[go: up one dir, main page]
IDEAS home Printed from https://ideas.repec.org/a/eee/renene/v186y2022icp878-888.html
   My bibliography  Save this article

Optimized market value of alpine solar photovoltaic installations

Author

Listed:
  • Dujardin, Jérôme
  • Schillinger, Moritz
  • Kahl, Annelen
  • Savelsberg, Jonas
  • Schlecht, Ingmar
  • Lordan-Perret, Rebecca
Abstract
Solar photovoltaic (PV) is the most rapidly expanding renewable resource worldwide. Yet, its full potential may be hindered by mismatches with market demand and correlated production profiles. In this research, we explore a case study of innovative PV placements in alpine regions using two, soft-linked optimization models of Switzerland's electricity system. Using Swissmod, an electricity dispatch and load-flow model, and OREES, an electricity system model employing evolution strategy to optimize PV placement, we simulate market prices of optimized PV placements given multiple years of weather data, various CO2 prices, and considering future electricity infrastructure developments across Europe. Mountain placements result in higher market value and less required area relative to lower-altitude PV placement strategies. The higher market value is driven by better alignment with demand, particularly during winter when demand is highest. We found that optimized alpine placements offer revenues of panel capacity (EUR/kW/year) that are on average 20% higher than revenues from urban PV installations. Furthermore, the Swiss mountains could host more than 1 GW of capacity with even greater revenues (33%). Alpine PV installations, with their higher market values and increased value factors, can potentially be very profitable investments and are also valuable from a system perspective.

