Cost optimal share of wind power, PV and batteries

A chronological multi-area generation planning model is used to investigate the influence of low-cost batteries on the cost-optimal share of wind power and photovoltaics (PV) under varying assumptions about their future investment costs. The analysis is performed in two different geographic locations that have a large difference in the solar resource. The results from around 400 scenario runs demonstrate to what extent lower investment costs mitigate the resource variability. In this regard, PV is more sensitive than wind power. Given the assumptions utilized, the model starts to invests in PV at much higher cost levels in Iberia (~1050 /kW) than in Northern Europe (~400 /kW). Furthermore, in Iberia batteries benefit PV strongly (already at 300 /kWh) while in Northern Europe batteries are not as relevant, since PV has a strong seasonal variation that cannot be economically mitigated with batteries and the region already has high amounts of flexible reservoir hydro power