by Stephen Lacey
January 13, 2016

What happens when you put a lot of solar and wind on the grid all at once? It may knock out some dirty fossil generation, but it could also knock itself out -- economically speaking, at least.

That's due to the "value deflation effect." Without storage, a resource like solar needs to dump all its generation on the grid when the sun is out. With enough PV on the grid, that could depress wholesale prices during the middle of the day and cut the revenue that solar projects earn. Under that scenario, economists warn that every incremental...