The impact of renewable energies on EEX day-ahead electricity prices
Journal
Energy Policy
ISSN
0301-4215
ISSN-Digital
1873-6777
Type
journal article
Date Issued
2014-06-02
Author(s)
Abstract
In this paper, we analyze the impact of renewable energies, wind and photovoltaic, on the formation of day-ahead electricity prices at EEX. We give an overview of the policy decisions concerning the promotion of renewable energy sources in Germany and discuss their consequences on day-ahead prices. An analysis of electricity spot prices reveals that the introduction of renewable energies enhances extreme price changes. In the frame of a dynamic fundamental model, we show that there has been a continuous electricity price adaption process to market fundamentals. Furthermore, the fundamental drivers of prices differ among hours with different load profiles. Our results imply that renewable energies decrease market spot prices and have implications on the traditional fuel mix for electricity production. However, the prices for the final consumers increased overall because they must pay in addition the feed-in tariffs for the promotion of renewable energy.
Language
English
Keywords
Electricity prices
Renewable energy
Negative prices
Fundamental model
HSG Classification
contribution to scientific community
Refereed
Yes
Publisher
Elsevier
Publisher place
Oxford
Volume
73
Number
-
Start page
196
End page
210
Pages
15
Subject(s)
Eprints ID
231947