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.
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This analysis is a contribution to the ongoing assessment of the impact of zero fuel-cost, variable but predictable renewables such as wind and PV on the market price of electricity in Europe. It will be shown that the largest installed base of wind and PV in Europe, Germany (around 30 GW of wind and 30 GW of PV in mid-2012), already has a direct impact on the European Electricity Index (ELIX). This index is chosen for this analysis as it has since 2010 simulated the future of a truly integrated European power market on a daily basis. It is currently calculated based on national market prices in Germany/Austria, Switzerland and France
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Source.. Dirk De Vos
