{"id":1332,"date":"2017-04-05T09:50:37","date_gmt":"2017-04-05T07:50:37","guid":{"rendered":"https:\/\/ceem-dauphine.eu\/?p=1332"},"modified":"2024-09-05T09:53:13","modified_gmt":"2024-09-05T07:53:13","slug":"how-renewable-production-depresses-electricity-prices-evidence-from-the-german-market","status":"publish","type":"post","link":"https:\/\/ceem-dauphine.eu\/en\/how-renewable-production-depresses-electricity-prices-evidence-from-the-german-market\/","title":{"rendered":"How renewable production depresses electricity prices: Evidence from the German market"},"content":{"rendered":"<p>The urgency of climate change has led several countries to develop renewable energy in order to reduce<br \/>\nCO2 emissions, through the means of various subsidies. In the electricity sector, one drawback of such<br \/>\npolicies is the negative impact on electricity prices, known as the merit-order effect. This paper aims at<br \/>\nassessing how intermittent renewable production depresses electricity prices in Germany, which has experienced<br \/>\na significant increase of its renewable capacity over the last two decades. To do so, we use a tworegime<br \/>\nMarkov switching model, that enables to disentangle the impact of wind and solar generation,<br \/>\ndepending on the price being high or low. We find as expected that renewable production induces a negative<br \/>\nmarginal effect, which is stronger in regimes of relatively high prices. In addition, we show that<br \/>\nboth wind and solar productions have a significant impact on the distribution of prices, and in particular<br \/>\non the frequency and expected duration of each regime. This has implications in terms of market design,<br \/>\nsecurity of supply, and support mechanisms for renewables.<\/p>\n<p>Energy Policy 117, 2018<\/p>\n","protected":false},"excerpt":{"rendered":"The urgency of climate change has led several countries to develop renewable energy in order to reduce [&hellip;]","protected":false},"author":3,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[13,26],"tags":[],"class_list":["post-1332","post","type-post","status-publish","format-standard","hentry","category-publications-en","category-journal-articles"],"acf":[],"_links":{"self":[{"href":"https:\/\/ceem-dauphine.eu\/en\/wp-json\/wp\/v2\/posts\/1332","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/ceem-dauphine.eu\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/ceem-dauphine.eu\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/ceem-dauphine.eu\/en\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/ceem-dauphine.eu\/en\/wp-json\/wp\/v2\/comments?post=1332"}],"version-history":[{"count":2,"href":"https:\/\/ceem-dauphine.eu\/en\/wp-json\/wp\/v2\/posts\/1332\/revisions"}],"predecessor-version":[{"id":1336,"href":"https:\/\/ceem-dauphine.eu\/en\/wp-json\/wp\/v2\/posts\/1332\/revisions\/1336"}],"wp:attachment":[{"href":"https:\/\/ceem-dauphine.eu\/en\/wp-json\/wp\/v2\/media?parent=1332"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/ceem-dauphine.eu\/en\/wp-json\/wp\/v2\/categories?post=1332"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/ceem-dauphine.eu\/en\/wp-json\/wp\/v2\/tags?post=1332"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}