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Power price stability and the insurance value of renewable technologies
To understand if renewables stabilize or destabilize electricity prices, we simulate European power markets as projected by the National Energy and Climate Plans for 2030 but replicating the historical variability in electricity demand, the prices of fossil fuels and weather. We propose a β-sensitivity metric, defined as the projected increase in the average annual price of electricity when the price of natural gas increases by 1 euro. We show that annual power prices spikes would be more moderate because the β-sensitivity would fall from 1.4 euros to 1 euro. Deployment of solar photovoltaic and wind technologies exceeding 30% of the 2030 target would lower it further, below 0.5 euros. Our framework shows that this stabilization of prices would produce social welfare gains, that is, we find an insurance value of renewables. Because market mechanisms do not internalize this value, we argue that it should be explicitly considered in energy policy decisions.
Management practices and manufacturing firm responses to a randomized energy audit
Increasing the efficiency of industrial energy use is widely considered important for mitigating climate change. We randomize assignment of an energy audit intervention aimed at improving energy efficiency and reducing energy expenditures of small- and medium-sized metal processing firms in Shandong Province, China, and examine impacts on energy outcomes and interactions with firms’ management practices. We find that the intervention reduced firms’ unit cost of electricity by 8% on average. Firms with more developed structured management practices showed higher rates of recommendation adoption. However, the post-intervention electricity unit cost reduction is larger in firms with less developed practices, primarily driven by a single recommendation that corrected managers’ inaccurate reporting of transformer usage at baseline, lowering their electricity costs. By closing management-associated gaps in awareness of energy expenditures, energy audit programmes may reduce a firm’s unit cost of energy but have an ambiguous impact on energy use and climate change.
Mobilizing power quality and reliability measurements for electricity equity and justice in Africa
In sub-Saharan Africa, urban electricity inequities manifesting as poor power quality and reliability (PQR) are prevalent. Yet, granular PQR data and frameworks for assessing PQR inequities and guiding equitable electricity interventions remain sparse. To address this gap, we present a conceptual framework that leverages energy justice, capability and multidimensional poverty theories alongside concepts relating to power systems to quantify PQR inequities in sub-Saharan Africa. To demonstrate our framework and using 1 year’s worth of remotely sensed PQR data from Accra, Ghana, we assessed the distributive scale of PQR inequities, explored how multidimensional poverty exacerbates these inequities and examined the impact of PQR on households’ domestic capabilities. We found wider patterns of PQR inequities and a link between poor PQR and neighbourhoods with higher multidimensional poverty. We conclude that using remotely sensed data combined with justice and capability frameworks offers a powerful method for revealing PQR inequities and driving sustainable energy transitions.
Diversity of biomass usage pathways to achieve emissions targets in the European energy system
Biomass is a versatile renewable energy source with applications across the energy system, but it is a limited resource and its usage needs prioritization. We use a sector-coupled European energy system model to explore near-optimal solutions for achieving emissions targets. We find that provision of biogenic carbon has higher value than bioenergy provision. Energy system costs increase by 20% if biomass is excluded at a net-negative (−110%) emissions target and by 14% at a net-zero target. Dispatchable bioelectricity covering ~1% of total electricity generation strengthens supply reliability. Otherwise, it is not crucial in which sector biomass is used, if combined with carbon capture to enable negative emissions and feedstock for e-fuel production. A shortage of renewable electricity or hydrogen supply primarily increases the value of using biomass for fuel production. Results are sensitive to upstream emissions of biomass, carbon sequestration capacity and costs of direct air capture.
Demand-side strategies enable rapid and deep cuts in buildings and transport emissions to 2050
Decarbonization of energy-using sectors is essential for tackling climate change. We use an ensemble of global integrated assessment models to assess CO2 emissions reduction potentials in buildings and transport, accounting for system interactions. We focus on three intervention strategies with distinct emphases: reducing or changing activity, improving technological efficiency and electrifying energy end use. We find that these strategies can reduce emissions by 51–85% in buildings and 37–91% in transport by 2050 relative to a current policies scenario (ranges indicate model variability). Electrification has the largest potential for direct emissions reductions in both sectors. Interactions between the policies and measures that comprise the three strategies have a modest overall effect on mitigation potentials. However, combining different strategies is strongly beneficial from an energy system perspective as lower electricity demand reduces the need for costly supply-side investments and infrastructure.
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