Flexibility

The report argues that electricity systems can transition to near-total renewable energy at a cost competitive with gas-based systems, provided a portfolio of flexibility resources is deployed. It identifies six types of flexibility needs—ranging from instantaneous reserves to seasonal balancing—and evaluates technologies such as batteries, demand-side management, and hydroelectric power. Regional analysis shows that while most areas are well-positioned for the next decade, long-term needs for intraday and interday balancing will require significant investment and market redesign to avoid costly lock-in of fossil fuel assets.

• A near-total renewable energy system is currently cost-competitive with a gas-based system if a carbon price of $50/tonne is applied; by 2030, it will be competitive even without a carbon price.
• Flexibility is not a single product but a set of needs differentiated by response time, including spinning reserves, short-term reserves, ramping, daily balancing, and seasonal balancing.
• A portfolio approach to flexibility is the most cost-effective strategy, as no single technology can meet all regional requirements. Demand-side flexibility consistently ranks as one of the lowest-cost options.
• By 2030, lithium-ion battery costs are expected to decline to the point where they become cheaper than new combined cycle gas turbines (CCGT) for daily energy shifting.
• Regional analysis indicates that California, Germany, and the Nordic region are generally well-covered for flexibility needs over the next 10 years, but Maharashtra faces immediate strain due to growing demand and ramping needs.
• In California, the 'duck curve' highlights a critical need for ramping capacity between 5pm and 8pm as solar generation drops and demand peaks.
• The Nordic region possesses a significant surplus of flexibility due to its vast hydropower capacity, which could be exported to other European regions to lower overall transition costs.
• Seasonal balancing remains a high-cost challenge; new CCGTs combined with renewable curtailment are currently the most cost-effective new-build option for seasonal shifting.
• Current 10-year planning horizons may lead to the 'lock-in' of supply-side technologies, such as gas turbines, and discourage the development of longer-term, lower-cost demand-side and technological solutions.

APA

Pierpont, B., Nelson, D., Goggins, A., & Posner, D. (2017). Flexibility. Climate Policy Initiative. https://www.climatepolicyinitiative.org/wp-content/uploads/2017/04/CPI-Flexibility-the-path-to-low-carbon-low-cost-grids-April-2017.pdf

Chicago

Pierpont, Brendan, David Nelson, Andrew Goggins, and David Posner. Flexibility. Climate Policy Initiative, 2017. https://www.climatepolicyinitiative.org/wp-content/uploads/2017/04/CPI-Flexibility-the-path-to-low-carbon-low-cost-grids-April-2017.pdf.

Wikipedia

{{cite report |last1=Pierpont |first1=Brendan |last2=Nelson |first2=David |last3=Goggins |first3=Andrew |last4=Posner |first4=David |title=Flexibility |publisher=Climate Policy Initiative |date=April 2017 |url=https://www.climatepolicyinitiative.org/wp-content/uploads/2017/04/CPI-Flexibility-the-path-to-low-carbon-low-cost-grids-April-2017.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{pierpont2017flexibility, author = {Pierpont, Brendan and Nelson, David and Goggins, Andrew and Posner, David}, title = {{Flexibility}}, institution = {Climate Policy Initiative}, year = {2017}, month = apr, url = {https://www.climatepolicyinitiative.org/wp-content/uploads/2017/04/CPI-Flexibility-the-path-to-low-carbon-low-cost-grids-April-2017.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }