Many countries are adding substantial capacities of wind- and solar-based power generation to their portfolios. While ownership of conventional capacities is typically concentrated, renewable energy (RES) is often provided by new, independent producers. Hence, one might expect competitive pressure to increase as RES production is ramped up. However, the best locations for RES are often…
Tag: Market power
Market Power and Generation from Renewables: the Case of Wind in the South Australian Electricity Market
This paper examines whether outcomes in the electricity market in South Australia are consistent with theoretical analysis and market modelling that concluded that intermittent generation benefits less from market power than conventional generation. The paper finds that, based on actual outcomes in South Australia over the period from 2006 to 2011, the exercise of market…