Renewable Energy and Its Impact on Power Markets

The market value and impact of offshore wind on the electricity spot market: Evidence from Germany

“…Furthermore, a differentiation was made between short-term and long-term effects because in the discussion of a decreasing market price caused by large amounts of variable renewable energy it is sometimes forgotten that the main objective of this expansion is to substitute carbon intensive energy resources and nuclear power plants. Thus, this article also investigates what happens in the long term when wind energy substitutes these base load power plants (see [30] for a complete discussion regarding short-term and long-term effects of renewable energies in electricity markets).…”

The Effect of Intermittent Renewables on the Electricity Price Variance

“…We pick Germany as a showcase because investment in renewable sources has been considerable in the last decade. Figure 3(a) documents this, showing the installed capacity of wind power and photovoltaics: installed capacity of wind plants was growing steadily between 2001 and 2012 with an average compound annual growth rate of about 12% and installed capacity of PV more than tripled between 2009 and 2012 (see also Wozabal et al, 2013).…”

“…The effect of this substitution should be marginal, since demand can be very well predicted. The mean average percentage error (MAPE) 6 of the demand forecast is 2% for state of the art methods (see McSharry and Taylor, 2007;Taylor, 2010), as compared to the MAPE for wind power and PV production forecasts which range from 12% to 18%, (Wozabal et al, 2013).…”