The impact of renewable energy sources on the Portuguese electricity prices

• Autor(a) principal: Rodrigues, Pedro Afonso Leitão Ventura de Sousa
• Data de Publicação: 2020
• Tipo de documento: Dissertação
• Idioma: eng
• Título da fonte: Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)
• Texto Completo: http://hdl.handle.net/10400.6/10869
• topic: Efeito de Ordem de Mérito; Fontes de Energias Renováveis; Garch; Portugal; Preço da Eletricidade; Domínio/Área Científica::Ciências Sociais::Economia e Gestão

The Renewable Energy Sources (RES) have been treated as a key instrument to accomplish the international energy goals without compromising the sustainable development of each country and the humankind wellbeing. However, the effects that the penetration of RES have on electricity prices must be considered. The Merit order Effect (MOE) is the expected reduction of the wholesale electricity prices caused by the penetration of the RES. This study quantifies the MOE in Portugal, for the years of 2009 to 2018. The data frequency is monthly, and the applied methodology was a GARCH (2,1). Additionally, the expected savings in the wholesale prices are compared to the expected costs in the retail prices, in order to see if the RES penetration translates into a benefit or a cost to the end consumer. The findings suggest a MOE of 21,24€/MWh which translates into a €1,93 billion savings for the consumer during the years of 2009 to 2018.