TY - JOUR
T1 - Assessment of RES technology market values and the merit-order effect - An econometric multi-country analysis
AU - Welisch, M.
AU - Ortner, A.
AU - Resch, G.
PY - 2016/2
Y1 - 2016/2
N2 - This study presents an assessment of both the merit-order effect and the market values of electricity generated from variable renewable energy sources, namely wind and solar photovoltaics. The historical price development in several European countries – that cover 73% of the renewable energy source share in Europe’s regional electricity markets – has been taken into account. To gain insights into the impact of renewable electricity on prices, market values and the merit-order effect were calculated using a multivariate regression analysis and ex-post calculations. All the countries analyzed show a consistent, negative impact of renewable electricity on electricity spot market prices and a decreasing market value of renewable energy source, possibly attributable to increased shares. The coefficients are economically and statistically significant. This study provides insights into a large geographical spread of European electricity markets, enables a comparison between countries, and therefore has valuable implications for policy makers.
AB - This study presents an assessment of both the merit-order effect and the market values of electricity generated from variable renewable energy sources, namely wind and solar photovoltaics. The historical price development in several European countries – that cover 73% of the renewable energy source share in Europe’s regional electricity markets – has been taken into account. To gain insights into the impact of renewable electricity on prices, market values and the merit-order effect were calculated using a multivariate regression analysis and ex-post calculations. All the countries analyzed show a consistent, negative impact of renewable electricity on electricity spot market prices and a decreasing market value of renewable energy source, possibly attributable to increased shares. The coefficients are economically and statistically significant. This study provides insights into a large geographical spread of European electricity markets, enables a comparison between countries, and therefore has valuable implications for policy makers.
KW - renewable energy
KW - merit-order effect
KW - econometric analysis
UR - http://www.scopus.com/inward/record.url?eid=2-s2.0-84976563713&partnerID=MN8TOARS
U2 - 10.1177/0958305X16638574
DO - 10.1177/0958305X16638574
M3 - Article
SN - 0958-305X
VL - 27
SP - 105
EP - 121
JO - Energy and Environment
JF - Energy and Environment
IS - 1
ER -