Implications of variations in renewable cost projections for electric sector decarbonization in the United States

Abstract

Summary: The costs of wind and solar technologies have dropped rapidly, but unknowns about technological change and emissions policies create uncertainty about future deployment. We compare projections of U.S. wind and solar costs across published studies and use an energy systems model to evaluate how these reductions could alter electric sector planning decisions and costs under deep decarbonization. Model results indicate that wind and solar are the largest generation resources for many scenarios and regions, but shares depend on assumptions about costs, policy targets, and policy timeframes (spanning 14% to 67% of national generation by 2035). Renewables cost reductions lower decarbonization costs and reduce projections for nuclear and carbon-captured-equipped generation, but policy decisions have a larger influence on future trajectories. Lower wind and solar costs have more limited impacts on deployment of carbon removal technologies and the capacity of clean firm technologies in reaching net-zero emissions in the electric sector.

Keywords

• Energy resources
• Energy policy
• Energy management
• Energy Modeling