Ring the alarm! Electricity markets, renewables, and the pandemic

David Benatia

Energy Economics, 2022, vol. 106, issue C

Abstract: The pandemic’s impacts on European electricity markets have been enormous, especially in countries with abundant low marginal costs of production like France. This article provides an in-depth quantitative study of the impacts of the crisis on the French electricity sector. During the first lockdown episode, France has experienced unparalleled reductions of electricity demand (−12%) and wholesale prices (−45%) resulting in gross revenue losses of 1.3 billion € (−47%) for market participants. This paper argues that the observed market outcomes during the crisis are somehow indicative of outcomes in a future with abundant renewable power, where prices will fall in a more sustainable way.

Keywords: Energy transition; COVID-19; Demand; Electricity markets (search for similar items in EconPapers)
JEL-codes: L94 Q02 Q41 Q47 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

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Related works:
Working Paper: Ring the alarm! Electricity markets, renewables, and the pandemic (2022)
Working Paper: Ring the Alarm! Electricity Markets, Renewables, and the Pandemic (2020)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:eneeco:v:106:y:2022:i:c:s0140988321005995

DOI: 10.1016/j.eneco.2021.105755

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