Earlier quoted context omitted.
Are you suggesting that variable renewables plus batteries will approach prices that are... too cheap to meter? Looking at current cost VRE trends, when variable sources contribute up to 4% of world energy, and surrounded by massive amounts of cheap but high-carbon natural gas, and assuming that the trends will just continue exponentially downward without serious complication, is optimistic. Cost of integration of va…
Yes. Not indefinitely of course but we've seen nothing yet and there's enough in the research pipeline to suggest clear trends over the next two decades in terms of cost improvements, efficiency improvements, cheaper materials, etc. That 4% you mention was less than 1% not so long ago and will be closer to 40% not too long from now. Such is the nature of exponentials. IMHO 5X cost reduction is basically a done deal e…
There is also only so much more efficient the panels can get per sq m. Right now we are approaching 20% efficiency, so the idea that they are going to get 10* cheaper with complete ease seems to be pushing it.
Regardless solar and wind have a lot of externalities that aren't really priced into these 2c/kWh PPA prices. If you need to build a fleet of natural gas plants that are only operational 10% of the time and therefore cost 50c/kWh to take up the slack from low solar days it needs to be priced in somehow.