On the economics of electrical storage for variable renewable energy sources
Research output: Journal contributions › Journal articles › Research › peer-review
Standard
In: European Economic Review, Vol. 108, 01.09.2018, p. 259-279.
Research output: Journal contributions › Journal articles › Research › peer-review
Harvard
APA
Vancouver
Bibtex
}
RIS
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
UR - https://www.mendeley.com/catalogue/f283f987-016b-3bff-8251-fc8e3c126cee/
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 -