Role of oil price shocks on macroeconomic activities: An SVAR approach to the Malaysian economy and monetary responses

The shift to a low carbon society is an issue of highest priority in the EU. For electricity generation, such a target counts with three main alternatives: renewable energies, nuclear power and carbon capture and storage. This paper focuses on the renewables’ alternative. Due to resource availability, a technology mix with a high share of PV and wind power is gaining increasing interest as a major solution for several EU member states and in part for the EU collectively to achieve decarbonization and energy security with acceptable costs. Due to their intermittency, the integration of high shares of PV and wind power in the electricity supply is challenging. This paper presents a techno-economic assessment of technology mix alternatives with a high share of PV and wind power in Spain, as an example. Thereby, the focus is on the option of increasing wind curtailment versus substituting rigid baseload generation in favor of the more flexible gas turbines and combined cycle gas turbines.