To understand if renewables stabilize or destabilize electricity prices, we simulate European power markets as projected by the National Energy and Climate Plans for 2030 but replicating the historical variability in electricity demand, the prices of fossil fuels and weather. We propose a β-sensitivity metric, defined as the projected increase in the average annual price of electricity when the price of natural gas increases by 1 euro. We show that annual power prices spikes would be more moderate because the β-sensitivity would fall from 1.4 euros to 1 euro. Deployment of solar photovoltaic and wind technologies exceeding 30% of the 2030 target would lower it further, below 0.5 euros. Our framework shows that this stabilization of prices would produce social welfare gains, that is, we find an insurance value of renewables. Because market mechanisms do not internalize this value, we argue that it should be explicitly considered in energy policy decisions.
Electric vehicles are increasingly being adopted in Great Britain and other parts of the world, driven by the perception that they offer a cost-effective alternative to internal combustion engine vehicles while reducing emissions. However, a key element that underpins this perception is the longevity of electric vehicles, which remains relatively under researched. Here we show that although early battery electric vehicles (BEVs) exhibited lower reliability than internal combustion engine vehicles, rapid technological advancements have allowed newer BEVs to achieve comparable lifespans, even under more intensive use. Longevity is also found to be impacted by engine size, location and make of vehicle. We provide parameter estimates for life mileage that can be used to update life cycle assessment and total cost of ownership studies of different vehicle powertrains. Our results also shed light on BEV diffusion patterns, fleet replacement strategies and end-of-life treatment planning, including the increasingly important debate around BEV battery recycling and second-life options.