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As renewable energies with low marginal generation costs expand in the power mix, they exert a downward pressure on wholesale prices for electricity -- displacing conventional and more expensive fossil fuel power generation1 (from coal, natural gas, fuel gas and oil). This increases the risk of experiencing mismatches in electricity supply and demand.2 A key factor for securing electricity supply while enabling renewable energy expansion is, therefore, the development of flexible, sustainable technologies for both short- and long-term electricity storage. This study explores the impact of battery subsidies on renewable energy expansion and supply security in Germany.
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