Electrical engineering

Physics

Engineering

Mathematical analysis

Environmental economics

Renewable resource

Business

Variable cost

Economics

Power (physics)

Microeconomics

Natural resource economics

Variable (mathematics)

Renewable energy

Electricity

Variable renewable energy

Mathematics

Environmental science

Quantum mechanics

Wind power

Electric power system

Nature Energy

The impact of variable renewable energy (VRE) sources on an electricity system depends on technological characteristics, demand, regulatory practices and renewable resources. The costs of integrating wind or solar power into electricity networks have been debated for decades yet remain controversial and often misunderstood. Here we undertake a systematic review of the international evidence on the cost and impact of integrating wind and solar to provide policymakers with evidence to inform strategic choices about which technologies to support. We find a wide range of costs across the literature that depend largely on the price and availability of flexible system operation. Costs are small at low penetrations of VRE and can even be negative. Data are scarce at high penetrations, but show that the range widens. Nonetheless, VRE sources can be a key part of a least-cost route to decarbonization. As the cost of variable renewable energy generation has fallen and its proportion in power mixes has increased, discussion of its integration costs has intensified. Heptonstall and Gross systematically review the literature on these costs and asses the range of impacts it is shown to have.

A systematic review of the costs and impacts of integrating variable renewables into power grids