To evaluate the costs of different strategies for deep decarbonization of electricity generation, the team looked at nearly 1,000 different scenarios involving different assumptions about the availability and cost of low-carbon technologies, geographical variations in the availability of renewable resources, and different policies on their use.
Regarding the policies, the team compared two different approaches. The “restrictive” approach permitted only the use of solar and wind generation plus battery storage, augmented by measures to reduce and shift the timing of demand for electricity, as well as long-distance transmission lines to help smooth out local and regional variations. The “inclusive” approach used all of those technologies but also permitted the option of using continual carbon-free sources, such as nuclear power, bioenergy, and natural gas with a system for capturing and storing carbon emissions. Under every case the team studied, the broader mix of sources was found to be more affordable.
The cost savings of the more inclusive approach relative to the more restricted case were substantial. Including continual, or “firm,” low-carbon resources in a zero-carbon resource mix lowered costs anywhere from 10 percent to as much as 62 percent, across the many scenarios analyzed. That’s important to know, the authors stress, because in many cases existing and proposed regulations and economic incentives favor, or even mandate, a more restricted range of energy resources.