AN IMPACT ANALYSIS OF RENEWABLE ENERGY ON ELECTRICITY SPOT MARKET PRICES

• Type: Article in International Conference Proceedings Book
• Date: 2019

Authors

Carlos Alves (Author) FEP; Pinto, PD (Author) Other

Conference proceedings International

Title: PROCEEDINGS OF THE 4TH INTERNATIONAL CONFERENCE ON ENERGY & ENVIRONMENT (ICEE 2019): BRINGING TOGETHER ENGINEERING AND ECONOMICS

Pages: 585-590

4th International Conference on Energy and Environment - Bringing together Engineering and Economics (ICEE)

Guimaraes, PORTUGAL, MAY 16-17, 2019

Indexing

ISI Web of Knowledge - 0 Citations

Other information

Authenticus ID: P-00R-E7N

Abstract (EN): There are two recognized tendencies in electricity markets: the development of spot markets and the increase of renewable electricity generation. These tendencies create dynamics in both price and volatility. In Portugal, there are powerful support schemes for renewable electricity. Therefore, the main sources for generating electricity in Portugal are renewable. This paper analyzes ex-post the impact of energy produced in special regime on the wholesale hourly spot market prices of Portuguese electricity during the period 2009-2016. It finds that special regime generation has a negative impact on the wholesale price. Effectively, an increase of special regime generation by 1.0 GWh, all else being equal, reduces the wholesale spot price by 3.9 (sic)/MWh. This represents 8.6% of the average wholesale price. Moreover, the substitution of 1.0 GWh of coal generation for special regime sources has an impact on electricity spot prices of, on average, -15.96 (sic)/MWh. This paper also concludes that using special regime generation to supply the future growth of demand will decrease wholesale electricity spot prices more intensively than using other technologies.

Language: English

Type (Professor's evaluation): Scientific

No. of pages: 6