How does renewables competition affect forward contracting in electricity markets?

Robert Ritz

Economics Letters, 2016, vol. 146, issue C, 135-139

Abstract: Higher renewables penetration reduces the incentive of conventional electricity generators to sell forward production. This can undermine the role of forward contracting in mitigating market power. More renewable energy raises wholesale electricity prices in states of the world where its capacity utilization is low due to intermittency.

Keywords: Electricity markets; Renewable energy; Forward contracting (search for similar items in EconPapers)
JEL-codes: L13 L94 Q21 Q41 (search for similar items in EconPapers)
Date: 2016
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Citations: View citations in EconPapers (10)

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Working Paper: How does renewables competition affect forward contracting in electricity markets? (2016)
Working Paper: How does renewables competition affect forward contracting in electricity markets? (2016)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecolet:v:146:y:2016:i:c:p:135-139

DOI: 10.1016/j.econlet.2016.07.024

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