Prof. Erik Johnson publishes article on the effects of more renewables on electricity prices
Carthage economics professor Erik Johnson has published a new article in The Energy Journal titled, “Renewable Generation Capacity and Wholesale Electricity Price Variance.” The article examines the effects of integrating more wind and solar into an electricity grid on electricity markets.
Using comprehensive data from 1990 to 2012 on nearly all of the developed world, Prof. Johnson examined how electricity prices changed over that time period. The article demonstrates theoretically and empirically that while electricity prices have fallen because of new wind and solar, the volatility of electricity prices has actually risen as wind and solar have been incorporated into the electricity grid. This effect is likely to become more pronounced as more wind and solar are adopted in the United States and globally.