ATA Insights Newsletter 10/09/21

Hi,

I hope all is well at your end.

There is a lot going on in the world of renewables, this week I’d like us to focus on a renewable energy auction that was announced in Chile. This auction could have global repercussions for renewable energy. Please, bear with me as I try to explain why ??

?This week, Chile awarded bids for renewable energy at historically low prices, with the average bid at USD 23.78 per MWh, and the lowest bid for 24 hour supply at USD 14.84 per MWh for 15 years. Although the auction was technologically neutral, it is assumed that the lowest bid for 24-hour energy supply was awarded to a PV system coupled with storage.

The award price has raised eyebrows in the industry, as it is much lower than most think feasible for a dispatchable renewable energy project. Could dispatchable renewable energy projects actually be delivered and make a profit at such prices? If the answer is yes, then there is no problem. If the answer is no, we need to question whether the market is using the right metrics to measure the value of dispatchable renewable energy and create appropriate reward mechanisms. I suppose we’ll have to wait and see.

?When it comes to assessing the lifetime cost of renewable energy, the levelised cost of energy (LCOE) is regarded as the gold standard. However, some have made the point that cost and value are not the same thing. Relying on metrics that only consider cost, could lead to too many PV and Wind plants. They are the cheapest technologies, and essential to decarbonising power generation, but they are also variable so deploying too many of them is likely to lead to high levels of curtailment.

To achieve a low carbon system, you need to reward dispatchable technologies. Perhaps, it’s time to deploy new metrics that consider the value of dispatchable technologies to the electricity system as a whole. If you’re interested in finding more about this, NREL has published some papers on this subject (such as this one).

?Taking about papers, the Climate Investment Funds has just published the report Transformational Change in Concentrated Solar Power. ATA Insights contributed significantly to this paper, so I’d appreciate if you could read and let me know your thoughts ??

RENEWABLES AROUND THE WORLD

Africa:

??South Africa to announce preferred bidder for 2,600MW renewable energy project. Read on

Americas:

??Argentina: Machine learning and A.I. increase Wind power generation by more than 2%. Read on

?? Chile: World record low bid of 39,99/MWh for Concentrated Solar Power in latest auction. More info

? Chile supply call awards record low power prices. The average price awarded was US$23.78/MWh, a historical low. Read on

??USA: From 4% to 45%: Energy Department Lays Out Ambitious Blueprint for Solar Power. More info

?Asia:

?? China: Three 100 MW concentrated solar power (CSP) auctions announced in China. Find out more

?? India set to deploy between 50 and 120 GW of Energy Storage Capacity by 2030 and up to 800 GW by 2050, according to NREL study. More info

?Did Indonesia Dodge a Bullet With Its Renewable Energy Feed-in-Tariffs?. Read on

Europe:

?? Europe Faces Energy Price Shock With Gas and Power at Records. Read on

??EU spot market module prices: PV prices high today, higher tomorrow. More info

?Renewables surge ‘not fast enough for net zero’. Full article

RENEWABLE HYDROGEN

?? Germany eyes world's cheapest green hydrogen from Namibia amid global 'race for best sites'. More info

??? Hydrogen industry must clean itself up before expanding into new uses, report finds. Read on

??? Reclaiming Hydrogen for a Renewable Future: Distinguishing Fossil Fuel Industry Spin from Zero-Emission Solutions. More info

??? ArcelorMittal to get EUR 55m from German govt for hydrogen-powered steel. Learn more

?A round of applause for our sponsors ?? GoodWe, PV Hardware, SQM, SunPower and Anávo???, without them this newsletter wouldn’t be possible. Would you consider becoming a sponsor? Hit the reply button and ask me about the sponsorship options available.

?? Announcement:

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If you’re interested in attending Renmad Hydrogen write back to me “Count me in!” and I’ll offer you an exclusive discount of 10% off.

That’s all for this newsletter. I hope you enjoyed this renewable energy digest ??