Wärtsilä: Adoption of renewables to reduce electricity production costs

The ‘Front-Loading Net Zero’ report states that electricity production costs could be reduced by up to 50% by 2050 if countries and states adopt 100% renewable systems faster than currently planned. Significant cost reductions can be achieved by front-loading the deployment of renewables, mainly wind and solar photovoltaic (PV), and by utilising the technologies needed to balance their inherent intermittency, such as energy storage and thermal balancing power plants. The report indicates that carbon neutral systems can provide cheaper electricity compared to current fossil fuel-based systems.

The report models Germany, India, and California, US – three markets with vastly different socio-economic dynamics, energy systems, and challenges, demonstrating the cost-optimal path towards 100% renewable power systems in each region.

It reveals that by accelerating 100% renewable power systems, substantial benefits are unlocked:

• Accelerating renewables to become main source of electricity drives down fossil fuel usage (i.e. coal and gas), significantly reducing the overall levelised cost of electricity. India can halve its electricity costs by 2050, while California and Germany can cut costs by 17% and 8% by 2040 respectively.
• Coal-fired power – 70% of generation in India and 33% in Germany – can be securely replaced by renewables and flexibility from energy storage and thermal balancing power plants as early as 2040.
• Colossal carbon savings can be made in the short term, enabling national climate targets to be achieved. Germany can avoid 422 million t of CO₂ by 2040 by accelerating its coal phase-out. This would help achieve its 65% reduction target (compared to 1990 levels) set for 2030.
• Renewables as the main source of primary energy for electricity generation can drive energy independence. For example, Germany could avoid the need to import 550 TWh of power by accelerating the phase-out of coal.

The clear, deliverable pathways to 100% renewables modelled in these vastly different energy systems show that affordable net-zero economies are in reach for every country at COP26. In addition to the deep dive models, the report's chapters focusing on Australia, Chile and the UK’s energy transitions underline that the technologies needed to achieve 100% renewable power systems are already available at scale around the world. The report shows the once-in-a-generation opportunity to dramatically scale-up renewable generation and energy storage to bridge the gap to 100% renewable electricity without adding to the cost of power.

For more news and technical articles from the global renewable industry, read the latest issue of Energy Global magazine.

Energy Global's Summer 2021 issue

The Summer issue of Energy Global features a varied spectrum of in-depth technical articles detailing recent projects, future projections, and technological advancements in the renewables sector, from companies including CEWEP, Enel Green Power, Turboden S.p.A., Cornwall Insight, and more.

Read the article online at: https://www.energyglobal.com/special-reports/08102021/wrtsil-adoption-of-renewables-to-reduce-electricity-production-costs/