IDEAS home Printed from https://ideas.repec.org/a/eee/appene/v135y2014icp704-720.html
   My bibliography  Save this article

Using the sun to decarbonize the power sector: The economic potential of photovoltaics and concentrating solar power

Author

Listed:
  • Pietzcker, Robert Carl
  • Stetter, Daniel
  • Manger, Susanne
  • Luderer, Gunnar

Abstract

Photovoltaics (PV) has recently undergone impressive growth and substantial cost decreases, while deployment for concentrating solar power (CSP) has been much slower. As the share of PV rises, the challenge of system integration will increase. This favors CSP, which can be combined with thermal storage and co-firing to reduce variability. It is thus an open question how important solar power will be for achieving climate mitigation targets, and which solar technology will be dominant in the long-term.

Suggested Citation

  • Pietzcker, Robert Carl & Stetter, Daniel & Manger, Susanne & Luderer, Gunnar, 2014. "Using the sun to decarbonize the power sector: The economic potential of photovoltaics and concentrating solar power," Applied Energy, Elsevier, vol. 135(C), pages 704-720.
    • Handle: RePEc:eee:appene:v:135:y:2014:i:c:p:704-720
    DOI: 10.1016/j.apenergy.2014.08.011
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0306261914008149
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.apenergy.2014.08.011?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Tsikalakis, Antonis & Tomtsi, T. & Hatziargyriou, N.D. & Poullikkas, A. & Malamatenios, Ch. & Giakoumelos, E. & Jaouad, O. Cherkaoui & Chenak, A. & Fayek, A. & Matar, T. & Yasin, A., 2011. "Review of best practices of solar electricity resources applications in selected Middle East and North Africa (MENA) countries," Renewable and Sustainable Energy Reviews, Elsevier, vol. 15(6), pages 2838-2849, August.
    2. Zhang, Yabei & Smith, Steven J. & Kyle, G. Page & Stackhouse Jr., Paul W., 2010. "Modeling the potential for thermal concentrating solar power technologies," Energy Policy, Elsevier, vol. 38(12), pages 7884-7897, December.
    3. Izquierdo, Salvador & Montañés, Carlos & Dopazo, César & Fueyo, Norberto, 2010. "Analysis of CSP plants for the definition of energy policies: The influence on electricity cost of solar multiples, capacity factors and energy storage," Energy Policy, Elsevier, vol. 38(10), pages 6215-6221, October.
    4. Fthenakis, Vasilis & Mason, James E. & Zweibel, Ken, 2009. "The technical, geographical, and economic feasibility for solar energy to supply the energy needs of the US," Energy Policy, Elsevier, vol. 37(2), pages 387-399, February.
    5. Viebahn, Peter & Lechon, Yolanda & Trieb, Franz, 2011. "The potential role of concentrated solar power (CSP) in Africa and Europe--A dynamic assessment of technology development, cost development and life cycle inventories until 2050," Energy Policy, Elsevier, vol. 39(8), pages 4420-4430, August.
    6. Rasmussen, Morten Grud & Andresen, Gorm Bruun & Greiner, Martin, 2012. "Storage and balancing synergies in a fully or highly renewable pan-European power system," Energy Policy, Elsevier, vol. 51(C), pages 642-651.
    7. Gunnar Luderer & Volker Krey & Katherine Calvin & James Merrick & Silvana Mima & Robert Pietzcker & Jasper Vliet & Kenichi Wada, 2014. "The role of renewable energy in climate stabilization: results from the EMF27 scenarios," Climatic Change, Springer, vol. 123(3), pages 427-441, April.
    8. Pietzcker, Robert C. & Longden, Thomas & Chen, Wenying & Fu, Sha & Kriegler, Elmar & Kyle, Page & Luderer, Gunnar, 2014. "Long-term transport energy demand and climate policy: Alternative visions on transport decarbonization in energy-economy models," Energy, Elsevier, vol. 64(C), pages 95-108.
    9. Haller, Markus & Ludig, Sylvie & Bauer, Nico, 2012. "Decarbonization scenarios for the EU and MENA power system: Considering spatial distribution and short term dynamics of renewable generation," Energy Policy, Elsevier, vol. 47(C), pages 282-290.
    10. Gunnar Luderer & Volker Krey & Katherine Calvin & James Merrick & Silvana Mima & Robert Pietzcker & Jasper van Vliet & Kenichi Wada, 2014. "The role of renewable energy in climate stabilization: results from the EMF27 scenarios," Post-Print halshs-00961843, HAL.
