Reports
23 June 2021

Assessing the impact of wind and solar energy on power prices

In this study we assess the hypothesis that higher shares of wind and solar energy in the power mix result in lower power prices and higher weather induced power price volatility

Executive summary

The variable costs associated with solar and wind energy are very small in comparison to traditional energy sources that typically burn fuel to generate (thermal) power. Therefore, the production of solar and wind energy is associated with lower power prices in the short-term. We assessed the statistical significance of this effect using weekly and monthly data from five different European countries. 

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