Transitioning Towards a 100% Solar-Hydro Based Generation: A System Dynamic Approach

Many countries have targeted a gradual transition towards 100% green generation; however, there is uncertainty concerning the economic and social consequences of such transition. The main technologies that been implemented are hydro, wind solar. latter two could cause an increase in electricity prices due to mismatch between demand supply. This paper uses system dynamics approach analyze process Switzerland, which gradually moving from nuclear solar hydro base generation. We consider hydro-pumped storage address timing problem supply demand. developed different scenarios test viability system. Our findings indicate leaving free market will entail shortages during transition, as well doubling price. To mitigate this effect, we propose capacity auction mechanism smooth process. find subsidizing PV indirectly encourages storage, thereby eliminating shortages, mitigating price