German wind and PV lower European market power prices
In countries with a large penetration rate of zero fuel cost renewables (wind power in Denmark and Spain, wind and PV in Germany), the “merit-order effect” (avoiding the most costly means of power production to cover peak loads) is already well documented. In this article, French expert Bernard Chabot shows how the penetration rate of combined wind and PV production in Germany already lowers the European Electricity Index (ELIX) for electricity markets in Germany/Austria, France and Switzerland.
This article is available as a PDF. (Craig Morris)