Solar to Wreck Economics of Existing Power MarketsHighlights:
- Continued solar growth could lead to significant decreases in wholesale electricity prices during most peak hours.
- High solar penetrations could also impact power prices when solar does not operate, affect the frequency and severity of electricity price spikes, and impact natural gas price volatility.
- While lower wholesale prices could impact solar’s growth they will also hurt other energy sources, particularly coal and nuclear but also natural gas and energy efficiency.
- Ultimately, the price effects of solar have significant but uncertain ramifications for environmental goals, energy prices, and, ultimately, electricity market design.