Intermittency and Uncertainty in Wind and Solar Energy: Impacts on the French Electricity Market

Abstract

Renewable energy technologies are critical to reducing greenhouse gas emissions from the electricity sector. However, intermittency and uncertainty of renewable energy sources create challenges for the operation of electricity grids and markets. We analyze the impacts of intermittency and uncertainty from wind and solar energy in a novel setting: the French electricity market. We find that these characteristics affect the intraday wholesale electricity price in unique ways. Moreover, market-specific characteristics, including interconnections with neighboring markets and the conventional generation mix, impact the magnitude of these price effects.

Keywords: Wholesale electricity market, renewable energy, renewable intermittency and uncertainty, electricity price, electricity transmission, conventional generation