24/7 carbon-free electricity matching accelerates adoption of advanced clean energy technologies

Abstract

Commitments to 24/7 carbon-free energy matching by companies and governments create an early market for technologies that can bridge the gaps between wind and solar generation. We argue that the commitment by a small number of companies to round-the-clock matching can spur substantial learning in these advanced technologies. We demonstrate these benefits for two technologies (long-duration energy storage and clean firm generation). The reduced costs from learning make 24/7 matching more attractive for other actors, leading to a virtuous circle that accelerates the time when the technologies become cost-competitive in the rest of the electricity market. These indirect effects unlock greenhouse gas savings far beyond the direct emission reductions from initial investments, illustrating how proactive contributions from the private sector can complement governmental support for advanced energy technologies, reduce pressure on tight fiscal budgets, and accelerate decarbonization of electricity systems.