More wind power implies less intra-day price variability
Wind power has become an increasingly important source of electricity production around the world. Wind power is a volatile source of energy as it only delivers power when the wind blows. Hence, additional wind power will impact the average price as well as price volatility. This is one of the first empirical studies on the effects of wind power on the price variability of electricity and is based upon data from Denmark. Surprisingly, more wind leads to less intra-day price variability. This result probably is due to wind power cutting price spikes at peak hours.