The capacity factor of the renewable energies that are emerging in the market are well below the traditional of hydroelectricity of 60%. Solar, for each kW installed, produces an average of 20%. Wind power 40%.
The technical solution is having back up power plants that can be dispatched whenever necessary.
In reality, it is equivalent to the need for additional investments, which are associated with its amortization and therefore add up important costs.
The proposal that I present for consideration in the deregulated power markets is: clients to constitute a portfolio of sources to “close their necessary volume”. And not like the current system, in which a prorated amount is collectively paid for. It means for example that contracting all the required volume form a wind farm – there is no need to “worry” about the intermittence.
Source: energycentral
