Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/156378
Authors: 
Paschen, Marius
Year of Publication: 
2016
Series/Report no.: 
Oldenburg Discussion Papers in Economics V-397-16
Abstract: 
Renewable energy such as wind or solar power currently contributes a large share to the total German electricity supply as a result of the German energy transition. This paper presents an empirical analysis of how power shocks resulting from intermittent renewable supply affect forward premiums in German electricity markets. We contribute to the existing literature by investigating determinants of forward premiums, thereby focusing on wind and on solar power. We find positive wind shock effects on forward premiums. This can be explained as a consequence of the merit order effect. The findings in this paper underline the need to introduce wind power futures at the EEX to reduce the risk mark-up for participants in forward markets.
Subjects: 
Electricity Market
Forward Premiums
Intermittent Wind
Solar Power
JEL: 
Q42
Q41
C22
C51
Document Type: 
Working Paper

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