Does the use of Solar and Wind Energy Increase Retail Prices in Europe? Evidence from EU-27

• Type: Article in International Conference Proceedings Book
• Date: 2015

Authors

Sisodia, GS (Author) Other; Maria Isabel Soares (Author) FEP; Ferreira, P (Author) Other; Banerji, S (Author) Other; Van den Poel, D (Author) Other; Kumar, M (Author) Other

Conference proceedings International

Title: 2015 INTERNATIONAL CONFERENCE ON ALTERNATIVE ENERGY IN DEVELOPING COUNTRIES AND EMERGING ECONOMIES

Pages: 506-512

International Conference on Alternative Energy in Developing Countries and Emerging Economics (AEDCEE)

Bangkok, THAILAND, MAY 28-29, 2015

Indexing

ISI Web of Knowledge - 5 Citations

Scopus - 6 Citations

Other information

Authenticus ID: P-00K-4RJ

DOI: 10.1016/j.egypro.2015.11.526

Abstract (EN): High technology and innovation market risk make renewable electricity generation expensive. On the other hand, green taxes applied to thermal generation also play a significant role in the increasing retail prices, considering that most energy systems are not completely renewable. The academic literature on the relationship between renewable electricity supply and electricity prices to final consumers suggest that a larger share of renewable electricity supply increases the price of electricity to end consumers although wind energy and solar energy have very low marginal costs. This study shows the individual contribution of solar and wind energy generation to the households and industrial electricity retail prices through panel data modeling of EU-27 (1995 to 2011). Random effect modeling was applied to understanding the net effect on prices. Independent variables include regulation perceptions, carbon emissions and levelised costs of electricity generation. The result of this study suggests that energy generation through wind and solar plays a negligible role in determining retail electricity prices to households, whereas in the case of industrial prices, their (solar and wind's) contribution is significant, but the value of the coefficient observed is close to zero. (C) 2015 The Authors. Published by Elsevier Ltd.

Language: English

Type (Professor's evaluation): Scientific

No. of pages: 7