The impact of wind power generation on the electricity price in Germany
Energy Economics, 2014, vol. 44, issue C, 270-280
This paper investigates the relationship between intermittent wind power generation and electricity price behaviour in Germany. Using a GARCH model, I evaluate the effect of wind electricity generation on the level and the volatility of the electricity price in an integrated approach. The results show that variable wind power reduces the price level but increases its volatility. This paper's results also indicate that regulatory change has stabilised the wholesale price. The electricity price volatility has decreased in Germany after a modification of the marketing mechanism of renewable electricity. This gives confidence that further adjustments to regulation and policy may foster a better integration of renewables into the power system.
Keywords: Renewable energy sources; Intermittency; Electricity price modelling; GARCH (search for similar items in EconPapers)
JEL-codes: C22 Q42 Q48 (search for similar items in EconPapers)
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Working Paper: The Impact of Wind Power Generation on the Electricity Price in Germany (2012)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:eneeco:v:44:y:2014:i:c:p:270-280
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