Theo Wolters: Towards a new energy system based on wind, solar and nuclear energy
(Chairman of The Environment, Science & Policy Foundation)
With the transition from fossil to CO2 free energy sources, comes a major shift in electricity price from fuel costs to investment costs, or in general, from operational expenses (OPEX) to capital expenses (CAPEX).
Far more important for the electricity price however is the difference in system costs between on-demand electricity production, and sun and wind driven production.
The present electricity system relies on a merit order based market, which has worked great for decades, but cannot cope with a substantial share of subsidised CAPEX driven production, in combination with a huge reduction of on-demand production. Without changing the system, we will end up with frequent and long black-outs, and a very high electricity price.
In my presentation I will compare solar and wind vs nuclear energy in an electricity system with a strongly reduced fossil fuel share on: production cost, backup cost, grid cost and net-stability cost (frequency-, inertia-, and reserve capacity).
I will propose a new electricity system, allocating the huge system costs to the sources that cause them. This which will restore market function, and deal with all demands of low carbon electricity production, thus providing both maximum grid stability and lowest electricity cost.