The review ‘Wind Energy and Electricity Prices’, an assessment of studies of the impact of wind energy on electricity prices, was carried out by the independent consultancy Poyry on behalf of EWEA. It brings together the findings of case studies in Germany, Denmark and Belgium.
The report finds in the studies reviewed by Poyry that electricity prices were reduced by between 3 and 23 EUR/MWh depending on the amount of wind power. It concludes that the studies ‘essentially draw similar conclusions’ and that ‘an increased penetration of wind power reduces wholesale spot prices.’
Christian Kjaer, chief executive of EWEA, said: “It has already been well-established that wind reduces CO2 emissions. But now we have stronger evidence than ever before that wind power also reduces electricity prices for consumers. The message is clear – if you want affordable CO2-free electricity, increase the amount of wind power in your electricity mix.”
Wind power replaces CO2-intensive production technologies, the report says. The technology that sets the price on the wholesale market is usually hard coal. Wind replaces hard coal power plants during hours of low demand and gas-fired power plants during hours of high demand in all the countries, the report analyzed.
The report said that wind’s impact comes about because its low marginal costs pushes more expensive technologies, such as gas and thermal plants, out of the market.
