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Assessment of RES technology market values and the merit-order effect – an econometric multi-country analysis


  • Marijke Welisch
  • André Ortner
  • Gustav Resch


This study presents an assessment of both the merit-order effect and the market values of electricity generated from variable renewable energy sources, namely wind and solar photovoltaics. The historical price development in several European countries – that cover 73% of the renewable energy source share in Europe’s regional electricity markets – has been taken into account. To gain insights into the impact of renewable electricity on prices, market values and the merit-order effect were calculated using a multivariate regression analysis and ex-post calculations. All the countries analyzed show a consistent, negative impact of renewable electricity on electricity spot market prices and a decreasing market value of renewable energy source, possibly attributable to increased shares. The coefficients are economically and statistically significant. This study provides insights into a large geographical spread of European electricity markets, enables a comparison between countries, and therefore has valuable implications for policy makers.

Suggested Citation

  • Marijke Welisch & André Ortner & Gustav Resch, 2016. "Assessment of RES technology market values and the merit-order effect – an econometric multi-country analysis," Energy & Environment, , vol. 27(1), pages 105-121, February.
  • Handle: RePEc:sae:engenv:v:27:y:2016:i:1:p:105-121

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    Cited by:

    1. repec:eee:enepol:v:106:y:2017:i:c:p:138-147 is not listed on IDEAS
    2. Luňáčková, Petra & Průša, Jan & Janda, Karel, 2017. "The merit order effect of Czech photovoltaic plants," Energy Policy, Elsevier, vol. 106(C), pages 138-147.


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