Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/80727 
Year of Publication: 
2013
Series/Report no.: 
DICE Discussion Paper No. 104
Publisher: 
Heinrich Heine University Düsseldorf, Düsseldorf Institute for Competition Economics (DICE), Düsseldorf
Abstract: 
We estimate the impact of renewable energy sources on the merit order and the wholesale price in Spain. We use a structural vectorautoregressive model for the merit order of production and argue that wind and solar production are exogenous to the system. As expected the overall effect is negative for the wholesale price and the produced quantities of most generation technologies. The estimated impact, however, is biggest for mid-merit plants. This finding sheds light on the theoretical discussion about which power plants are affected most by renewable energy sources. The effect is also mainly driven by wind power. Solar energy increases wholesale prices as peak plants enlarge their production with more solar power.
ISBN: 
978-386-30410-3-8
Document Type: 
Working Paper

Files in This Item:
File
Size
793.45 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.