An Arena funded study looked at dispatchable renewable costs eg solar plus battery or solar plus pumped hydro. Outcomes of the study were current capital costs, a view on what drives those costs, and an estimate of the LCOE. Results are compared for a variety of technologies with batteries having the advantage at the short end and other technologies at the longer end.
Many dispatchable renewable technologies take years to plan and build and the current pool market does not provide a price signal to facilitate their development. An alternative, more planned approach to new facilities is outlined and the benefits in terms of building supply before existing generators exit the system, and lower overall costs, lower emissions, and lower reliability risks is presented.
3 key takeaways from this presentation:
1. A variety of dispatchable renewables technologies are closely cost competitive, based on an ARENA study I was a co-author of
2. Price signals required to introduce these technologies may come too late with the current market design
3. Reverse auctions are likely to produce better outcomes with lower costs for consumers.