Next-Generation Wind and Solar Power: From Cost to Value
Executive Summary
This report, prepared by the System Integration of Renewables (SIR) Unit of the International Energy Agency (IEA), focuses on the transition from traditional energy systems to those incorporating variable renewable energy (VRE). It highlights the importance of VRE in achieving energy security, economic development, and climate change mitigation.
Chapter 1: Background, Introduction, and the Case for Variable Renewable Energy (VRE)
- The Case for VRE: VRE is crucial for enhancing energy security, driving economic development, and mitigating climate change.
- Cost Reductions: Significant decreases in the costs of wind and solar technologies have made them competitive with conventional energy sources.
- Energy Security: Diversification of energy sources reduces reliance on fossil fuels and enhances security.
- Economic Development: Investment in VRE can stimulate job creation and economic growth.
- Climate Change Mitigation: Reducing greenhouse gas emissions is essential for combating climate change.
Chapter 2: Next-Generation Wind and Solar Power and System Integration
- System Integration: The integration of VRE into existing power systems requires new approaches and technologies.
- Properties of VRE Generators: Variability and intermittency are key characteristics that must be managed.
- Power System Flexibility: Enhancing flexibility is critical for integrating large amounts of VRE.
- Different Phases of System Transformation: The transition involves initial deployment, reaching double-digit shares, and full transformation.
- A Paradigm Shift for Low- and Medium-Voltage Grids: Grids will need to adapt to handle higher levels of VRE.
- System Value: Going beyond just cost considerations, system value includes reliability, resilience, and environmental benefits.
Chapter 3: Achieving System-Friendly VRE Deployment
- System Service Capabilities: Ensuring that VRE can provide essential grid services like frequency regulation.
- Location of Deployment: Strategic placement of VRE projects can optimize performance and reduce costs.
- Technology Mix: Combining different types of renewable technologies to achieve optimal results.
- Local Integration with Other Resources: Integrating VRE with other local resources can enhance overall system performance.
- Optimizing Generation Time Profile: Maximizing the use of VRE during peak demand periods.
- Focus on Onshore Wind: Onshore wind projects are more cost-effective and scalable.
- Focus on Solar PV: Solar photovoltaic (PV) systems offer high potential for expansion and can be integrated effectively.
- Integrated Planning: Coordinated planning across multiple sectors is necessary for successful VRE deployment.
Chapter 4: Conclusions and Recommendations
- Summary: The report emphasizes the need to reflect system value (SV) in renewable energy (RE) policy frameworks.
- Recommendations: Specific recommendations are provided for policymakers and stakeholders to facilitate the transition to next-generation VRE.
Chapter 5: Case Studies
- Introduction to Scope and Methodology: An overview of the case studies and methodology used.
- Brazil: A detailed case study of VRE and grid integration in Brazil, covering market and policy frameworks, and system transformation.
This report underscores the transformative potential of next-generation wind and solar power, highlighting the need for strategic planning and systemic changes to fully realize their benefits.
