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

@inproceedings{Woo2015TheIO,
  title={The impact of wind generation on the electricity spot-market price level and variance : The Texas experience},
  author={Chi-Keung Woo and Ira Horowitz and James Moore and Alexia Pacheco},
  year={2015}
}
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… CONTINUE READING
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