Renew Extra Weekly

The cost of renewable energy is falling rapidly, with it being claimed that it is now competitive with conventional energy supply in some cases. That means that renewables are replacing coal in many situations and may do in more, with costs continuing to fall, for example down to €14.8/MWh for PV projects in Portugal , an all-time low. However, as the use of wind and solar expands, so will the cost of balancing their variable outputs. The technical costs of balancing variable renewables have been extensively studied. One UK estimate is that they might add 10-15% to generation costs at medium levels of penetration, depending on what balancing technology is used. Nevertheless, it’s usually argued that, if the share of renewables on the grid goes up further, so will the balancing costs, and dramatically so. That may be true, although it depends on how the system is developed: some of the balancing techniques will actually reduce costs. For example, a study by the UK National I

A new Palgrave Handbook , edited by Geoff Wood and Keith Baker, on how to manage the decline of fossil fuel use, says that there is a paradox in the global energy transition as it has occurred so far. We have had growth in renewables and low carbon energy sources, but no concomitant decline in overall fossil fuel use: ‘Simply put, there needs to be a decoupling of fossil fuels and renewable/low carbon energy; the latter cannot just simply pick up the slack of increasing demand or serve difficult to reach places. Unaddressed and unresolved, all this will do is serve to bloat the energy system with the same problems for issues such as climate change and energy security’. It notes that, although renewables are expected to continue to be the fastest growing energy source, the global fossil fuel share will remain more-or-less constant. Indeed   BP has said that fossil fuels will continue to gain market share   to 2030 on the back of increasing energy demand, albeit at different speeds: