• Energy Research
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While the operating cost of electricity grids based on thermal generation was largely driven by the cost of fuel, as renewable penetration increases, ancillary services represent an increasingly large proportion of the running costs. Electric frequency is an important magnitude in highly renewable grids, as it becomes more volatile and therefore the cost related to maintaining it within safe bounds has significantly increased. So far, costs for frequency-containment ancillary services have been socialised in most countries, but it has become relevant to rethink this regulatory arrangement. In this paper, we discuss the issue of cost allocation for these services, highlighting the need to evolve towards a causation-based regulatory framework. We argue that parties responsible for creating the need for ancillary services should bear these costs. However, this would imply an important change in electricity market policy, therefore it is necessary to understand the impact on current and future investments on generation, as well as on electricity tariffs. Here we provide a mostly qualitative analysis of this issue, defining guidelines for practical implementation and further study. Published in journal Energy Policy

In the last decade, the manufacturing capacity of silicon, the dominant PV technology, has increasingly been concentrated in China. This has led to PV cost reduction of approximately 80%, while, at the same time, posing risks to PV supply chain security. Recent advancements of novel perovskite tandem PV technologies as an alternative to traditional silicon-based PV provide opportunities for diversification of the PV manufacturing capacity and for increasing the GHG emission benefit of solar PV. Against this background, we estimate the current and future cost-competitiveness and GHG emissions of a set of already commercialized as well as emerging PV technologies for different production locations (China, USA, EU), both at residential and utility-scale. We find EU and USA-manufactured thin-film tandems to have 2 to 4% and 0.5 to 2% higher costs per kWh and 37 to 40%and 32 to 35% less GHG emissions per kWh at residential and utility-scale, respectively. Our projections indicate that they will also retain competitive costs (up to 2% higher)and a 20% GHG emissions advantage per kWh in 2050.