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An analysis of the decline of electricity spot prices in Europe: Who is to blame?

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  • Bublitz, Andreas
  • Keles, Dogan
  • Fichtner, Wolf

Abstract

The European electricity markets are going through a phase of agitating transition, which is shaped by different key factors, such as the expansion of renewable energies, the changes in the EU carbon trading scheme and the European market integration. In addition, markets are affected by the volatile prices of primary energy carriers, e.g. gas and coal. The development of these different factors led to a decline of German wholesale electricity prices of almost 40% — from about 51€/MWh in 2011 to 31€/MWh in 2015.

Suggested Citation

  • Bublitz, Andreas & Keles, Dogan & Fichtner, Wolf, 2017. "An analysis of the decline of electricity spot prices in Europe: Who is to blame?," Energy Policy, Elsevier, vol. 107(C), pages 323-336.
  • Handle: RePEc:eee:enepol:v:107:y:2017:i:c:p:323-336
    DOI: 10.1016/j.enpol.2017.04.034
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