Self-Reinforcing Electricity Price Dynamics under the Variable Market Premium Scheme

We report a potential self-reinforcing design flaw in the variable market premium scheme that occurs if variable renewable energy power plants receiving a premium become price-setting in the market. A high share of renewable energy is a goal of many countries on their transformation path to a sustai...

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Bibliographic Details
Main Authors: Ulrich J. Frey, Martin Klein, Kristina Nienhaus, Christoph Schimeczek
Format: Article
Language:English
Published: MDPI AG 2020-10-01
Series:Energies
Subjects:
Online Access:https://www.mdpi.com/1996-1073/13/20/5350