Impact of High Solar and Energy Storage Levels on Wholesale Power Markets
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Impact of High Solar and Energy Storage Levels on Wholesale Power Markets

  • Impact of solar and storage investment on wholesale power pricing, flexible capacity needs, system curtailment, and emissions
  • Modeled results for multiple California ISO scenarios
  • Suggested next steps for storage research

How could energy storage impact wholesale power prices?

With continuing solar price declines, higher expected prices for natural gas, and proposed greenhouse gas emissions allowance regulations, solar energy could begin to more significantly offset natural gas and coal generation in the Western Electricity Coordinating Council (WECC) Interconnection. As policymakers debate the merits of increasing the California Renewable Portfolio Standard to 50 percent by 2030, it is unclear how solar and energy storage will impact wholesale electricity prices.

What’s in the Report?

To help address this important question, Black & Veatch and the Smart Electric Power Alliance* (SEPA) modeled the solar and energy storage impact on wholesale electricity prices in the CAISO market. Through a detailed and proprietary modeling approach, the report discusses the results of different energy storage case scenarios, and identifies next steps for additional areas for research and focus.

*formerly the Solar Electric Power Association