Assessment of the impacts of renewable energy variability in long-term decarbonization strategies

To meet the nationally determined contributions proposed by the countries that signed the Paris Agreement, investments must be made in renewable generation technologies such as solar and wind. However, due to their high variability, these technologies pose challenges in terms of meeting demand or generating excess electricity. For this reason, energy system models are designed to capture this variability by considering flexibility technologies. Nevertheless, it is important to note that some energy system models lack integration with other sectors. Therefore, integrated assessment models have been employed to evaluate mitigation strategies, as they endogenously consider the linkages between energy and non-energy sectors. In addition, due to their complexity, these models do not account for the variability of renewable resources. Hence, this research aims to address this issue. This work represents the first attempt to evaluate how the introduction of hourly resolution affects the outcomes of integrated assessment models, specifically focusing on the Global Change Analysis Model (GCAM). We employ a soft-linking approach between the GCAM and the Highway to Renewable Energy Systems model (H2RES, an hourly level energy system model) to accomplish this. The proposed approach is tested using Chile’s Nationally Determined Contributions under different hydrological profiles in the power sector. The results show that it is possible to use the capacity obtained from the Global Change Analysis Model and implement it on an hourly scale. However, the feasibility of implementation depends on high levels of flexibility technologies, such as battery energy storage. When given the choice of investments in renewable sources and flexible technologies, the optimal dispatch of the H2RES model show small differences than those obtained by GCAM-Chile. H2RES differs from GCAM-Chile in approximately 5% for wind and 3% for solar electricity generation in the year 2050. However, feasible integration of significant renewable sources is obtained with relatively high Critical Excess Electricity Production levels, reaching 20% in 2050. This excess electricity is attributed to the necessity for flexible technologies to manage the intermittency of renewables sources when hourly profiles of such sources are considered.