A special study on behalf of ELETAEN was prepared by the specialized company iWind Renewables. The study quantifies the benefit that renewables have created to consumers in 2021 due to the reduction in the market price they caused. This benefit is particularly important in the midst of the energy crisis.
The energy crisis is putting pressure on households and the economy. Dependence on fossil fuels has increased electricity bills, especially since the summer due to the multiplication of the price of gas.
In this situation, wind and photovoltaic energy remain cheap and thus become an ally of the citizens.
Wind and photovoltaic parks relieve consumers in two ways:
- They create a financial surplus which allows the transfer of funds to the Energy Transition Fund to subsidize the accounts. The surplus is due to the difference between (a) the wholesale electricity market price which is high due to fossil fuels, and (b) the consistently low cost of wind energy.
- They reduce the price in the wholesale electricity market (ie the so-called system marginal price or the next day price). This is because the wind and the sun are free and so the renewables lead to the extinction of the most expensive conventional production units every hour. So the consumer pays less for his total electricity.
This second benefit is documented and quantified for 2021 with the study prepared for ELETAEN by iWind.
The analysis proves the following:
A] In periods of high penetration of wind and photovoltaic in the electrical system, the price in the wholesale electricity market decreases significantly.
For example, in December 2021:
an increase of 10% of the penetration of wind and photovoltaic energy in the system led to a reduction of the price by an average of 40 € / MWh.
increase by 10% of the penetration of RES variables, wind and photovoltaic together, led to a reduction of the price by an average of 34 € / MWh.
B] Wind and photovoltaic reduced the market price on average in 2021 by € 46 / MWh.
Especially for December 2021 the reduction was 81 € / MWh. The results of December are in agreement with the corresponding results of the research team of AUTh that were recently announced by RIS, although a different methodology was used.
Considering that the energy that would not have been produced by RES. would have been covered by imported natural gas, the above reduction for 2021 implies that the total savings in the wholesale market is 2.5 billion euros thanks to RES. This means that if RES did not exist, suppliers would have had to pay more 2.5 billion euros for the energy market, how much they would have passed on to consumers. This amount is 4 times higher than the regulated ETMEAR fee.
The conclusion is:
We need more wind and photovoltaic parks, storage, smart grids and energy savings. This benefits the consumer and the competitiveness of our economy. And of course it enhances energy independence.