Suggested Citation

  • Dujardin, Jérôme & Schillinger, Moritz & Kahl, Annelen & Savelsberg, Jonas & Schlecht, Ingmar & Lordan-Perret, Rebecca, 2022. "Optimized market value of alpine solar photovoltaic installations," Renewable Energy, Elsevier, vol. 186(C), pages 878-888.
    • Handle: RePEc:eee:renene:v:186:y:2022:i:c:p:878-888
    DOI: 10.1016/j.renene.2022.01.016
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0960148122000167
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.renene.2022.01.016?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Henriot, Arthur, 2015. "Economic curtailment of intermittent renewable energy sources," Energy Economics, Elsevier, vol. 49(C), pages 370-379.
    2. Winkler, Jenny & Pudlik, Martin & Ragwitz, Mario & Pfluger, Benjamin, 2016. "The market value of renewable electricity – Which factors really matter?," Applied Energy, Elsevier, vol. 184(C), pages 464-481.
    3. Bartlett, Stuart & Dujardin, Jérôme & Kahl, Annelen & Kruyt, Bert & Manso, Pedro & Lehning, Michael, 2018. "Charting the course: A possible route to a fully renewable Swiss power system," Energy, Elsevier, vol. 163(C), pages 942-955.
    4. Kim, James Hyungkwan & Mills, Andrew D. & Wiser, Ryan & Bolinger, Mark & Gorman, Will & Crespo Montañes, Cristina & O'Shaughnessy, Eric, 2021. "Project developer options to enhance the value of solar electricity as solar and storage penetrations increase," Applied Energy, Elsevier, vol. 304(C).
    5. Hirth, Lion & Müller, Simon, 2016. "System-friendly wind power," Energy Economics, Elsevier, vol. 56(C), pages 51-63.
    6. Florian Leuthold & Hannes Weigt & Christian Hirschhausen, 2012. "A Large-Scale Spatial Optimization Model of the European Electricity Market," Networks and Spatial Economics, Springer, vol. 12(1), pages 75-107, March.
    7. Hirth, Lion, 2013. "The market value of variable renewables," Energy Economics, Elsevier, vol. 38(C), pages 218-236.
    8. Vuichard, Pascal & Stauch, Alexander & Wüstenhagen, Rolf, 2021. "Keep it local and low-key: Social acceptance of alpine solar power projects," Renewable and Sustainable Energy Reviews, Elsevier, vol. 138(C).
    9. Zipp, Alexander, 2015. "Revenue prospects of photovoltaic in Germany—Influence opportunities by variation of the plant orientation," Energy Policy, Elsevier, vol. 81(C), pages 86-97.
    10. López Prol, Javier & Steininger, Karl W. & Zilberman, David, 2020. "The cannibalization effect of wind and solar in the California wholesale electricity market," Energy Economics, Elsevier, vol. 85(C).
    11. Eising, Manuel & Hobbie, Hannes & Möst, Dominik, 2020. "Future wind and solar power market values in Germany — Evidence of spatial and technological dependencies?," Energy Economics, Elsevier, vol. 86(C).
    12. Paul L. Joskow, 2011. "Comparing the Costs of Intermittent and Dispatchable Electricity Generating Technologies," American Economic Review, American Economic Association, vol. 101(3), pages 238-241, May.
    13. Bernath, Christiane & Deac, Gerda & Sensfuß, Frank, 2021. "Impact of sector coupling on the market value of renewable energies – A model-based scenario analysis," Applied Energy, Elsevier, vol. 281(C).
    14. Ramteen Sioshansi, 2011. "Increasing the Value of Wind with Energy Storage," The Energy Journal, International Association for Energy Economics, vol. 0(Number 2), pages 1-30.
    15. Engelhorn, Thorsten & Müsgens, Felix, 2018. "How to estimate wind-turbine infeed with incomplete stock data: A general framework with an application to turbine-specific market values in Germany," Energy Economics, Elsevier, vol. 72(C), pages 542-557.
    16. Hartner, Michael & Ortner, André & Hiesl, Albert & Haas, Reinhard, 2015. "East to west – The optimal tilt angle and orientation of photovoltaic panels from an electricity system perspective," Applied Energy, Elsevier, vol. 160(C), pages 94-107.
    17. Lion Hirth, 2013. "The Market Value of Variable Renewables. The Effect of Solar and Wind Power Variability on their Relative Price," RSCAS Working Papers 2013/36, European University Institute.
    18. Pfenninger, Stefan & Staffell, Iain, 2016. "Long-term patterns of European PV output using 30 years of validated hourly reanalysis and satellite data," Energy, Elsevier, vol. 114(C), pages 1251-1265.
    19. Dujardin, Jérôme & Kahl, Annelen & Kruyt, Bert & Bartlett, Stuart & Lehning, Michael, 2017. "Interplay between photovoltaic, wind energy and storage hydropower in a fully renewable Switzerland," Energy, Elsevier, vol. 135(C), pages 513-525.
    20. Ruhnau, Oliver, 2020. "Market-based renewables: How flexible hydrogen electrolyzers stabilize wind and solar market values," EconStor Preprints 227075, ZBW - Leibniz Information Centre for Economics.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Heinisch, Verena & Dujardin, Jérôme & Gabrielli, Paolo & Jain, Pranjal & Lehning, Michael & Sansavini, Giovanni & Sasse, Jan-Philipp & Schaffner, Christian & Schwarz, Marius & Trutnevyte, Evelina, 2023. "Inter-comparison of spatial models for high shares of renewable electricity in Switzerland," Applied Energy, Elsevier, vol. 350(C).
