Effects of Increased Renewable Energy Consumption on Electricity Prices: Evidence for Six South American Countries

Abstract

This research examines the relationship between renewable energy consumption and electricity prices in six South American countries (Argentina, Bolivia, Colombia, Chile, Ecuador and Peru). The methodology used is a panel econometric model with annual data for the period 1990–2015. The results show that the consumption of renewable energies influences the price of electricity paid by households, although its influence is very moderate. On the other hand, it was observed that the consumption of renewable energies has no relationship with the energy prices of the industrial sector and the commercial and services sector. In the countries analyzed, an increase in GDP causes an increase in the price of energy in the industrial sector. With more CO2 emissions and a rise in the international price of oil, the annual average price of the industrial sector decreases.

From Wind to Hybrid: A Contribution to the Optimal Design of Utility-Scale Hybrid Power Plants

“…The technical and economic performance of an HRPP in utilityscale applications that participates in the DA market depends on the complementarity profile of the renewable energy resources feeding the technologies that constitute the HRPP [35]. Furthermore, it will also depend on how well the production profile can correlate with energy prices [36,37], especially if no storage system is installed. Hence, the methodology proposed in this paper builds on the current literature by:…”