The impact of wind generation on the electricity spot-market price level and variance: The Texas experience

Chi-Keung WOO, I. Horowitz, J. Moore*, A. Pacheco

*Corresponding author for this work

    Research output: Contribution to journalJournal articlepeer-review

    264 Citations (Scopus)

    Abstract

    The literature on renewable energy suggests that an increase in intermittent wind generation would reduce the spot electricity market price by displacing high fuel-cost marginal generation. Taking advantage of a large file of Texas-based 15-min data, we show that while rising wind generation does indeed tend to reduce the level of spot prices, it is also likely to enlarge the spot-price variance. The key policy implication is that increasing use of price risk management should accompany expanded deployment of wind generation.

    Original languageEnglish
    Pages (from-to)3939-3944
    Number of pages6
    JournalEnergy Policy
    Volume39
    Issue number7
    DOIs
    Publication statusPublished - Jul 2011

    Scopus Subject Areas

    • Energy(all)
    • Management, Monitoring, Policy and Law

    User-Defined Keywords

    • Electricity price
    • Risk management
    • Wind energy

    Fingerprint

    Dive into the research topics of 'The impact of wind generation on the electricity spot-market price level and variance: The Texas experience'. Together they form a unique fingerprint.

    Cite this