The policy makers of the Federal Energy Regulation Committee (FERC) and PJM Interconnection are at least focusing on the role of battery energy storage and flexible resources such as distributed resource aggregators (DRA) in power markets ( Alanne and Saari, 2006). In addition to traditional power and 4–6 hours of power demand, new types of power services may be encouraged to manage these intrinsic features of clean-up technology. The cost of grid-level systems for renewable energy (RE), where they replace shipping sources, is high (15–80 MWh) but dependent on the country, context, and technology (offshore wind with solar PVs).

Unlike fossil fuels or nuclear fuel, wind and solar energy cannot be transported, and although RESs are available in many areas, the best resources are often far from the loading centers, which in some cases increase the cost of connections. With the government’s incentives to take advantage of wind and solar technology, their costs have decreased and are now in the same league per kilowatt hour as the cost of fossil fuel technologies has risen, especially with the likely cost of carbon emissions from them. Wind turbines have developed significantly over the last few decades, solar PVs are much more efficient and there is a better chance of using energy in tides and waves. Nowadays, we are well ahead of the challenge and at the same time we are testing the practical limitations of wind and solar. Solar PV energy represents the second cheapest energy source. While RESs can be more flexible to keep track of the load curve, more affordable battery storage and other innovations are helping to mitigate the effects of wind and solar intermates, increasing the reliability needed to compete with conventional sources. In fact, the non-subsidized cost of energy produced by the land-based wind turbines and solar PVs has declined below the price of other renewable generation technologies all around the world. In the run-up to forecasts and despite persistent perceptions, wind and solar energy have become competitive with conventional generation technologies in the world’s leading markets, even without subsidies. Technological innovation, cost efficiency, and increasing consumer demand are driving RESs, especially wind and solar energy. Since the 1970s, geothermal energy has been recognized as an alternative and renewable resource, China has carried out extensive research to identify high-temperature sources for electricity generation ( Zhang et al., 2013). However, due to the increase in Chinese renewable production the cost of renewable technologies has fallen dramatically. Solar energy has the leading position among other renewables because of its popularity among people and various stakeholders and policy makers.

Their cost interval in China, North and South America now lies within the limits that are characteristic of fossil fuel-based generation ( IRENA, 2018). In the solar energy and solar PVs industry, the most competitive industrial-scale projects supply electricity at $0.08 per kWh without financial support, and lower prices are possible while lowering financing costs. Individual projects in wind power regularly supply electricity at $0.04 per kWh without financial support, while for power plants running on fossil fuels, the cost interval is $0.04–0.14 per kWh ( IRENA, 2018).

In many countries, including Europe, wind energy is one of the most competitive sources of new energy capacity. The cost of electricity production by onshore wind power plants, in geothermal and hydropower, and based on biomass is equal to or lower than the cost of generation at coal, gas and diesel power plants, even without financial support and with falling oil prices. Wadim Strielkowski, in Social Impacts of Smart Grids, 2020 4.2 Renewable energy source and power markets

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