The impact of wind generation on the electricity spot-market price level and variance: The Texas experience
AbstractThe literature on renewable energy suggests that an increase in intermittent wind generation would reduce the spot electricity market price by displacing high fuel-cost marginal generation. Taking advantage of a large file of Texas-based 15-min data, we show that while rising wind generation does indeed tend to reduce the level of spot prices, it is also likely to enlarge the spot-price variance. The key policy implication is that increasing use of price risk management should accompany expanded deployment of wind generation.
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Bibliographic InfoArticle provided by Elsevier in its journal Energy Policy.
Volume (Year): 39 (2011)
Issue (Month): 7 (July)
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Web page: http://www.elsevier.com/locate/enpol
Wind energy Electricity price Risk management;
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