This article argues that optimally deployed intermittency solutions could affordably transform solar power generation into the firm power delivery system modern economies require, thereby enabling very high solar penetration and the displacement conventional power generation. The optimal deployment of these high‐penetration enabling solutions imply the existence of a healthy power grid, and therefore imply a central role for utilities and grid operators. This article also argues that a value‐based electricity compensation mechanism, recognizing the multifaceted, penetration‐dependent value and cost of solar energy, and capable of shaping consumption patterns to optimally match resource and demand, would be an effective vehicle to enable high solar penetration and deliver affordable firm power generation.
Richard Perez, et al., Achieving Very High PV Penetration 96 Energy Pol’y J. 27 (2016).