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Comparison of the influence of photovoltaic and wind power on the Spanish electricity prices by means of artificial intelligence techinques

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  • Azofra, D.
  • Martínez, E.
  • Jiménez, E.
  • Blanco, J.
  • Azofra, F.
  • Saenz-Díez, J.C.

Abstract

The paper analyses and compares the merit order effects of photovoltaic and wind power on final electricity prices in the Spanish spot market and the cost of electricity tariffs. Artificial intelligence techniques are used to model the electricity auction clearing process. Several algorithms are studied before the M5P learning algorithm is finally applied to create a tree model of the spot market. Electricity tariffs for domestic consumers are also recalculated for fictional scenarios with no photovoltaic or wind power production. The conclusion is that the influence of photovoltaic and wind power is uneven. Wind power reduces final electricity prices by €9.10/MWh, generating an overall saving for the system of €364.0 million and for the average domestic consumer of €1.95 using 2012 figures; photovoltaic power reduces electricity prices by €2.18/MWh, generating an overall cost overrun for the system of €2034.1 million and for the average domestic consumer of €38.82.

Suggested Citation

  • Azofra, D. & Martínez, E. & Jiménez, E. & Blanco, J. & Azofra, F. & Saenz-Díez, J.C., 2015. "Comparison of the influence of photovoltaic and wind power on the Spanish electricity prices by means of artificial intelligence techinques," Renewable and Sustainable Energy Reviews, Elsevier, vol. 42(C), pages 532-542.
    • Handle: RePEc:eee:rensus:v:42:y:2015:i:c:p:532-542
    DOI: 10.1016/j.rser.2014.10.048
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