How does renewables competition affect forward contracting in electricity markets?

Robert Ritz

Cambridge Working Papers in Economics from Faculty of Economics, University of Cambridge

Abstract: Higher renewables penetration reduces the incentive of conventional electricity generators to make forward commitments via forward- or retail-market contracts. This can undermine the role of forward contracting in mitigating market power. More renewables raise wholesale electricity prices in states of the world where their capacity utilizaton 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: 2016-03-21
New Economics Papers: this item is included in nep-com and nep-ene
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Citations: View citations in EconPapers (10)

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Journal Article: 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:cam:camdae:1617

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