Integration Costs Revisited – An economic framework for wind and solar variability

  title={Integration Costs Revisited – An economic framework for wind and solar variability},
  author={Lion Hirth and Falko Ueckerdt and Ottmar Edenhofer},
The integration of wind and solar generators into power systems causes “integration costs” – for grids, balancing services, more flexible operation of thermal plants, and reduced utilization of the capital stock embodied in infrastructure, among other things. This paper proposes a framework to analyze and quantify these costs. We propose a definition of integration costs based on the marginal economic value of electricity, or market value – as such a definition can be more easily used in… CONTINUE READING
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