Will large-scale #batteries store the energy when it is cheap and sell it back when expensive? My short answer is no.
A short thread. (1/10)
Volatility is on the rise with renewables, especially solar. Just check what happened last week in Europe. Very low and negative prices all other Europe for lunch. (2/10)
Solar was clearly one of the main factors. The residual load in Germany getting close to zero (negative in the Netherlands). (3/10)
So, we are at the age of the canyon curve... (4/10)
Should we install large-scale batteries to store excess energy and gives it back during the evening?
No, it is far from making economic sense today (happy to discuss assumptions). Basically, one spread per day is not enough to justify investing in large-scale batteries. (5/10)
I am not the only one to say that, I believe. @iain_staffell (6/10)
Or check the calculated revenues in this great study (sciencedirect.com/science/articl…). Far from justifying investing in large-scale batteries. (7/10)
Should we do any large-scale batteries? Yes, we should! But not for energy arbitrage...but for power reserves, very-short term portfolio management (balancing, intraday), renewables integration, grid congestion, ... Just not to store a lot of energy and give it back later. (8/10)
But probably the true potential is with Electric Vehicles. The stored energy would be much larger...of course, these batteries are not primarily made for that, so the potential is much lower. Still, great potential...if we have incitative tariffs. (9/10) @RWTH
If you like this thread, you can follow my work here: (10/10)
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Solar Capture Rate is defined as the weighted average of solar production by the (day-ahead) market prices. It gives the price that solar would get if sold on the market.
A tour of Europe of the last few years and some reflections. 🧵
1/10
As solar pushes market price down and as solar is concentrated on few hours (especially if you are from the Equateur), the effect can be quite fast.
We have several countries that have a solar capacity equal of higher than load in afternoon (Germany, the Netherlands).
2/10
Obviously, when it is clear blue sky, the market prices are zero or negative.
Let's start with Germany.
In red, we see that 2024 was really lower than other years.
A capture rate of 49% (May 2024) means that solar would have got only 50% of average market price.
What's the marginal cost of wind and solar ? We tend to say that it is zero, but is that correct?
At what price should they bid?
A thread 🧵to introduce the reflection (to be explored more)
(Idea from a colleague)
1/8
First, let's skip all the cases where wind and solar are bidding at negative prices because of the support schemes (whatever it is). Let's consider a wind and solar plant that is fully bidding on day-ahead markets
What should they bid ?
2/
As you may know, day-ahead markets are pay-as-clear. If your cost is zero to produce 1 MWh, there is no reason not to bid at 0. Any cleared price higher would be given to you.