Author: Stringer, Thomas; Joanis, Marcelin; Abdoli, Shiva
Description: Electricity prices are influenced by the composition of the power generation mix. Firms that operate in sectors that are energy-intensive, such as manufacturing, metallurgy or oil and gas, are vulnerable to variations in electricity price. Everyday citizens, faced with increasing costs of living, also experience a strain on their finances when electricity prices rise. As many countries move towards a net-zero energy transition, energy policy enacted to change the power generation mix of electricity markets is under increased scrutiny. Little research has evaluated both the effect of all modes on electricity price and the interactions between the modes in the context of a competitive electricity market. Using hourly data from the Canadian province of Ontario between 2015 and 2022, we examine the effect of the variation in outputs of the different modes of electricity generation in a competitive electricity market. We find that increased solar and wind electricity production induces lower electricity prices.
Subject headings: Electricity price; Energy mix; Sustainability; Renewable energy; Energy policy; Solar; Wind
Publication year: 2024
Journal or book title: Renewable Energy
Volume: 221
Pages: 119761
Find the full text: https://www.sciencedirect.com/science/article/abs/pii/S0960148123016762
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Serial number: 4185