Firm consolidation through mergers and acquisitions could be a strategic option for the electricity industry which has recently witnessed several transformations such as renewable integration and regulatory changes. This study uses a Cournot oligopoly model to examine the profitability of electric utility mergers in the presence of distributed renewable energy sources. We introduce two sector specific parameters that influence merger profitability: the rate at which renewable energy raises the marginal grid integration cost and the extent to which renewable energy reduces pollution intensity. Our model predicts that an increase in the first parameter reduces the profitability of profitable mergers while an increase in the latter increases the profitability of profitable mergers. We find that due to the strategic substitutability between renewable and non-renewable energy, an increase in energy produced from distributed sources reduces the profitability of profitable mergers and reduces losses from unprofitable mergers. Furthermore, we show that the variability in electricity produced from renewable sources induces utilities to produce more exacerbating the extent that extra renewable energy affects merger profitability. Results from the theoretical model are illustrated by simulating a hypothetical merger among investor-owned utilities in the PJM market.

通过并购进行企业整合可能是电力行业的战略选择，电力行业最近见证了可再生能源整合和监管变化等多项转型。本研究使用古诺寡头垄断模型来检验在分布式可再生能源存在的情况下电力公司合并的盈利能力。我们引入了两个影响合并盈利能力的行业特定参数：可再生能源提高边际电网整合成本的速度以及可再生能源降低污染强度的程度。我们的模型预测，第一个参数的增加会降低盈利合并的盈利能力，而后者的增加会增加盈利合并的盈利能力。我们发现，由于可再生能源和不可再生能源之间的战略可替代性，分布式能源生产的增加降低了有利可图合并的盈利能力，并减少了无利可图合并的损失。此外，我们表明可再生能源发电的可变性促使公用事业公司生产更多可再生能源影响合并盈利能力的程度。通过模拟 PJM 市场中投资者拥有的公用事业公司之间的假设合并来说明理论模型的结果。我们表明，可再生能源发电的可变性促使公用事业公司生产更多可再生能源，从而加剧了额外可再生能源对合并盈利能力的影响。通过模拟 PJM 市场中投资者拥有的公用事业公司之间的假设合并来说明理论模型的结果。我们表明，可再生能源发电的可变性促使公用事业公司生产更多可再生能源，从而加剧了额外可再生能源对合并盈利能力的影响。通过模拟 PJM 市场中投资者拥有的公用事业公司之间的假设合并来说明理论模型的结果。