Full Title: Solar-Plus-Storage 101: Hybridizing Market Dynamics and 10-Year Projections
Author(s): S&P Global
Publisher(s): S&P Global
Publication Date: January 21, 2025
Full Text: Download Resource
Description (excerpt):
Solar-plus-storage systems are fast becoming the preferred solution to address the primary interrelated challenges posed by the rapidly advancing renewable energy revolution — namely, intermittency and inconsistencies between maximum generation and peak load. These flexible systems not only help smooth out energy supply and demand dynamics, thereby bolstering reliability, but they also offer photovoltaic plants additional revenue streams in the form of capacity payments and arbitrage.
Utility-scale solar capacity is closing the gap with the wind generation fleet in the US, totaling nearly 120 GW compared to approximately 155 GW for wind. However, most of that solar capacity — approximately 93 GW — is in stand-alone projects. Furthermore, eight states account for about two-thirds of the stand-alone total. Signs of market saturation are becoming increasingly evident in this sector, with high solar generation during daytime hours causing energy prices to plummet, undercutting revenues for photovoltaic generators.
Additionally, curtailment is rising as plant operators must manage the mismatch between peak solar generation, which generally occurs around noon, and peak load hour, which takes place late afternoon or early evening. As of Sept. 30, 2024, both the California ISO and the Electric Reliability Council of Texas Inc., the leading US independent system operators for grid-scale solar capacity, had already set new records for annual solar curtailment — with three months to go before year-end.