Beyond Baseload Power: A New Paradigm of Power System Operation

Since its first usage in English over a century ago, the term “baseload” power has spread around the world and is now found in multiple other languages including Chinese, Arabic, and German. The term “baseload” is commonly used by power system engineers and investors when talking about the electricity system. And although so-called “baseload power plants” only represent roughly 40% of the world’s installed electricity generation capacity, they form the backbone of most power systems today.

Baseload power plants refers to large generating plants with high utilization factors that run most of the time and are used to meet society’s continuous need for electricity.

In most cases, the term baseload is used to refer to coal and nuclear plants, but it can also be used to refer to large reservoir hydro, geothermal, or to biomass or biogas power plants. And for much of the last century, these baseload power plants (particularly coal and hydro) were often among the lowest-cost options to meet electricity demand.

With the rise of low-cost wind and solar power, this baseload paradigm has come under strain. Utilities and regulators interested in keeping electricity prices low are starting to introduce variable renewables like wind and solar at scale instead: since the latter have zero marginal costs, they typically get dispatched first, making them by default the new foundation of the power system. In the process, other generating units are having to ramp and flex around them.

However, as this report shows, the transition from a “baseload paradigm” to a “renewables paradigm” is starting to generate pushback – in fact, many experts and power system engineers continue struggle to envision a power system operating reliably without baseload power.

How should a system without baseload power work? What about the dreaded “Dunkelflaute”, the extended periods with little wind, and little solar that occur once or twice a year in countries like Germany?

This report attempts to help both experts and lay persons better understand this transformation. A look around the world shows without the shadow of a doubt that a future “beyond baseload” is not only possible: it’s already taking shape.

  • Year: September 2025