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Solar also during normal workdays . If electricity prices are zero or negative , any electricity exported to the market not locked into longterm fixed PPA contracts has no value . In the future , this could make generating profits more difficult , leading to an unsustainable renewable market . This phenomenon is already occurring more frequently in Europe . If it continues , it could disrupt solar ’ s growth trajectory . To maintain the reduction of energy generation from fossil fuels , we must find a solution .
The rapid deployment and low generation costs of solar PV make it a game-changer in the energy transition , as it can meet the energy needs of individual businesses and be deployed in large-scale projects . Market prices need to be advantageous to encourage continued investment , and price cannibalization could threaten solar power ’ s market position . To future-proof renewable generation assets , and protect against negative market prices , battery technology must be an essential part of every solar power system . Adding batteries means that the energy generated can be stored , used or sold later when prices are higher .
Market pricing
To maintain a functional renewable energy market , it ’ s crucial to recognize that the typical current fixed pricing model for solar PV generation , such as fixed PPAs , will have to change and that fluctuating and above zero prices in the electricity market are essential . Market prices that remain positive allow investors to recoup their upfront capital costs and generate profits , ultimately incentivizing further investment in solar projects .
Remunerating solar PV based on variable market pricing with a balance of localized and national storage would limit the volatile electricity market prices we ’ re seeing today . It would also allow solar power to turn a profit , compete with fossil fuels for power generation and fund the expansion of renewable energy infrastructure , leading to a point where solar power overtakes fossil fuels as the dominant energy source .
Gas ’ final role
Over the next 25 years , renewable energy will play the leading role in the energy transition to phase out fossil fuels . The remaining question is , how much power from an alternative source – whether nuclear , gas or green hydrogen – is needed to support renewables during times of ‘ dunkelflaute ’, where there is limited wind and sun to generate power ?
Although gas may play a small role in the future of energy , natural gas alongside CCUS is unlikely as it is too expensive , especially for a long-term solution . An analysis by Aurora Energy Research for Renewable UK found that bill-payers could save £ 68 a year by 2035 with an energy system dominated by offshore wind , as opposed to gas with or without carbon capture and storage . Whatever the final fuel mix looks like , by 2050 , power generation will be driven by battery storage and renewable energy rather than low-carbon gas . ■
For a list of the sources used in this article , please contact the editor .
Stephan Marty wattstor . com
Stephan Marty is CEO of Wattstor . Wattstor designs , builds , pays for , operates and optimizes onsite renewable energy systems , including renewable assets , battery storage and a powerful EMS . It works directly with commercial and industrial customers , their suppliers and utility partners , and with solar installers to 100 percent fund solar and battery project costs , so they get the electricity they generate at lower than grid cost .
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