IDEAS home Printed from https://ideas.repec.org/a/eee/enepol/v178y2023ics0301421523001659.html
   My bibliography  Save this article

Coal generator revenues and the rise of renewable generation: Evidence from Australia’s National Electricity Market

Author

Listed:
  • Csereklyei, Zsuzsanna
  • Manchester, Julia
  • Ancev, Tihomir

Abstract

In this paper we investigate the relationship between increasing shares of renewable generation and the wholesale market revenues of coal-fired generating units in Australia's National Electricity Market (NEM). Renewable generation may influence coal generator revenues both through decreased spot market prices and reduced dispatch allocation. We use autoregressive distributed lag (ARDL) models on a high-frequency (30-min) panel dataset between July 2017 and June 2021. We find that a one MWh increase in wind and solar generation each is associated with decreases in coal generator revenues of 0.0062–0.0083 and 0.0041 to 0.0054 AUD2012 respectively, per megawatt of installed coal-fired generating capacity. These results can inform managerial and policy decisions regarding the likelihood of more premature coal plant exits in the coming decades.

Suggested Citation

  • Csereklyei, Zsuzsanna & Manchester, Julia & Ancev, Tihomir, 2023. "Coal generator revenues and the rise of renewable generation: Evidence from Australia’s National Electricity Market," Energy Policy, Elsevier, vol. 178(C).
    • Handle: RePEc:eee:enepol:v:178:y:2023:i:c:s0301421523001659
    DOI: 10.1016/j.enpol.2023.113580
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0301421523001659
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.enpol.2023.113580?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    More about this item

    Keywords

    Coal generator revenues; Coal plant exits; Renewable generation; Australia;
    All these keywords.

    JEL classification:

    • Q40 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - General
    • Q41 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Demand and Supply; Prices
    • Q42 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Alternative Energy Sources

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:enepol:v:178:y:2023:i:c:s0301421523001659. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/enpol .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.