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.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
