Techno-economic feasibility of a renewable baseload power supply for data centers

This study examines the techno-economic feasibility of a renewable-based baseload power system designed to continuously supply 1GW˙e of renewable electricity to data centers in the Nordic environment. This off-grid system relies specifically on wind and solar power, but also a battery energy storage system and a backup power plant are used to meet the constant energy demand. The system configuration is optimized by minimizing the LCOE through a particle swarm optimization method. The study evaluates two distinct operational scenarios: a full baseload power supply (8760h/a) and a scenario with full-load hours of at least 8000h/a, mirroring the operational characteristics of nuclear power plants. The results indicate that the most cost-effective approach necessitates considerable overdimensioning of renewable generation assets, further demanding substantial energy curtailment. The dependence on backup generation and, by implication, the emerging costs, can be remarkably reduced in the 8000h/a scenario (15%–24% lower costs). The location of the variable renewable generation assets has a significant impact on the cost of supplied electricity, because the LCOE at the most favorable location can be even 24% lower than at the least favorable location. The LCOE for the continuous full-load operation results approximately in 100€/MWh˙e and decreases below 80€/MWh˙e in the 8000h/a scenario in the most favorable location. Especially compared with new nuclear power plants under construction, these results highlight that the renewable baseload system remains cost-competitive, even under less-than-optimal conditions, strengthening the case for renewable baseload solutions also in the Nordic countries.