Future wind and solar power market values in Germany — Evidence of spatial and technological dependencies?

Egele, Manuel; Hobbie, Hannes; Möst, Dominik

doi:10.1016/j.eneco.2019.104638

Cited by 61 publications

(20 citation statements)

References 41 publications

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“…This decomposition loosely builds on concepts from modeling efforts 9,36 and complements evaluations of VRE integration costs [37][38][39][40] and efforts to identify value decline mitigation strategies. 8,[41][42][43][44][45] We also compare recent value decline trends with forward-looking modeling studies, providing context for how these trends might evolve in the future. We take care to develop realistic temporal profiles of generation-each wind and solar plant is modeled individually, and the resulting output is then bias corrected with a combination of records from various sources, including hourly records where available.…”

Section: Context and Scalementioning

confidence: 99%

Solar and wind grid system value in the United States: The effect of transmission congestion, generation profiles, and curtailment

Millstein

Wiser

Mills

et al. 2021

Joule

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Increased wind and solar energy generation is needed to meet decarbonization goals. However, increased electricity supply during sunny or windy hours drives down electricity prices, and thus wind and solar value, potentially slowing wind and solar deployment. Here, we measure value decline over time based on potential energy and capacity revenue at wind and solar plants across the United States. We assess the causes of value decline, comparing generation timing, transmission congestion, and curtailment, and discuss strategies for its mitigation.

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Section: Context and Scalementioning

confidence: 99%

Solar and wind grid system value in the United States: The effect of transmission congestion, generation profiles, and curtailment

Millstein

Wiser

Mills

et al. 2021

Joule

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“…Firstly, we complement the literature on the market value of wind power by estimating the impact of heat electrification and thermal storage. While many sensitivity analyses on the market value have been carried out (e.g., International Energy Agency, 2014; Wiser, 2014, 2015;Hirth, 2016b;Bistline, 2017;Eising et al, 2020), decentralized electric heating and related flexibility has not been in the focus so far. On the other hand, existing studies on the combination of wind power and heat electrification did not focus on the wind value 5 .…”

Section: Introductionmentioning

confidence: 99%

Heating with wind: Economics of heat pumps and variable renewables

2020

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With the growth of wind and solar energy in electricity supply, the electrification of space heating is becoming a promising decarbonization option. In turn, such electrification may help the power system integration of variable renewables, for two reasons: thermal storage could provide low-cost flexibility and heat demand is seasonally correlated with wind power. However, temporal fluctuations in heat demand may also imply new challenges for the power system. This study assesses the economic characteristics of electric heat pumps and wind energy and studies their interaction on wholesale electricity markets. Using a numerical electricity market model, we estimate the economic value of wind energy and the economic cost of powering heat pumps. We find that, just as expanding wind energy depresses its €/MWhel value, adopting heat pumps increases their €/MWhel cost. This rise can be mitigated by synergistic effects with wind power, "system-friendly" heat pump technology, and thermal storage. Furthermore, heat pumps raise the wind market value, but this effect vanishes if accounting for the additional wind energy needed to serve the heat pump load. Thermal storage facilitates the system integration of wind power but competes with other flexibility options. For an efficient adoption of heat pumps and thermal storage, we argued that retail tariffs for heat pump customers should reflect their underlying economic cost.

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“…Interestingly, this study finds that a concentration, rather than diversification, of wind turbines at the windiest locations of Germany is most efficient in terms of total system costs (Pfluger et al, 2017b). With regards to market values, this finding is also made by (Eising et al, 2020), who finds market values to be higher for a concentrated, rather than distributed allocation. Yet, these studies lack a market value and profitability assessment and the coverage of very low wind speed turbines (< 250 W/m 2 ) as presented in our study.…”

Section: Literature Review and Theoretical Foundationsmentioning

confidence: 55%

Optimal configuration and diversification of wind turbines: A hybrid approach to improve the penetration of wind power

Klie

Madlener

2022

Energy Economics

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Future wind and solar power market values in Germany — Evidence of spatial and technological dependencies?

Cited by 61 publications

References 41 publications

Solar and wind grid system value in the United States: The effect of transmission congestion, generation profiles, and curtailment

Solar and wind grid system value in the United States: The effect of transmission congestion, generation profiles, and curtailment

Heating with wind: Economics of heat pumps and variable renewables

Optimal configuration and diversification of wind turbines: A hybrid approach to improve the penetration of wind power

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