Will Solar Eat Its Own Lunch?
Here’s an article that explores what happens when the penetration of solar PV into the grid mix is so large that it begins to create an over-supply, thus driving the price down for incremental amounts of energy generated from this source. Kathryn Alexander, 2GreenEnergy “associate” in the corporate sustainability space and I will be talking about this subject on the phone this week, after which I’ll create a podcast of the conversation for anyone who may be interested.
High penetration of any energy source will tend to prove less efficient for the system as a whole, lowering the value of energy from that source –
High penetration of wind and solar give rise to excess power at certain times forcing low selling prices when it is especially sunny or windy.
High penetration of Nuclear power leaves the grid with problems delivering variable output to meet changing demand, – think of a Sunday in spring with no heating and very little cooling required, andb offices and schools shut.
The same difficulties apply to baseload coal, and gas fired plants designed for continuous output at near full capacity.
Excess hydro-power can result in significant environmental costs, and overcapacity in wet years, and shortages in dry years.
Overall, it is best to have a mix of sources so that there is not too heavy a dependence on one source. (Such mixed energy sourcing effectively hedges the system against difficulties arsing in one component in the mix.)
Personally, I am very much in favour of a mix of low / no carbon energy sources combined with wide geographical integration (grid upgrades), and some storage – be it in hydro dams, hot water tanks, static batteries, or electric vehicles. That way, it is easier to integrate the variability – especially in areas where wind and solar are subject to large seasonal variations.