LCOE refers to cost of generating electrical energy. Value of energy is a different matter. Solar+storage has higher LCOE than solar only but it can capture higher value
Very good analysis. I think putting it in simpler words would be even better. And this also is a big consideration in Texas USA. Especially in the summer.
Texas runs on around 25 to 30 percent non-emmiting generation. But on 105+ °F days, sunsets are always interesting. Especially when the wind decides to go rouge. Because of blowback from snowpocalypse 2021, the Public Utility Council took a reliability first mandate. Which clashes with the renewable first mandate. So as the sun comes down the peakers are deployed making generation prices go wild.
Perhaps having a more reliable baseload would be most prudent. The always on things like nuclear and hydro and wave action generation. These keep the cost stable.
I am not an economist, but I sure wish I could trade electricity. Wait isn't that why Enron got in trouble?
LCOE refers to cost of generating electrical energy. Value of energy is a different matter. Solar+storage has higher LCOE than solar only but it can capture higher value
Very good analysis. I think putting it in simpler words would be even better. And this also is a big consideration in Texas USA. Especially in the summer.
Texas runs on around 25 to 30 percent non-emmiting generation. But on 105+ °F days, sunsets are always interesting. Especially when the wind decides to go rouge. Because of blowback from snowpocalypse 2021, the Public Utility Council took a reliability first mandate. Which clashes with the renewable first mandate. So as the sun comes down the peakers are deployed making generation prices go wild.
Perhaps having a more reliable baseload would be most prudent. The always on things like nuclear and hydro and wave action generation. These keep the cost stable.
I am not an economist, but I sure wish I could trade electricity. Wait isn't that why Enron got in trouble?
Thank you for the clear discussion of LCOE and CfD, and their limitations.