The effects of variable renewable electricity on energy efficiency and full load hours of fossil-fired power plants in the European Union

Abstract

This study focused on the effects of variable renewable electricity (VRE) on full load hours and energy efficiency of fossil-fired power generation in the European Union from 1990-2014. Member states were aggregated into three groups based on the level of VRE penetration. Average full load hours are found to be decreasing since 2006 for all groups. The decrease is most in the group with the highest VRE penetration level with a 53% decline from 2005 to 2014 (while VRE penetration increased from 8% to 25%). For VRE-medium the decrease was 34% from 2007 to 2014 (while VRE increased from 3% to 13%) and for VRE-low 32% (with 1% to 5% VRE penetration increase). Both the financial crisis and the share of VRE show strong correlations with full load hours. Both can explain the developments for VRE-high. For VRE-medium no significant relation with the recession was found and for VRE-low both factors were not significant. For energy efficiency, the commissioning year shows a strong correlation for natural gas and less for coal. Significant impacts are found for average commissioning year and full load hours on the energy efficiency of natural gas-fired power generation but not for coal.