The cost to generate electricity from wind and solar has significantly declined in recent years – in fact, the generation costs of wind energy and solar PV is now below that of conventional power in many parts of the world. Yet, wind and solar power plants are different from conventional power plants in several respects: their output is variable, location-specific and subject to forecast errors. High shares of wind and solar power can therefore lead to additional costs, so-called integration costs, aside from building the power plants themselves.
The proper measurement of these "integration costs" is a hotly debated subject in academic and policymaking circles. The definition and quantification of these costs can therefore differ significantly.
In order to shed more light on this controversial debate, Agora Energiewende published a background paper, based on several discussions with experts and on our own analysis.
The main results of this background paper were presented during this webinar, including a Q&A session.
