How does renewables competition affect forward contracting in electricity markets?


Type
Working Paper
Change log
Authors
Ritz, Robert 
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 utilization is low due to intermittency.

Description
Keywords
Electricity markets, renewable energy, forward contracting
Is Part Of