

Grid‐connected photovoltaic (PV) electricity production is steadily growing at the margin of conventional power generation, but its management is becoming more complex. To overcome this challenge, we propose a transformation of variable renewable energy (VRE) resources into firm power generation. Drawing on insights from IEA PVPS Task 16 case studies, it becomes evident that achieving nearly 100% VRE power grids that reliably meet demand year‐round can be economically viable through optimal VRE transformation. This transformation involves various traditional methods, e.g., storage, VRE blending, geographical dispersion, and load flexibility. However, overbuilding VRE capacity and controlled curtailment, acting as implicit energy storage, are now seen as essential prerequisites for this transformation. Nevertheless, aligning this vision with the current market rules poses a dilemma as it doesn’t necessarily align with VRE producers’ interests. This predicament calls for a reconsideration of VRE market regulations. Current designs based on marginal energy production signals do not suffice. Instead, we advocate for market rules grounded in the capacity of firmly enabled VREs rather than their energy output. Ultimately, the economic model should harmonize with the variability of VRE resources, rather than forcing VRE resources to adapt to existing market structures.This article is protected by copyright. All rights reserved.