Solar and wind do not harm US grid, draft DoE report states

Facebook
Twitter
LinkedIn
Reddit
Email

The deployment of renewables does not have a negative impact on the grid, according to a draft of the report commissioned by US energy secretary Rick Perry.

The leaked incomplete version of the study has been reported by Bloomberg and Reuters with the latter making it publicly available. Perry had asked for clarity on whether the loss of baseload generation sources was driving up prices.

This article requires Premium SubscriptionBasic (FREE) Subscription

Unlock unlimited access for 12 whole months of distinctive global analysis

Photovoltaics International is now included.

  • Regular insight and analysis of the industry’s biggest developments
  • In-depth interviews with the industry’s leading figures
  • Unlimited digital access to the PV Tech Power journal catalogue
  • Unlimited digital access to the Photovoltaics International journal catalogue
  • Access to more than 1,000 technical papers
  • Discounts on Solar Media’s portfolio of events, in-person and virtual

Or continue reading this article for free

The draft deflates this concern.

“One of the benefits of renewable energy is that it can serve as a hedge for more volatile fossil-fuelled generation. Many customers seek a steady bill payment because it’s easier to budget for and manage than a bill that varies by month. To the degree that renewable energy stabilizes the cost of an overall energy portfolio (or even just a customer’s bill), that affects perceived affordability.”

It also backs existing studies that claim “significantly higher levels of renewable energy can be integrated without any compromise of system reliability”. It then lists numerous examples from various regions and US states where renewable penetration has risen above 30%. A parallel report by clean energy advocates had similar findings in June.

In April, Perry requested the wide-ranging review to assess the impact of renewables on the grid and whether they had contributed to accelerated retirement of coal power generation. The draft identifies a number of minor factors but is clear that the main trigger for coal retirements has been market forces, not environmental regulations or subsidies for renewables.

The DoE published its budget without awaiting the recommendations of the report.

Potential solutions

A number of options are presented to improve the reliability, stability and affordability of US power infrastructure including a carbon tax, zero emission portfolio standards, electrification of industry and transport, greater use of PPAs and a host of measures to cut red tape.

Top of the list of possible solutions is energy storage. The draft suggests removing restrictions on assets classes and enabling a market for the services that storage provides including long-term contracting and ancillary services.

Unfinished

The draft, date 26 June includes several throwaway remarks serving as placeholders.

A section on negative pricing states that it is not currently a “huge issue”, before listing “LBNL paper, Wilson research with market monitors” and “logic” as supporting factors.

A section on market distortion simply states: “everything distorts markets”.

21 May 2024
Napa, USA
PV Tech has been running PV ModuleTech Conferences since 2017. PV ModuleTech USA, on 21-22 May 2024, will be our third PV ModulelTech conference dedicated to the U.S. utility scale solar sector. The event will gather the key stakeholders from solar developers, solar asset owners and investors, PV manufacturing, policy-making and and all interested downstream channels and third-party entities. The goal is simple: to map out the PV module supply channels to the U.S. out to 2025 and beyond.
8 October 2024
San Francisco Bay Area, USA
PV Tech has been running an annual PV CellTech Conference since 2016. PV CellTech USA, on 8-9 October 2024 is our second PV CellTech conference dedicated to the U.S. manufacturing sector. The event in 2023 was a sell out success and 2024 will once again gather the key stakeholders from PV manufacturing, equipment/materials, policy-making and strategy, capital equipment investment and all interested downstream channels and third-party entities. The goal is simple: to map out PV manufacturing in the U.S. out to 2030 and beyond.

Read Next

Subscribe to Newsletter

Upcoming Events

Solar Media Events
April 17, 2024
Lisbon, Portugal
Solar Media Events
May 1, 2024
Dallas, Texas
Solar Media Events
May 21, 2024
Sydney, Australia