<abstract xmlns="http://www.w3.org/1999/xhtml"><p>The study looks for a correlation between the share of wind power and electricity wholesale prices in the selected regions of the Nordic Baltic power market “Nord Pool Spot”. The aim is to see if and how strong an impact of wind power production has on power market prices. This information would help to perform long-term energy system analysis considering growing wind energy penetration. The actual hourly wind production and power consumption data as well as electricity prices from the year 2019 were used in the analysis. Results of the study revealed that in the analysed dataset there is no correlation between the share of wind power and the power prices, i.e. R-squared value is 0.003 for the Baltic region and 0.0064 for both trading areas of Denmark. In contrast, the R-squared value was almost 0.6 for a positive correlation between power demand and prices. The results mean that expected loss of interest to invest due to falling power prices, as a share of renewable power increases, should be examined more carefully and may not fulfil forecasts of policy makers and industry experts.</p></abstract>

The study looks for a correlation between the share of wind power and electricity wholesale prices in the selected regions of the Nordic Baltic power market “Nord Pool Spot”. The aim is to see if and how strong an impact of wind power production has on power market prices. This information would help to perform long-term energy system analysis considering growing wind energy penetration. The actual hourly wind production and power consumption data as well as electricity prices from the year 2019 were used in the analysis. Results of the study revealed that in the analysed dataset there is no correlation between the share of wind power and the power prices, i.e. R-squared value is 0.003 for the Baltic region and 0.0064 for both trading areas of Denmark. In contrast, the R-squared value was almost 0.6 for a positive correlation between power demand and prices. The results mean that expected loss of interest to invest due to falling power prices, as a share of renewable power increases, should be examined more carefully and may not fulfil forecasts of policy makers and industry experts.

Influence of wind power production on electricity market price

Institute of Energy Systems and Environment

Environmental and Climate Technologies

This work is licensed under the Creative Commons Attribution 4.0 International License.

{"article-title":"Influence of wind power production on electricity market price"}

The study looks for a correlation between the share of wind power and electricity wholesale prices in the selected regions of the Nordic Baltic power market...

Influence of wind power production on electricity market price

Published Online: Jul 08, 2020

Page range: 472 - 482

DOI: https://doi.org/10.2478/rtuect-2020-0029

Keywords
Electricity market, electricity prices, renewable energy sources, wind power

© 2020 Gunars Valdmanis et al., published by Sciendo

This work is licensed under the Creative Commons Attribution 4.0 International License.

Influence of wind power production on electricity market price

Published Online: Jul 08, 2020

Page range: 472 - 482

DOI: https://doi.org/10.2478/rtuect-2020-0029

KeywordsElectricity market, electricity prices, renewable energy sources, wind power

© 2020 Gunars Valdmanis et al., published by Sciendo

This work is licensed under the Creative Commons Attribution 4.0 International License.

Keywords
Electricity market, electricity prices, renewable energy sources, wind power