The cannibalization effect of wind and solar in the California wholesale electricity market
Abstract
Increasing penetration of zero marginal cost variable renewable technologies cause the decline of wholesale electricity prices due to the merit-order effect. This causes a “cannibalization effect” through which increasing renewable technologies’ penetration undermines their own value. We calculate solar and wind daily unit revenues (generation weighted electricity prices) and value factors (unit revenues divided by average electricity prices)...
Paper Details
Title
The cannibalization effect of wind and solar in the California wholesale electricity market
Published Date
Jan 1, 2020
Journal
Volume
85
Pages
104552 - 104552
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