Strategies for Mitigating the Reduction in Economic Value of Variable Generation with Increasing Penetration Levels

You are here


Looking at 4 variable generation technologies (wind, single-axis tracking PV, CSP with no storage, & CSP with thermal energy storage), the authors look at the benefits of mitigation measures. In particular, the authors are looking at specific mitigation measures to first find those measures that provide an increase to the value of variable generation technologies and then seeks to determine whether such mitigation measures are themselves economically attractive. Some of the conclusions the authors come to: 

  • PV value’s biggest boost comes above 10% penetration with both low-cost bulk storage and real time pricing – but this interaction is different at different penetration levels. At penetration levels below 5%, this reduces the value of PV whilst the same measures have a positive effect at higher penetration levels.
  • Storage is more beneficial in improving PV’s value than wind’s.
  • If wind or PV penetration is economic at 10-20%, results suggest the same economic case hold for combinations of these technologies up to 30%.

Sign up for the latest alerts

Get emails from SEIA and be the first to know about solar news and issues in your state.

Or, sign up for our press list.