Hello dear readers,
Today in the world of solar, we’re going to discuss a topic that is gaining attention and relevance in recent years – curtailment. While this term might seem complex, it is pretty straightforward and crucial for understanding the dynamics of not only solar companies, but also the aptness of solar panels for your home.
Curtailment, simply put, is when excess power generation is wasted in some markets. This often happens when the share of intermittent-generation renewable energy sources like solar is increasing.
The concept of curtailment isn’t troublesome when the volume is small. Why? Because most jurisdictions offer “take-or-pay” contracts, which protect solar project owners from losses due to curtailed electricity output. And this, my friends, is good news for the lay man interested in a solar array for home.
However, when curtailment increases, problems begin to emerge. Even for solar companies, larger volumes of curtailment can undermine the economics of new solar projects, thus boosting investment risk. The harsh reality is that the uncertainty of the volume that could be curtailed increases the cost of capital for solar projects – thereby exerting pressure on the cost of solar. Plus, the public perception that solar output is being ‘wasted’ could even erode public support for further solar usage.
Let’s take some examples: In Chile, the US, and Australia, curtailment is steadily on the rise. A major reason behind this rising curtailment is the lack of flexibility in the power system. The remedy lies in the policy sector – curtailment can be significantly reduced with appropriate policies. These policies could include reducing the must-run hours of fossil-fuel-based power plants, improving both demand and solar output forecasting, and introducing combined procurement of solar-plus-storage systems, to name a few.
The goal of these actions is to increase the flexibility and responsiveness of power demand. Inviting new business models like virtual power plants and aggregators, plus introducing dynamic electricity pricing could further reduce curtailment.
Importantly, we must remember that curtailment isn’t universally negative. It could contribute to power system flexibility that could be activated easily to maintain system stability. Interestingly, sometimes it might be less expensive for solar project operators to curtail PV output occasionally rather than constructing large-scale energy storage or power grids just to be sure that solar output is never curtailed.
In conclusion, with the share of solar increasing everywhere, a wider discussion on curtailment, especially in technical and economic terms, is essential. As our world charges towards deploying further solar power, whether in the form of solar companies offering more services, or installing solar panels for your home, this debate will only increase in urgency and importance. The road towards a sustainable and clean future is riddled with complexities, and understanding them is vital to navigate wisely.
Stay tuned to this space for more discussions around solar energy, solar companies, and the prospect of a personalized solar array for your home.
Until next time, keep harnessing the power of the sun!
Original Articlehttps://pv-magazine-usa.com/2024/07/05/time-to-talk-solar-curtailment/
