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A systematic review of the costs and impacts of integrating variable renewables into power grids

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  • Philip J. Heptonstall

    (Imperial College London)

  • Robert J. K. Gross

    (Imperial College London)

Abstract

The impact of variable renewable energy (VRE) sources on an electricity system depends on technological characteristics, demand, regulatory practices and renewable resources. The costs of integrating wind or solar power into electricity networks have been debated for decades yet remain controversial and often misunderstood. Here we undertake a systematic review of the international evidence on the cost and impact of integrating wind and solar to provide policymakers with evidence to inform strategic choices about which technologies to support. We find a wide range of costs across the literature that depend largely on the price and availability of flexible system operation. Costs are small at low penetrations of VRE and can even be negative. Data are scarce at high penetrations, but show that the range widens. Nonetheless, VRE sources can be a key part of a least-cost route to decarbonization.

Suggested Citation

  • Philip J. Heptonstall & Robert J. K. Gross, 2021. "A systematic review of the costs and impacts of integrating variable renewables into power grids," Nature Energy, Nature, vol. 6(1), pages 72-83, January.
    • Handle: RePEc:nat:natene:v:6:y:2021:i:1:d:10.1038_s41560-020-00695-4
    DOI: 10.1038/s41560-020-00695-4
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    Cited by:

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    2. Bojana Škrbić & Željko Đurišić, 2023. "Novel Planning Methodology for Spatially Optimized RES Development Which Minimizes Flexibility Requirements for Their Integration into the Power System," Energies, MDPI, vol. 16(7), pages 1-34, April.
    3. An, Kangxin & Wang, Can & Cai, Wenjia, 2023. "Low-carbon technology diffusion and economic growth of China: an evolutionary general equilibrium framework," Structural Change and Economic Dynamics, Elsevier, vol. 65(C), pages 253-263.
    4. Parra, David & Mauger, Romain, 2022. "A new dawn for energy storage: An interdisciplinary legal and techno-economic analysis of the new EU legal framework," Energy Policy, Elsevier, vol. 171(C).
    5. Yingdan Mei & Pengfei Liu & Lina Meng & Lu Lin, 2024. "Evaluate the Impacts of Wind Farm Facilities on Land Values with Geographically-Linked Microdata in China," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 87(2), pages 465-489, February.
    6. Chyong, Chi Kong & Reiner, David M. & Ly, Rebecca & Fajardy, Mathilde, 2023. "Economic modelling of flexible carbon capture and storage in a decarbonised electricity system," Renewable and Sustainable Energy Reviews, Elsevier, vol. 188(C).
    7. Nguyen, Thi Ngoc & Müsgens, Felix, 2022. "What drives the accuracy of PV output forecasts?," Applied Energy, Elsevier, vol. 323(C).
    8. Karla Miranda & Ana Victoria Tarín-Santiso & Armando Llamas-Terrés & Oliver Probst, 2022. "The Electricity Generation Dispatch in Mexico: An Uncertain Road towards Sustainability," Energies, MDPI, vol. 15(23), pages 1-24, November.
    9. Chad Zanocco & Tao Sun & Gregory Stelmach & June Flora & Ram Rajagopal & Hilary Boudet, 2022. "Assessing Californians’ awareness of their daily electricity use patterns," Nature Energy, Nature, vol. 7(12), pages 1191-1199, December.
    10. Perera, A.T.D. & Khayatian, F. & Eggimann, S. & Orehounig, K. & Halgamuge, Saman, 2022. "Quantifying the climate and human-system-driven uncertainties in energy planning by using GANs," Applied Energy, Elsevier, vol. 328(C).
    11. Mou, Dunguo & Wang, Zining, 2022. "A systematic analysis of integrating variable wind power into Fujian power grid," Energy Policy, Elsevier, vol. 170(C).
    12. Han, Zhixin & Fang, Debin & Yang, Peiwen & Lei, Leyao, 2023. "Cooperative mechanisms for multi-energy complementarity in the electricity spot market," Energy Economics, Elsevier, vol. 127(PB).
    13. Gorbach, O.G. & Kost, C. & Pickett, C., 2022. "Review of internal carbon pricing and the development of a decision process for the identification of promising Internal Pricing Methods for an Organisation," Renewable and Sustainable Energy Reviews, Elsevier, vol. 154(C).
    14. Jager, Henriette I. & Griffiths, Natalie A. & Hansen, Carly H. & King, Anthony W. & Matson, Paul G. & Singh, Debjani & Pilla, Rachel M., 2022. "Getting lost tracking the carbon footprint of hydropower," Renewable and Sustainable Energy Reviews, Elsevier, vol. 162(C).
    15. Chi Kong Chyong & Michael Pollitt & David M. Reiner & Carmen Li, 2023. "Modelling flexibility requirements in European 2050 deep decarbonisation scenarios: the role of conventional flexibility and sector coupling options," Working Papers EPRG2302, Energy Policy Research Group, Cambridge Judge Business School, University of Cambridge.
    16. Pradhan, Ashis Kumar & Rout, Sandhyarani & Khan, Imran Ahmed, 2021. "Does market concentration affect wholesale electricity prices? An analysis of the Indian electricity sector in the COVID-19 pandemic context," Utilities Policy, Elsevier, vol. 73(C).
    17. Ruhnau, Oliver, 2022. "How flexible electricity demand stabilizes wind and solar market values: The case of hydrogen electrolyzers," Applied Energy, Elsevier, vol. 307(C).
    18. Thi Ngoc Nguyen & Felix Musgens, 2021. "What drives the accuracy of PV output forecasts?," Papers 2111.02092, arXiv.org.
    19. Song, Feng & Cui, Jian & Yu, Yihua, 2022. "Dynamic volatility spillover effects between wind and solar power generations: Implications for hedging strategies and a sustainable power sector," Economic Modelling, Elsevier, vol. 116(C).
    20. Li, Xiao & Liu, Pan & Cheng, Lei & Cheng, Qian & Zhang, Wei & Xu, Shitian & Zheng, Yalian, 2023. "Strategic bidding for a hydro-wind-photovoltaic hybrid system considering the profit beyond forecast time," Renewable Energy, Elsevier, vol. 204(C), pages 277-289.
    21. Steele, Amanda Harker & Sharma, Smriti & Pena Cabra, Ivonne & Clahane, Luke & Iyengar, Arun, 2023. "A tool for measuring the system cost of replacement energy," Energy, Elsevier, vol. 275(C).
    22. Crozier, Constance & Baker, Kyri, 2022. "The effect of renewable electricity generation on the value of cross-border interconnection," Applied Energy, Elsevier, vol. 324(C).

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