Abstract: Adding renewable energy sources (RES) to an electricity market has an ambiguous effect on wholesale prices. The merit order effect (MoE) has a downward pressure on prices while, with market power, higher inframarginal rents will tend to increase prices. We quantify the interaction of the two effects in the Ontario electricity market. We identify the market power effect by simulating transfers of RES capacity from the fringe to larger firms: these transfers increase prices by up to 24%. We then add RES capacity and allocate it to players with varying levels of market power. Following a net expansion of RES capacity of 5% relative to total capacity, prices decrease by 30% when new capacity is assigned to the fringe, but only by 7% when assigned to the largest firm. Our findings show that the MoE is largely mitigated by market power, hence the importance of the market structure in the design of uniform incentives for RES adoption.

中文翻译：

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市场力量和可再生能源：所有权转移的影响

摘要：向电力市场添加可再生能源 (RES) 对批发价格的影响不明确。优先顺序效应 (MoE) 对价格有下行压力，而在市场力量的作用下，较高的超边际租金将倾向于提高价格。我们量化了安大略电力市场中这两种效应的相互作用。我们通过模拟可再生能源产能从边缘到大公司的转​​移来确定市场力量效应：这些转移使价格提高了 24%。然后我们增加 RES 容量并将其分配给具有不同市场力量水平的参与者。RES 产能相对于总产能净扩张 5% 后，当新产能分配给边缘公司时，价格下降 30%，但分配给最大公司时仅下降 7%。我们的研究结果表明，教育部在很大程度上受到市场力量的影响，