TY - JOUR

T1 - On the economics of electrical storage for variable renewable energy sources

AU - Zerrahn, Alexander

AU - Schill, Wolf Peter

AU - Kemfert, Claudia

PY - 2018/9/1

Y1 - 2018/9/1

N2 - The use of renewable energy sources is a major strategy to mitigate climate change. Yet Sinn (2017) argues that excessive electrical storage requirements limit the further expansion of variable wind and solar energy. We question, and alter, strong implicit assumptions of Sinn's approach and find that storage needs are considerably lower, up to two orders of magnitude. First, we move away from corner solutions by allowing for combinations of storage and renewable curtailment. Second, we specify a parsimonious optimization model that explicitly considers an economic efficiency perspective. We conclude that electrical storage is unlikely to limit the transition to renewable energy.

AB - The use of renewable energy sources is a major strategy to mitigate climate change. Yet Sinn (2017) argues that excessive electrical storage requirements limit the further expansion of variable wind and solar energy. We question, and alter, strong implicit assumptions of Sinn's approach and find that storage needs are considerably lower, up to two orders of magnitude. First, we move away from corner solutions by allowing for combinations of storage and renewable curtailment. Second, we specify a parsimonious optimization model that explicitly considers an economic efficiency perspective. We conclude that electrical storage is unlikely to limit the transition to renewable energy.

KW - Economics

KW - Energy storage

KW - Solar

KW - Variable renewable energy sources

KW - Wind

UR - http://www.scopus.com/inward/record.url?scp=85052284225&partnerID=8YFLogxK

U2 - 10.1016/j.euroecorev.2018.07.004

DO - 10.1016/j.euroecorev.2018.07.004

M3 - Journal articles

AN - SCOPUS:85052284225

VL - 108

SP - 259

EP - 279

JO - European Economic Review

JF - European Economic Review

SN - 0014-2921

ER -