Influence of wind power production on electricity market price

The study looks for a correlation between the share of wind power and electricity wholesale prices in the selected regions of the Nordic Baltic power market “Nord Pool Spot”. The aim is to see if and how strong an impact of wind power production has on power market prices. This information would help to perform long-term energy system analysis considering growing wind energy penetration. The actual hourly wind production and power consumption data as well as electricity prices from the year 2019 were used in the analysis. Results of the study revealed that in the analysed dataset there is no correlation between the share of wind power and the power prices, i.e. R-squared value is 0.003 for the Baltic region and 0.0064 for both trading areas of Denmark. In contrast, the R-squared value was almost 0.6 for a positive correlation between power demand and prices. The results mean that expected loss of interest to invest due to falling power prices, as a share of renewable power increases, should be examined more carefully and may not fulfil forecasts of policy makers and industry experts.