Despite International Energy Agency ‘requirements’ to reduce energy use in order to reduce carbon dioxide emissions, global energy demand is still increasing. Renewable energy has made swift inroads into power generation, with wind and solar power (variable renewable energy sources, VRES) now making up a significant proportion of power generation in many developed countries. However, the Nirvana of 100% power generation from renewables still appears elusive as power systems struggle to cope with the impacts of increasing amounts of VRES in the system. A decade or more ago it was relatively easy to look at gas markets in isolation to electricity markets, but as VRES has increased volatility in electricity markets, this has flowed over into increasing volatility in gas markets as gas is increasingly used to provide the back-up generation to VRES. Gas and electricity markets are now more entwined and interdependent than ever before, and that is only likely to increase. Renewable energy proponents have long stated that solar and wind power are the cheapest forms of electricity to install and should be built out in preference to all other forms of supply. Levelised cost of electricity calculations are often used to support these claims. However, the buildout of solar power in particular has resulted in oversupply during the middle of the day and negative pricing has become a common event in electricity markets with high levels of VRES, resulting in a stalling of the installation of commercial solar and wind arms. Residential solar PV buildout continues with the support of government subsidies. This paper and presentation will shine a light on the impact of increasing levels of renewable energy power generation, highlighting the increasing need for an energy source that can provide the back-up to guarantee security of supply 24/7. It will highlight why increasing renewable energy sources will not lead to cheaper electricity and outline options available to diversify the energy mix and reduce emissions.
Martin Wilkes (Thu,) studied this question.