    11. Denholm, Paul & Margolis, Robert M., 2007. "Evaluating the limits of solar photovoltaics (PV) in electric power systems utilizing energy storage and other enabling technologies," Energy Policy, Elsevier, vol. 35(9), pages 4424-4433, September.
    12. Schaber, Katrin & Steinke, Florian & Hamacher, Thomas, 2012. "Transmission grid extensions for the integration of variable renewable energies in Europe: Who benefits where?," Energy Policy, Elsevier, vol. 43(C), pages 123-135.
    13. Behar, Omar & Khellaf, Abdallah & Mohammedi, Kamal, 2013. "A review of studies on central receiver solar thermal power plants," Renewable and Sustainable Energy Reviews, Elsevier, vol. 23(C), pages 12-39.
    14. Bazilian, Morgan & Onyeji, Ijeoma & Liebreich, Michael & MacGill, Ian & Chase, Jennifer & Shah, Jigar & Gielen, Dolf & Arent, Doug & Landfear, Doug & Zhengrong, Shi, 2013. "Re-considering the economics of photovoltaic power," Renewable Energy, Elsevier, vol. 53(C), pages 329-338.
    15. Ueckerdt, Falko & Hirth, Lion & Luderer, Gunnar & Edenhofer, Ottmar, 2013. "System LCOE: What are the costs of variable renewables?," Energy, Elsevier, vol. 63(C), pages 61-75.
    16. Hirth, Lion & Ueckerdt, Falko, 2013. "Redistribution effects of energy and climate policy: The electricity market," Energy Policy, Elsevier, vol. 62(C), pages 934-947.
    17. Fernández-García, A. & Zarza, E. & Valenzuela, L. & Pérez, M., 2010. "Parabolic-trough solar collectors and their applications," Renewable and Sustainable Energy Reviews, Elsevier, vol. 14(7), pages 1695-1721, September.
    18. Hirth, Lion, 2013. "The market value of variable renewables," Energy Economics, Elsevier, vol. 38(C), pages 218-236.
    19. Zhang, H.L. & Baeyens, J. & Degrève, J. & Cacères, G., 2013. "Concentrated solar power plants: Review and design methodology," Renewable and Sustainable Energy Reviews, Elsevier, vol. 22(C), pages 466-481.
    20. Candelise, Chiara & Winskel, Mark & Gross, Robert J.K., 2013. "The dynamics of solar PV costs and prices as a challenge for technology forecasting," Renewable and Sustainable Energy Reviews, Elsevier, vol. 26(C), pages 96-107.
    21. Trieb, Franz & Müller-Steinhagen, Hans & Kern, Jürgen, 2011. "Financing concentrating solar power in the Middle East and North Africa--Subsidy or investment?," Energy Policy, Elsevier, vol. 39(1), pages 307-317, January.
    22. Peters, Michael & Schmidt, Tobias S. & Wiederkehr, David & Schneider, Malte, 2011. "Shedding light on solar technologies'A techno-economic assessment and its policy implications," Energy Policy, Elsevier, vol. 39(10), pages 6422-6439, October.
    23. Kahouli-Brahmi, Sondes, 2008. "Technological learning in energy-environment-economy modelling: A survey," Energy Policy, Elsevier, vol. 36(1), pages 138-162, January.
    24. Trieb, Franz & Schillings, Christoph & Pregger, Thomas & O'Sullivan, Marlene, 2012. "Solar electricity imports from the Middle East and North Africa to Europe," Energy Policy, Elsevier, vol. 42(C), pages 341-353.
    25. Mercure, Jean-François & Salas, Pablo, 2012. "An assessement of global energy resource economic potentials," Energy, Elsevier, vol. 46(1), pages 322-336.
    26. Gunnar Luderer & Valentina Bosetti & Michael Jakob & Marian Leimbach & Jan Steckel & Henri Waisman & Ottmar Edenhofer, 2012. "The economics of decarbonizing the energy system—results and insights from the RECIPE model intercomparison," Climatic Change, Springer, vol. 114(1), pages 9-37, September.
    27. McDonald, Alan & Schrattenholzer, Leo, 2001. "Learning rates for energy technologies," Energy Policy, Elsevier, vol. 29(4), pages 255-261, March.
    28. Neij, Lena, 2008. "Cost development of future technologies for power generation--A study based on experience curves and complementary bottom-up assessments," Energy Policy, Elsevier, vol. 36(6), pages 2200-2211, June.
    29. Luderer, Gunnar & Pietzcker, Robert C. & Kriegler, Elmar & Haller, Markus & Bauer, Nico, 2012. "Asia's role in mitigating climate change: A technology and sector specific analysis with ReMIND-R," Energy Economics, Elsevier, vol. 34(S3), pages 378-390.
