Blog

7 Nov

Report outlines low costs of integrating solar into UK power system

A new report has recently been released by Aurora Energy Research at the STA’s ‘Smart Power’ event at the Conservative party conference, quantifying the cost of integrating solar into the UK power market. The report shows results of today’s market as well as in a 2030 scenario where solar would provide over 10% of annual UK electricity. Currently, over half a million homes in the UK have solar panels installed on their roofs, and it is anticipated that by 2020, this number should go up to 10 million if the country is to fulfill its renewable energy potential.

The results of the report show that in today’s market the cost of integrating solar into the power system would only be negligible at £1.30 per MWh. The report states that more than tripling solar generation to 40GW (over 10% of annual UK electricity) would increase managing variability costs modestly, leading to a maximum of £6 – £7 per MWh.

Paul Barwell, chief executive of the STA, said: “The tremendous growth in local, clean generation has challenged the old power supply model, yet Ministers can be reassured that the rapid expansion in solar power over recent years has been absorbed efficiently and affordably by the system”, as the STA continued to say that this clarity on the costs of integrating large volumes of solar supports its and other analysts’ expectation that solar can the lowest cost form of energy in the 2020’s.

Smaller Costs, Bigger Benefits

The model highlights the point that integrating solar into a smarter, more flexible power system delivers more benefits than costs to the system. The report also evaluates the portfolio effort of combining solar and wind in the energy system. Following the pathway set out by the Committee on Climate Change, the modeled scenario mixes consistent with the UK’s 2030 carbon budgets. This requires 40GW of solar and 45GW of wind, enough to power 55% of the UK’s electricity system. In 2030.

Angus MacNeil MP, chair of the Common’s Energy and Climate Change Committee, welcomes the report, saying: “This research puts numbers and maths behind the variability of solar power. It gives a concrete understanding of what solar has to offer compared to other technologies. Combined with reducing capital costs, solar is going to be as cheap a source of power as you’ll find anywhere.”