Wind power energy storage and photovoltaic cost calculation

How do I estimate the true cost of wind and solar energy?

To estimate the true cost of wind and solar energy when redundancy requirements are included, we must consider the following additional costs: Overbuild of Capacity: Since solar and wind have lower capacity factors, more generation capacity must be installed to match the output of coal or natural gas plants.

What determines the value of wind and solar power?

Since the price of electricity varies over time, but wind and solar plants (without storage) cannot choose when to generate, the value of wind and solar power will be based on when the wind blows or sun shines. In addition, generation revenues depend on location—for both the quality of the wind or solar resource and the power prices in the region.

What are the integration costs of a wind or solar plant?

Integration costs may be incurred by the wind or solar plant, but are often borne by existing generators or elsewhere in the system. While dispatchable plants also impose integration costs, the integration costs of intermittent plants become significantly larger with increasing intermittent generation on the grid.

What is the intermittency of wind and solar power?

The intermittency of wind and solar power also affects the costs of their integration into the grid. Integration costs may be incurred by the wind or solar plant, but are often borne by existing generators or elsewhere in the system.

How will wind and solar generation costs change over time?

Whereas wind and solar generation costs are projected to decrease modestly over time—a 26 percent decline in wind and 32 percent decline in solar LCOE over the next 22 years—generation value and integration costs can change more rapidly.

What are the advantages of solar and wind power?

Having no marginal costs (fuel and variable O&M costs), solar and wind power are typically utilized whenever they generate, thereby displacing generators with higher marginal costs and lowering wholesale electricity prices at the time.