IDEAS home Printed from https://ideas.repec.org/a/eee/renene/v256y2026iphs0960148125021433.html

Optimizing wind farm locations for revenue and reduced electricity costs in deregulated electricity markets

Author

Listed:
  • Salmelin, Markus
  • Sridhar, Araavind
  • Karjunen, Hannu
  • Honkapuro, Samuli
  • Lassila, Jukka

Abstract

With an increasing share of renewable power in the energy mix, planning of new renewable energy production sites becomes increasingly important. Having geographically highly centralized generation leads to overlapping peaks in generation, which are directly seen in the day-ahead markets as increasing electricity price volatility. By analyzing the impact of added generation on day-ahead prices, optimal sites can be identified that maximize investor revenue and societal savings, helping reduce regional disparities in development. This paper uses wind power estimates based on ERA5 global weather data, together with NordPool price data, to evaluate optimal sites for a new wind farm. The paper discusses the value of dispersed generation and co-planning of future wind farm installations. Cannibalization of the day-ahead market price due to centralized generation is addressed, and it is found that additional wind power capacity in high-capacity areas could cannibalize revenue by 9 €/MWh. The results from the applied methodology show that there are areas where it is possible to generate high revenue while simultaneously providing society great benefit in reduced electricity price for energy users in the day ahead-markets of on average 1.1–1.4 €/MWh over the whole year.

Suggested Citation

  • Salmelin, Markus & Sridhar, Araavind & Karjunen, Hannu & Honkapuro, Samuli & Lassila, Jukka, 2026. "Optimizing wind farm locations for revenue and reduced electricity costs in deregulated electricity markets," Renewable Energy, Elsevier, vol. 256(PH).
    • Handle: RePEc:eee:renene:v:256:y:2026:i:ph:s0960148125021433
    DOI: 10.1016/j.renene.2025.124479
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0960148125021433
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.renene.2025.124479?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

    for a different version of it.

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;

    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:renene:v:256:y:2026:i:ph:s0960148125021433. 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.journals.elsevier.com/renewable-energy .

    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.