Start-up costs of thermal power plants in markets with increasing shares of variable renewable generation

Wolf-Peter Schill, Michael Pahle and Christian Gambardella
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Michael Pahle: Potsdam Institute for Climate Impact Research (PIK)
Christian Gambardella: Potsdam Institute for Climate Impact Research (PIK)

Nature Energy, 2017, vol. 2, issue 6, 1-6

Abstract: Abstract The emerging literature on power markets with high shares of variable renewable energy sources suggests that the costs of more frequent start-ups of thermal power plants may become an increasing concern. Here we investigate how this develops in Germany, where the share of variable renewables is expected to grow from 14% in 2013 to 34% in 2030. We show that the overall number of start-ups grows by 81%, while respective costs increase by 119% in this period. Related to variable renewables’ production, start-up costs increase by a mere €0.70 per additional megawatt hour. While the expansion of variable renewables alone would increase start-up costs, more flexible biomass power plants and additional power storage have counteracting effects. Yet changes in reserve provision and fuel prices increase start-up costs again. The relevance of start-up costs may grow further under continued renewable expansion, but could be mitigated by increasing system flexibility.

Date: 2017
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DOI: 10.1038/nenergy.2017.50

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