Cross-border solar panels

4 FAQs about [Cross-border solar panels]

Will a new cross-border interconnector raise electricity prices?

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.

How do we isolate cross-border effects of renewable market penetration?

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.

What is the role of cross-border interconnector capacity?

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.

What is the correlation between solar penetration per bidding zone?

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.

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