The Impact of Variable Renewable Energy Penetration on Wholesale Electricity Prices in Japan Between FY 2016 and 2019

The merit order effect (MOE), which renewable energy sources can decrease wholesale electricity prices, plays an important role in establishing low-carbon societies. After the liberalization of the electricity market, the trade volume of the Japan Electric Power Exchange (JEPX) day-ahead spot market...

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Autores principales:	Makishi Sakaguchi, Hidemichi Fujii
Formato:	article
Lenguaje:	EN
Publicado:	Frontiers Media S.A. 2021
Materias:	merit order effect wholesale electricity market renewable energy Japan electricity price Economic theory. Demography HB1-3840
Acceso en línea:	https://doaj.org/article/c71d84106dc1455e9919aa4cdd23ad36
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spelling	oai:doaj.org-article:c71d84106dc1455e9919aa4cdd23ad362021-12-01T19:55:08ZThe Impact of Variable Renewable Energy Penetration on Wholesale Electricity Prices in Japan Between FY 2016 and 20192673-452410.3389/frsus.2021.770045https://doaj.org/article/c71d84106dc1455e9919aa4cdd23ad362021-11-01T00:00:00Zhttps://www.frontiersin.org/articles/10.3389/frsus.2021.770045/fullhttps://doaj.org/toc/2673-4524The merit order effect (MOE), which renewable energy sources can decrease wholesale electricity prices, plays an important role in establishing low-carbon societies. After the liberalization of the electricity market, the trade volume of the Japan Electric Power Exchange (JEPX) day-ahead spot market drastically increased between 2016 and 2019; however, price spikes still occur often. Ordinary least squares and quantile regression analyses were applied in this study to investigate how wind and solar photovoltaics (PV) energy generation affect the JEPX day-ahead spot price by time, price range, and area, and we concluded that the MOE of wind increased between 2016 and 2019 while that of PV decreased during this time. In regard to the high price ranges, although wind generation is not significant in terms of reducing price spikes, PV had this effect in 2016 and 2017 but not during the other years covered. The study area was divided into four regions, and each area followed trends that were different from those of the national analysis. Overall, the key finding of our study is that wind power has more potential to reduce electricity prices than PV.Makishi SakaguchiHidemichi FujiiFrontiers Media S.A.articlemerit order effectwholesale electricity marketrenewable energyJapanelectricity priceEconomic theory. DemographyHB1-3840ENFrontiers in Sustainability, Vol 2 (2021)
institution	DOAJ
collection	DOAJ
language	EN
topic	merit order effect wholesale electricity market renewable energy Japan electricity price Economic theory. Demography HB1-3840
spellingShingle	merit order effect wholesale electricity market renewable energy Japan electricity price Economic theory. Demography HB1-3840 Makishi Sakaguchi Hidemichi Fujii The Impact of Variable Renewable Energy Penetration on Wholesale Electricity Prices in Japan Between FY 2016 and 2019
description	The merit order effect (MOE), which renewable energy sources can decrease wholesale electricity prices, plays an important role in establishing low-carbon societies. After the liberalization of the electricity market, the trade volume of the Japan Electric Power Exchange (JEPX) day-ahead spot market drastically increased between 2016 and 2019; however, price spikes still occur often. Ordinary least squares and quantile regression analyses were applied in this study to investigate how wind and solar photovoltaics (PV) energy generation affect the JEPX day-ahead spot price by time, price range, and area, and we concluded that the MOE of wind increased between 2016 and 2019 while that of PV decreased during this time. In regard to the high price ranges, although wind generation is not significant in terms of reducing price spikes, PV had this effect in 2016 and 2017 but not during the other years covered. The study area was divided into four regions, and each area followed trends that were different from those of the national analysis. Overall, the key finding of our study is that wind power has more potential to reduce electricity prices than PV.
format	article
author	Makishi Sakaguchi Hidemichi Fujii
author_facet	Makishi Sakaguchi Hidemichi Fujii
author_sort	Makishi Sakaguchi
title	The Impact of Variable Renewable Energy Penetration on Wholesale Electricity Prices in Japan Between FY 2016 and 2019
title_short	The Impact of Variable Renewable Energy Penetration on Wholesale Electricity Prices in Japan Between FY 2016 and 2019
title_full	The Impact of Variable Renewable Energy Penetration on Wholesale Electricity Prices in Japan Between FY 2016 and 2019
title_fullStr	The Impact of Variable Renewable Energy Penetration on Wholesale Electricity Prices in Japan Between FY 2016 and 2019
title_full_unstemmed	The Impact of Variable Renewable Energy Penetration on Wholesale Electricity Prices in Japan Between FY 2016 and 2019
title_sort	impact of variable renewable energy penetration on wholesale electricity prices in japan between fy 2016 and 2019
publisher	Frontiers Media S.A.
publishDate	2021
url	https://doaj.org/article/c71d84106dc1455e9919aa4cdd23ad36
work_keys_str_mv	AT makishisakaguchi theimpactofvariablerenewableenergypenetrationonwholesaleelectricitypricesinjapanbetweenfy2016and2019 AT hidemichifujii theimpactofvariablerenewableenergypenetrationonwholesaleelectricitypricesinjapanbetweenfy2016and2019 AT makishisakaguchi impactofvariablerenewableenergypenetrationonwholesaleelectricitypricesinjapanbetweenfy2016and2019 AT hidemichifujii impactofvariablerenewableenergypenetrationonwholesaleelectricitypricesinjapanbetweenfy2016and2019
_version_	1718404596832927744

The Impact of Variable Renewable Energy Penetration on Wholesale Electricity Prices in Japan Between FY 2016 and 2019

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