    2. Ye, Anqi & Guan, Bowen & Liu, Xiaohua & Zhang, Tao, 2023. "Using solar energy to achieve near-zero energy buildings in Tibetan Plateau," Renewable Energy, Elsevier, vol. 218(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Eising, Manuel & Hobbie, Hannes & Möst, Dominik, 2020. "Future wind and solar power market values in Germany — Evidence of spatial and technological dependencies?," Energy Economics, Elsevier, vol. 86(C).
    2. Klie, Leo & Madlener, Reinhard, 2022. "Optimal configuration and diversification of wind turbines: A hybrid approach to improve the penetration of wind power," Energy Economics, Elsevier, vol. 105(C).
    3. Brown, T. & Reichenberg, L., 2021. "Decreasing market value of variable renewables can be avoided by policy action," Energy Economics, Elsevier, vol. 100(C).
    4. Bernath, Christiane & Deac, Gerda & Sensfuß, Frank, 2021. "Impact of sector coupling on the market value of renewable energies – A model-based scenario analysis," Applied Energy, Elsevier, vol. 281(C).
    5. Odeh, Rodrigo Pérez & Watts, David, 2019. "Impacts of wind and solar spatial diversification on its market value: A case study of the Chilean electricity market," Renewable and Sustainable Energy Reviews, Elsevier, vol. 111(C), pages 442-461.
    6. Glenk, Gunther & Reichelstein, Stefan, 2021. "Intermittent versus dispatchable power sources: An integrated competitive assessment," ZEW Discussion Papers 21-065, ZEW - Leibniz Centre for European Economic Research.
    7. Ruhnau, Oliver & Hirth, Lion & Praktiknjo, Aaron, 2020. "Heating with wind: Economics of heat pumps and variable renewables," Energy Economics, Elsevier, vol. 92(C).
    8. Zipp, Alexander, 2017. "The marketability of variable renewable energy in liberalized electricity markets – An empirical analysis," Renewable Energy, Elsevier, vol. 113(C), pages 1111-1121.
    9. Klie, Leo & Madlener, Reinhard, 2020. "Concentration Versus Diversification: A Spatial Deployment Approach to Improve the Economics of Wind Power," FCN Working Papers 2/2020, E.ON Energy Research Center, Future Energy Consumer Needs and Behavior (FCN), revised May 2021.
    10. Philipp Beiter & Aubryn Cooperman & Eric Lantz & Tyler Stehly & Matt Shields & Ryan Wiser & Thomas Telsnig & Lena Kitzing & Volker Berkhout & Yuka Kikuchi, 2021. "Wind power costs driven by innovation and experience with further reductions on the horizon," Wiley Interdisciplinary Reviews: Energy and Environment, Wiley Blackwell, vol. 10(5), September.
    11. Kies, Alexander & Schyska, Bruno U. & Bilousova, Mariia & El Sayed, Omar & Jurasz, Jakub & Stoecker, Horst, 2021. "Critical review of renewable generation datasets and their implications for European power system models," Renewable and Sustainable Energy Reviews, Elsevier, vol. 152(C).
    12. Mills, Andrew D. & Wiser, Ryan H., 2015. "Strategies to mitigate declines in the economic value of wind and solar at high penetration in California," Applied Energy, Elsevier, vol. 147(C), pages 269-278.
    13. Winkler, Jenny & Pudlik, Martin & Ragwitz, Mario & Pfluger, Benjamin, 2016. "The market value of renewable electricity – Which factors really matter?," Applied Energy, Elsevier, vol. 184(C), pages 464-481.
    14. Ruhnau, Oliver, 2022. "How flexible electricity demand stabilizes wind and solar market values: The case of hydrogen electrolyzers," Applied Energy, Elsevier, vol. 307(C).
    15. Thomaßen, Georg & Redl, Christian & Bruckner, Thomas, 2022. "Will the energy-only market collapse? On market dynamics in low-carbon electricity systems," Renewable and Sustainable Energy Reviews, Elsevier, vol. 164(C).
    16. Javier L'opez Prol & Wolf-Peter Schill, 2020. "The Economics of Variable Renewables and Electricity Storage," Papers 2012.15371, arXiv.org.
    17. Obermüller, Frank, 2017. "Build Wind Capacities at Windy Locations? Assessment of System Optimal Wind Locations," EWI Working Papers 2017-9, Energiewirtschaftliches Institut an der Universitaet zu Koeln (EWI).
    18. Engelhorn, Thorsten & Müsgens, Felix, 2018. "How to estimate wind-turbine infeed with incomplete stock data: A general framework with an application to turbine-specific market values in Germany," Energy Economics, Elsevier, vol. 72(C), pages 542-557.
    19. Petersen, Claire & Reguant, Mar & Segura, Lola, 2024. "Measuring the impact of wind power and intermittency," Energy Economics, Elsevier, vol. 129(C).
    20. Williams, Olayinka & Green, Richard, 2022. "Electricity storage and market power," Energy Policy, Elsevier, vol. 164(C).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:renene:v:186:y:2022:i:c:p:878-888. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.journals.elsevier.com/renewable-energy .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.