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Effect of wind generation on ERCOT nodal prices

Chen-Hao Tsai and Derya Eryilmaz

Energy Economics, 2018, vol. 76, issue C, 21-33

Abstract: In this paper, we utilize nodal price data at each thermal-generation facility within the ERCOT footprint between 2014 and 2016 to revisit an empirical question of great interest to various parties: how does wind integration affect the wholesale energy price? We find that for every additional 1000 MW of wind generation in a Real-Time 15-minute Settlement Interval, nodal prices at non-wind resources would be suppressed by $1.45/MWh to $4.45/MWh, with considerable heterogeneity across time and space.

Keywords: Renewables; Electricity market; Electricity price (search for similar items in EconPapers)
JEL-codes: L94 L98 Q42 Q48 (search for similar items in EconPapers)
Date: 2018
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Energy Economics is currently edited by R. S. J. Tol, Beng Ang, Lance Bachmeier, Perry Sadorsky, Ugur Soytas and J. P. Weyant

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