The Impact of Renewable Energy Generation on the Spot Market Price in Germany: Ex-Post Analysis using Boosting Method

Alexander Ryota Keeley, Kenichi Matsumoto, Kenta Tanaka, Yogi Sugiawan, and Shunsuke Managi
Authors registered in the RePEc Author Service: Shunsuke Managi and Kenta Tanaka

The Energy Journal, 2020, vol. Volume 41, issue Special Issue

Abstract: This study combines regression analysis with machine learning analysis to study the merit order effect of renewable energy focusing on German market, the largest market in Europe with high renewable energy penetration. The results show that electricity from wind and solar sources reduced the spot market price by 9.64 ¬/MWh on average during the period from 2010 to 2017. Wind had a relatively stable impact across the day, ranging from 5.88 ¬/MWh to 8.04 ¬/MWh, while the solar energy impact varied greatly across different hours, ranging from 0.24 ¬/MWh to 11.78 ¬/MWh and having a stronger impact than wind during peak hours. The results also show characteristics of the interactions between renewable energy and spot market prices, including the slightly diminishing merit order effect of renewable energy at high generation volumes. Finally, a scenario-based analysis illustrates how different proportions of wind and solar energies affect the spot market price.

JEL-codes: F0 (search for similar items in EconPapers)
Date: 2020
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Citations: View citations in EconPapers (5)

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Related works:
Journal Article: The Impact of Renewable Energy Generation on the Spot Market Price in Germany: Ex-Post Analysis using Boosting Method (2021)
Journal Article: The Impact of Renewable Energy Generation on the Spot Market Price in Germany: Ex-Post Analysis using Boosting Method (2020)
Working Paper: The Impact of Renewable Energy Generation on the Spot Market Price in Germany: Ex-Post Analysis using Boosting Method (2020)
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