Impact of Renewables¶
Electricity Cost Structure¶
- Electricity Generation
- Electricity Transport/Transmission
- Taxes
IDK¶
The forecasts of renewable energy generation is what drives the prices, not the actual generation
Wind acts as a stochastic driver since having the lowest short-run marginal cost, with quantiles based on forecasts (13-37 hrs ahead)
Higher (forecasted) production of renewable energy \(\implies\) lower energy price