Paraguay, 25 October 2016

1. SimposioSimposio
“Ciencia, Technologia, Educacion, Innovacion”“Ciencia, Technologia, Educacion, Innovacion”
Asuncion, ParaguayAsuncion, Paraguay
Energias RenovablesEnergias Renovables: Renewables: Renewables
Jean-Michel Glachant & Florence School instructorsJean-Michel Glachant & Florence School instructors
Director Florence School of Regulation
European University Institute (Florence, Italy)

2. Overview
• 1- Renewables, definition, & generation costs
• 2- Dynamic costs trends for renewables
• 3- Integration of renewables and system costs
• 4- Power shift to system decentralization
Thanks to Florence School instructors:
L.Meeus, A.Pototschnig, M.Ragwitz, N. Rossetto
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3. Overview
• 1- Renewables, definition, & generation
costs
• 2- Dynamic costs trends for renewables
• 3- Integration of renewables and system costs
• 4- Power shift to system decentralization
3

4. 4
• Not all low carbon emission sources of energy are RES (e.g. nuclear)
and the exploitation of RES is not necessarily devoid of an
environmental impact (e.g. burning of traditional biomass, large hydro,
deforestation, etc.)
• In the EU there is a specific legal definition of RES: (art. 2, Dir.
2009728/EC).
• Biomass is subsequently defined as:
“the biodegradable fraction of products, waste and residues from
biological origin from agriculture (including vegetal and animal
substances), forestry and related industries including fisheries and
aquaculture, as well as the biodegradable fraction of industrial and
municipal waste (Ibid.)”
Renewables: definition

5. 5
Renewables in the EU

6. • 2010-2014 RES compete with
conventional plants
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Source:
IRENA
(2015).

7. 7
Projects commissioned in 2014
Source:
IEA
(2015).

8. 8

9. 9
Source: IEA (2015).

10. Overview
• 1- Renewables, definition, & generation costs
• 2- Dynamic costs trends for renewables
• 3- Integration of renewables and system costs
• 4- Power shift to system decentralization
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11. 11
Solar “Utility” price dynamics 2006-15

12. 12
PV dynamics 1979-2015

13. 13
Wind dynamics 1981-2005

14. 14

15. 15
PV Module: Market Price & Installed Capacity (2000 –
2014)

16. 16
Looking forward: 2014-2025 seen by IRENA

17. Overview
• 1- Renewables, definition, & generation costs
• 2- Dynamic costs trends for renewables
• 3- Integration of renewables and system
costs
• 4- Power shift to system decentralization
17

18. 18
Solar “Utility” price dynamics: Logic?

19. 19
Source:
IEA/NEA (2015).
PV & Wind Generation costs depending of
discount rate: 3% to 10%

20. • LCOE methodology drawbacks and just as a starting point for cost of
generating electricity with a specific technology.
• LCOE = stand-alone generating costs but not *integration cost of that
power plant into the system, and **value of the electricity generated
• Holistic approach needed, especially for guiding public policies.
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From Generation costs to “Holistic
Approach”

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25. 25

26. 26

27. • integration of RES positive impacts (flexibility or integration options),, if
their generating profile is coherent with load profile
or if generation is close to the load (distributed generation) and energy
losses/grid congestions are reduced. These benefits reduce the
integration cost.
• An example is solar PV working during sunny and hot summer afternoons.
• When you also consider the environmental and health costs of
conventional generation, the “competitiveness” of RES less much
reduced.
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28. 28
Source: IEA/NEA (2015).

29. 29

30. Overview
• 1- Renewables, definition, & generation costs
• 2- Dynamic costs trends for renewables
• 3- Integration of renewables and system costs
• 4- Power shift to system decentralization
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34. How to conclude?
# To be seen in 2016-30…
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36. www.florence-school.eu 36
Thank you for your attention
Email contact: jean-michel.glachant@eui.eu
Follow me on Twitter: @JMGlachant
already> 21 000 tweets
Read the IAEE Journal I was chief-editor of:
EEEP “Economics of Energy & Environmental Policy”
My web site: http://www.florence-school.eu