    30. Volker Krey & Gunnar Luderer & Leon Clarke & Elmar Kriegler, 2014. "Getting from here to there – energy technology transformation pathways in the EMF27 scenarios," Climatic Change, Springer, vol. 123(3), pages 369-382, April.
    31. Paul Lehmann & Felix Creutzig & Melf-Hinrich Ehlers & Nele Friedrichsen & Clemens Heuson & Lion Hirth & Robert Pietzcker, 2012. "Carbon Lock-Out: Advancing Renewable Energy Policy in Europe," Energies, MDPI, vol. 5(2), pages 1-32, February.
    32. Denholm, Paul & Hand, Maureen, 2011. "Grid flexibility and storage required to achieve very high penetration of variable renewable electricity," Energy Policy, Elsevier, vol. 39(3), pages 1817-1830, March.
    33. Lion Hirth, 2013. "The Market Value of Variable Renewables. The Effect of Solar and Wind Power Variability on their Relative Price," RSCAS Working Papers 2013/36, European University Institute.
    34. Ludig, Sylvie & Haller, Markus & Schmid, Eva & Bauer, Nico, 2011. "Fluctuating renewables in a long-term climate change mitigation strategy," Energy, Elsevier, vol. 36(11), pages 6674-6685.
    35. Branker, K. & Pathak, M.J.M. & Pearce, J.M., 2011. "A review of solar photovoltaic levelized cost of electricity," Renewable and Sustainable Energy Reviews, Elsevier, vol. 15(9), pages 4470-4482.
    36. van der Zwaan, Bob & Rabl, Ari, 2004. "The learning potential of photovoltaics: implications for energy policy," Energy Policy, Elsevier, vol. 32(13), pages 1545-1554, September.
    37. Denholm, Paul & Margolis, Robert M., 2007. "Evaluating the limits of solar photovoltaics (PV) in traditional electric power systems," Energy Policy, Elsevier, vol. 35(5), pages 2852-2861, May.
    38. Massetti, Emanuele & Ricci, Elena Claire, 2013. "An assessment of the optimal timing and size of investments in concentrated solar power," Energy Economics, Elsevier, vol. 38(C), pages 186-203.
    39. Schaber, Katrin & Steinke, Florian & Mühlich, Pascal & Hamacher, Thomas, 2012. "Parametric study of variable renewable energy integration in Europe: Advantages and costs of transmission grid extensions," Energy Policy, Elsevier, vol. 42(C), pages 498-508.
    40. Avila-Marin, Antonio L. & Fernandez-Reche, Jesus & Tellez, Felix M., 2013. "Evaluation of the potential of central receiver solar power plants: Configuration, optimization and trends," Applied Energy, Elsevier, vol. 112(C), pages 274-288.
    41. El Chaar, L. & lamont, L.A. & El Zein, N., 2011. "Review of photovoltaic technologies," Renewable and Sustainable Energy Reviews, Elsevier, vol. 15(5), pages 2165-2175, June.
    42. de Vries, Bert J.M. & van Vuuren, Detlef P. & Hoogwijk, Monique M., 2007. "Renewable energy sources: Their global potential for the first-half of the 21st century at a global level: An integrated approach," Energy Policy, Elsevier, vol. 35(4), pages 2590-2610, April.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Pietzcker, Robert C. & Ueckerdt, Falko & Carrara, Samuel & de Boer, Harmen Sytze & Després, Jacques & Fujimori, Shinichiro & Johnson, Nils & Kitous, Alban & Scholz, Yvonne & Sullivan, Patrick & Ludere, 2017. "System integration of wind and solar power in integrated assessment models: A cross-model evaluation of new approaches," Energy Economics, Elsevier, vol. 64(C), pages 583-599.
    2. Ueckerdt, Falko & Brecha, Robert & Luderer, Gunnar & Sullivan, Patrick & Schmid, Eva & Bauer, Nico & Böttger, Diana & Pietzcker, Robert, 2015. "Representing power sector variability and the integration of variable renewables in long-term energy-economy models using residual load duration curves," Energy, Elsevier, vol. 90(P2), pages 1799-1814.
    3. Hernández-Moro, J. & Martínez-Duart, J.M., 2013. "Analytical model for solar PV and CSP electricity costs: Present LCOE values and their future evolution," Renewable and Sustainable Energy Reviews, Elsevier, vol. 20(C), pages 119-132.
    4. Ueckerdt, Falko & Pietzcker, Robert & Scholz, Yvonne & Stetter, Daniel & Giannousakis, Anastasis & Luderer, Gunnar, 2017. "Decarbonizing global power supply under region-specific consideration of challenges and options of integrating variable renewables in the REMIND model," Energy Economics, Elsevier, vol. 64(C), pages 665-684.
