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The impact of wind power generation on the electricity price in Germany

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  • Ketterer, Janina C.

Abstract

This paper investigates the relationship between intermittent wind power generation and electricity price behaviour in Germany. Using a GARCH model, I evaluate the effect of wind electricity generation on the level and the volatility of the electricity price in an integrated approach. The results show that variable wind power reduces the price level but increases its volatility. This paper's results also indicate that regulatory change has stabilised the wholesale price. The electricity price volatility has decreased in Germany after a modification of the marketing mechanism of renewable electricity. This gives confidence that further adjustments to regulation and policy may foster a better integration of renewables into the power system.

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  • Ketterer, Janina C., 2014. "The impact of wind power generation on the electricity price in Germany," Energy Economics, Elsevier, vol. 44(C), pages 270-280.
  • Handle: RePEc:eee:eneeco:v:44:y:2014:i:c:p:270-280
    DOI: 10.1016/j.eneco.2014.04.003
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    More about this item

    Keywords

    Renewable energy sources; Intermittency; Electricity price modelling; GARCH;
    All these keywords.

    JEL classification:

    • Q42 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Alternative Energy Sources
    • Q48 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Government Policy
    • C22 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes

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