Journal
UTILITIES POLICY
Volume 56, Issue -, Pages 159-168Publisher
ELSEVIER SCI LTD
DOI: 10.1016/j.jup.2019.01.001
Keywords
Electricity interactions; Capacity payments; Feed-in system; Market price; ARDL approach; Spain
Funding
- NECE-UBI Research Unit in Business Science and Economics [UID/GES/04630/2013]
- Portuguese Foundation for the Development of Science and Technology
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This research aims to analyse the impact of feed-in tariffs, feed-in premiums, and capacity payments on electricity generation by source. It also assesses their consequences for interactions between electricity sources, while considering the market price. Monthly data for Spain, from January of 2010 to February of 2017, and the Autoregressive Distributed Lag approach were used. The results reveal that both feed-in tariffs and feed-in premiums appear to contribute negatively to electricity production from wind. Capacity payments appear to encourage fuel and natural gas producers to bid low and increase electricity production from renewable resources.
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