Storage Requirements and Costs of Shaping Renewable Energy Toward Grid Decarbonization

Abstract

Summary Deeply decarbonizing electricity production will likely require that low-carbon sources meet energy demand throughout days, years, and decades. Wind and solar energy are possible low-carbon options, but resource variability can limit their reliability. Storage can help address this challenge by shaping intermittent resources into desired output profiles. But can solar and wind energy with storage cost-competitively fulfill this role? How do diverse storage technologies compare? We address these questions by analyzing systems that combine wind and solar energy with storage to meet various demand profiles. We estimate that energy storage capacity costs below a roughly $20/kWh target would allow a wind-solar mix to provide cost-competitive baseload electricity in resource-abundant locations such as Texas and Arizona. Relaxing reliability constraints by allowing for a few percent of downtime hours raises storage cost targets considerably, but would require supplemental technologies. Finally, we discuss storage technologies that could reach the estimated cost targets.