How does renewables competition affect forward contracting in electricity markets?
Cambridge Working Papers in Economics
Faculty of Economics
MetadataShow full item record
Ritz, R. (2016). How does renewables competition affect forward contracting in electricity markets?. https://doi.org/10.17863/CAM.5646
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 utilization is low due to intermittency.
Electricity markets, renewable energy, forward contracting
This record's DOI: https://doi.org/10.17863/CAM.5646
This record's URL: https://www.repository.cam.ac.uk/handle/1810/255161
All Rights Reserved
Licence URL: https://www.rioxx.net/licenses/all-rights-reserved/