National regulators and policy makers deciding on the approval of a new cross-border interconnector might be faced with a trade-off: While wind and solar generators in net-exporting markets can capture higher prices because of more interconnection, consumers in those markets might face higher prices because of a new interconnector.
To isolate cross-border effects, we control for other features of electricity systems that moderate the effect of renewable market penetration on its market value, such as flexible hydroelectricity. We address endogeneity issues by using capacity, rather than energy, values for various variables.
The role of cross-border interconnector capacity is two-fold, in the sense that it mitigates the negative effect of domestic market penetration but exacerbates the effects of neighboring market penetration.
The correlation of hourly (monthly) domestic and neighboring solar penetration per bidding zone is 0.88 (0.90). For onshore wind it is 0.60 (0.75) on an hourly (monthly) level.
Our standardized photovoltaic power generation and energy storage products are engineered for reliability, safety, and efficient deployment. All systems include comprehensive monitoring and control systems with remote management capabilities.
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