Falling like dominos – Europe’s renewable energy records continue to topple
On 24 May, EU achieved a new renewable generation milestone with 55% of all electricity supply coming from clean sources such as wind, solar and hydro.
Clocking these impressive figures across the continent before the longer and sunnier days of Summer is a fantastic milestone that many thought we wouldn’t achieve for another 10 years.
This has provided a rare opportunity to learn how our electricity networks can manage increased amount of clean generation, ultimately driving us closer to 100% renewable energy.
Pan-European Achievement
The data, provided by our Wärtsilä Energy Transition Lab, shows that every country across the continent is seeing renewables playing an greater role and accelerating the transition towards 100% renewable energy systems.
Germany’s fuel mix, for instance, was 58% renewable on average in May, while in the UK it was just under half (48%). This is a year on year increase of 8% and 10% respectively.
Further south, on 30 April, Spain generated three quarters (74%) of its power from renewable sources. This is a significant increase when compared to the annual average of just over half (51%).
The COVID-19 effect
Just a few months ago, not many of us in Europe’s energy sector would have thought we would achieve these milestones in 2020.
COVID-19 has undoubtedly been a huge factor. The lockdowns across Europe have resulted in a 10% drop in energy demand on average, but renewable energy supply isn’t slowing. In fact, quite the opposite is happening. We’ve enjoyed a series of sunny and windy days that are enabling renewable power to make up around half of generation on average since lockdown – a 9% increase on the same period last year.
End of inflexible genertion?
What happens when the sun doesn’t shine, and the wind doesn’t blow? Is a question I expect most of us have heard. Those asking predicted unreliable power networks marred by common supply issues and black outs.
Fortunately, our energy systems have defied the doubters and kept the lights on. As a result, Europe’s energy system was 20% less carbon intensive in May 2020 compared to May 2019.
Flexible power assets, such as energy storage and flexible gas power plants, have played a significant role in this success. Energy storage can help by ‘charging’ when there is surplus supply, and exporting when required, while flexible generation can quickly dispatch or turn down as required.
The flexibility in Europe’s power markets have proved invaluable to support more renewable energy over lockdown, but the markets have been crying out for more. This is apparent through negative pricing, which has been a common occurrence on sunny and windy days.
On certain days, Germany has been forced to sell surplus power for as low as -€80 per MWh to countries like Norway that can use flexible assets to benefit from this pricing.
Countries like Germany now have a clear incentive to dramatically increase their ability to flex and make room for renewable power. Making these positive investment decisions now will be essential if we are to achieve a net-zero energy system across Europe in the coming decades.
Learning from COVID-19
During the huge difficulties caused by this pandemic, we have been presented with a unique opportunity to learn about how we can tackle the next big challenge – climate change.
The share of renewables in Europe has reached levels not expected for another 10 years due to the crisis. It has shown what is possible with our current energy systems and offered us a unique opportunity to understand the measures that need to be put in place to accelerate the transition to 100% renewable energy.
We must now capitalise on this rare glimpse into the future and use it to build back a cleaner and more flexible energy system.
If you’re interested in hearing more, I’m joining a webinar with my colleague Björn Ullbro and guest speaker Stefan Lechtenböhmer to delve further into the above and discuss questions like:
· What is the role of flexible gas and nuclear in the future system?
· Could countries like Germany and Spain be enjoying an even higher share of renewables?
· Is this the end of inflexible generation and baseload power?
Register here The End of Inflexible Generation? and listen in this Thursday 11 June at 13:00 EEST.
By Matti Rautkivi, Director of Strategy and Business Development at Wärtsilä Energy Group
Strategy & Business Development Director 🚀
3yInteresting. In France, energy consumption decreased by about 15 to 20%. Renewables and nuke with lower production costs have been dispatched in priority, this triggered a decrease of 50-55 €/MWh in January to about 20 €/MWh since start of Covid-19 lockdown. Also, because network cost is linked to kWh transported, a decrease of 10% energy consumption could result in a 5% increase of tariff for consumers!
Open for Accounting related. Opinions expressed are personal.
3yAs much as there have been doubt and claims about the grid not being stable and operative with over 50% renewables, once again proven not to be true.
Offshore Wind Business Development
3yThe need for "baseload generation capacity" is a myth. Yes, you will always have baseload consumption at the bottom of your load pattern - but there's no reason why it couldn't be covered by a clever combination of mixed variable generation. And the more variable generation you have in the system, the less there's space for inflexible "baseload" generation. Meaning, you need to run your "baseload" plants at lower load factor. Meaning, you will have higher LCOE for operating your "basload" plants. Meaning, they will be kicked out of the market. No ideology behind it, just simple merit order.