Nuclear Energy and Renewables
System Effects in Low-carbon Electricity Systems
This report addresses the increasingly important interactions of variable renewables
and dispatchable energy technologies, such as nuclear power, in terms of their effects
on electricity systems. These effects add costs to the production of electricity,
which are not usually transparent. The report recommends that decision-makers should
take into account such system costs and internalise them according to a “generator
pays” principle, which is currently not the case. Analysing data from six OECD/NEA
countries, the study finds that including the system costs of variable renewables
at the level of the electricity grid increases the total costs of electricity supply
by up to one-third, depending on technology, country and penetration levels. In addition,
it concludes that, unless the current market subsidies for renewables are altered,
dispatchable technologies will increasingly not be replaced as they reach their end
of life and consequently security of supply will suffer. This implies that significant
changes in management and cost allocation will be needed to generate the flexibility
required for an economically viable coexistence of nuclear energy and renewables in
increasingly decarbonised electricity systems.
Published on November 07, 2012