Joint IRENA and IEA-RETD Workshop “Levelised Costs of Renewable Energy: What if costs continue to drop?”

What if the Costs of Renewables Continue to Drop

Workshop summary

Friday 26 October 2012, Bonn, GERMANY

The costs of many Renewable Energy Technologies (RET) have dropped significantly in recent years due to a virtuous circle of high learning rates and increased RET deployment. At the same time, the impact of integrating larger shares of renewables into electricity systems is becoming more apparent. Institutions, including IRENA and IEA-RETD, are studying the issues and the implications surrounding these developments.

If deployment continues to accelerate, and prices follow their downward trend, policy makers and other stakeholders will need to adjust to this rapidly changing environment. How will these developments impact policy makers and other stakeholders today? How will this impact change in 5 years? How can actors today be better prepared for the scenario of further cost reductions and increased volumes up to 2015 and beyond?

This IRENA and IEA-RETD workshop aims to bring together industry representatives, scientists and policy makers to discuss the recent developments in RET costs and the future implications of these developments.

The workshop aims to:

  • Update participants with the latest accurate information on RET costs (including system integration costs), while also offering a platform to critically challenge this information,
  • Raise awareness, and address potential misperceptions of RET development, by facilitating dialogue on implications for policy makers and other stakeholders (utilities, TDOs, investors, financers) up to 2015, and
  • Prioritise actions needed in the next three to five years to ensure policy developments anticipate developments in RET markets. This will enable policy makers and stakeholders to avoid difficult to control situations, or ones leading to inefficiencies.

For further information please go to the IRENA website here.

Workshop information:

Session 1 – Levelised costs of energy: presentation of recent IRENA and IEA-RETD work

Cost status and determining factors for renewable power generation
Michael Taylor, IRENA

IEA-RETD Study on Cost and Business Case Comparisons of Renewable versus Non-Renewable technologies
Mercedes Mostajo, PRYSMA S.A. (on behalf of IEA-RETD)


Session 2 – System integration costs

System integration costs – External costs of system integration for variable RE, comparing options on equal power quality
Carsten Hoyer-Klick, German Aerospace Centre, Institute of Technical Thermodynamics

The need for storage and backup capacity – The value of renewable balancing power and storage
Renée Heller, Ecofys Netherlands BV

The TSO/DSO perspective
Anders Bavnhøj Hansen, Energinet DK


Session 3 – Electric vehicle prospects for accelerated deployment of renewables

IEA-RETD Project RETRANS – The co-evolution of the electricity and transport sector
Thomas Dederichs, Bundesnetzagentur (on behalf of IEA-RETD)

Transportation work
Carsten Hoyer-Klick, German Aerospace Centre, Institute of Technical Thermodynamics

Status of EV and battery development
Francisco Carranza, Nissan Europe