Grid Value and Cost of Utility-Scale Wind and Solar: Potential Implications for Consumer Electricity Bills [Slides]

Technical Report · Tue Jun 25 04:00:00 EDT 2024

DOI:https://doi.org/10.2172/2377334· OSTI ID:2377334

Wiser, Ryan ^[1]; Bolinger, Mark ^[1]; Millstein, Dev ^[1]; Seel, Joachim ^[1]

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1. Lawrence Berkeley National Laboratory (LBNL), Berkeley, CA (United States)

Wind and solar cost declines and wholesale power price fluctuations have once again brought the “hedge value” of renewable energy to front of mind. Meanwhile, recent research has found that cost savings are the most persuasive driver of broad support for renewable energy. Yet whether consumers directly benefit from the price hedge that wind and solar can provide depends on various factors, most notably the contractual and market structures under which these generators operate. Drawing upon a vast amount of plant-level empirical data, we quantify the net market value (“net value”) of wind and solar over time and explore various factors that determine the extent to which consumers can capture and benefit from that value. The focus is on elements that may directly impact consumer electricity bills.

• Research Organization: Lawrence Berkeley National Laboratory (LBNL), Berkeley, CA (United States)
• Sponsoring Organization: USDOE Office of Energy Efficiency and Renewable Energy (EERE), Renewable Power Office. Solar Energy Technologies Office
• DOE Contract Number: AC02-05CH11231
• OSTI ID: 2377334
• Country of Publication: United States
• Language: English

Related Subjects

14 SOLAR ENERGY
17 WIND ENERGY
29 ENERGY PLANNING, POLICY, AND ECONOMY