    5. Soria, Rafael & Portugal-Pereira, Joana & Szklo, Alexandre & Milani, Rodrigo & Schaeffer, Roberto, 2015. "Hybrid concentrated solar power (CSP)–biomass plants in a semiarid region: A strategy for CSP deployment in Brazil," Energy Policy, Elsevier, vol. 86(C), pages 57-72.
    6. Scholz, Yvonne & Gils, Hans Christian & Pietzcker, Robert C., 2017. "Application of a high-detail energy system model to derive power sector characteristics at high wind and solar shares," Energy Economics, Elsevier, vol. 64(C), pages 568-582.
    7. Reichenberg, Lina & Hedenus, Fredrik & Odenberger, Mikael & Johnsson, Filip, 2018. "The marginal system LCOE of variable renewables – Evaluating high penetration levels of wind and solar in Europe," Energy, Elsevier, vol. 152(C), pages 914-924.
    8. Islam, Md Tasbirul & Huda, Nazmul & Abdullah, A.B. & Saidur, R., 2018. "A comprehensive review of state-of-the-art concentrating solar power (CSP) technologies: Current status and research trends," Renewable and Sustainable Energy Reviews, Elsevier, vol. 91(C), pages 987-1018.
    9. Sommerfeldt, Nelson & Madani, Hatef, 2017. "Revisiting the techno-economic analysis process for building-mounted, grid-connected solar photovoltaic systems: Part one – Review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 74(C), pages 1379-1393.
    10. Merrick, James H., 2016. "On representation of temporal variability in electricity capacity planning models," Energy Economics, Elsevier, vol. 59(C), pages 261-274.
    11. Jia, Teng & Dai, Yanjun & Wang, Ruzhu, 2018. "Refining energy sources in winemaking industry by using solar energy as alternatives for fossil fuels: A review and perspective," Renewable and Sustainable Energy Reviews, Elsevier, vol. 88(C), pages 278-296.
    12. van der Zwaan, Bob & Kober, Tom & Calderon, Silvia & Clarke, Leon & Daenzer, Katie & Kitous, Alban & Labriet, Maryse & Lucena, André F.P. & Octaviano, Claudia & Di Sbroiavacca, Nicolas, 2016. "Energy technology roll-out for climate change mitigation: A multi-model study for Latin America," Energy Economics, Elsevier, vol. 56(C), pages 526-542.
    13. Lion Hirth, 2015. "The Optimal Share of Variable Renewables: How the Variability of Wind and Solar Power affects their Welfare-optimal Deployment," The Energy Journal, International Association for Energy Economics, vol. 0(Number 1).
    14. Zack Norwood & Joel Goop & Mikael Odenberger, 2017. "The Future of the European Electricity Grid Is Bright: Cost Minimizing Optimization Shows Solar with Storage as Dominant Technologies to Meet European Emissions Targets to 2050," Energies, MDPI, vol. 10(12), pages 1-31, December.
    15. Schmid, Eva & Knopf, Brigitte, 2015. "Quantifying the long-term economic benefits of European electricity system integration," Energy Policy, Elsevier, vol. 87(C), pages 260-269.
    16. Tom Brown & Mirko Schäfer & Martin Greiner, 2019. "Sectoral Interactions as Carbon Dioxide Emissions Approach Zero in a Highly-Renewable European Energy System," Energies, MDPI, vol. 12(6), pages 1-16, March.
    17. Schill, Wolf-Peter, 2014. "Residual Load, Renewable Surplus Generation and Storage Requirements in Germany," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 73, pages 65-79.
    18. Edenhofer, Ottmar & Hirth, Lion & Knopf, Brigitte & Pahle, Michael & Schlömer, Steffen & Schmid, Eva & Ueckerdt, Falko, 2013. "On the economics of renewable energy sources," Energy Economics, Elsevier, vol. 40(S1), pages 12-23.
    19. Rubin, Edward S. & Azevedo, Inês M.L. & Jaramillo, Paulina & Yeh, Sonia, 2015. "A review of learning rates for electricity supply technologies," Energy Policy, Elsevier, vol. 86(C), pages 198-218.
    20. Sascha Samadi, 2017. "The Social Costs of Electricity Generation—Categorising Different Types of Costs and Evaluating Their Respective Relevance," Energies, MDPI, vol. 10(3), pages 1-37, March.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:appene:v:135:y:2014:i:c:p:704-720. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/wps/find/journaldescription.cws_home/405891/description#description .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.