Electricity Prices, Large-Scale Renewable Integration, and Policy Implications

dc.contributor.author	Kyritsis, Evangelos
dc.contributor.author	Andersson, Jonas
dc.contributor.author	Serletis, Apostolos
dc.date.accessioned	2016-11-22T13:50:47Z
dc.date.available	2016-11-22T13:50:47Z
dc.date.issued	2016-11-22
dc.identifier.issn	1500-4066
dc.identifier.uri	http://hdl.handle.net/11250/2422511
dc.description.abstract	This paper investigates the effects of intermittent solar and wind power generation on electricity price formation in Germany. We use daily data from 2010 to 2015, a period with profound modifications in the German electricity market, the most notable being the rapid integration of photovoltaic and wind power sources, as well as the phasing out of nuclear energy. In the context of a GARCH-in-Mean model, we show that both solar and wind power Granger cause electricity prices, that solar power generation reduces the volatility of electricity prices by scaling down the use of peak-load power plants, and that wind power generation increases the volatility of electricity prices by challenging electricity market exibility.	nb_NO
dc.language.iso	eng	nb_NO
dc.publisher	FOR	nb_NO
dc.relation.ispartofseries	Discussion paper;18/16
dc.subject	Intermittency	nb_NO
dc.subject	Large-scale integration	nb_NO
dc.subject	Merit-order effect	nb_NO
dc.subject	Volatility	nb_NO
dc.subject	GARCH-in-Mean model	nb_NO
dc.title	Electricity Prices, Large-Scale Renewable Integration, and Policy Implications	nb_NO
dc.type	Working paper	nb_NO
dc.source.pagenumber	35	nb_NO