The merit order effect of photovoltaic generation in Slovakia
| Thesis title in Czech: | Efekt pořadí záslužnosti ve výrobě fotovoltaické energie na Slovensku |
|---|---|
| Thesis title in English: | The merit order effect of photovoltaic generation in Slovakia |
| Key words: | obnoviteľné zdroje energie, fotovoltaika, efekt poradia záslužnosti, dotácie v energetike, výkupná cena |
| English key words: | renewable energy sources, photovoltaics, merit order effect, energy subsidies, feed-in tariff |
| Academic year of topic announcement: | 2014/2015 |
| Thesis type: | Bachelor's thesis |
| Thesis language: | angličtina |
| Department: | Institute of Economic Studies (23-IES) |
| Supervisor: | prof. Ing. Karel Janda, Dr., Ph.D., M.A. |
| Author: | hidden - assigned by the advisor |
| Date of registration: | 05.06.2015 |
| Date of assignment: | 05.06.2015 |
| Date and time of defence: | 13.06.2017 08:00 |
| Venue of defence: | IES |
| Date of electronic submission: | 19.05.2017 |
| Date of proceeded defence: | 13.06.2017 |
| Opponents: | PhDr. Ondřej Filip |
| URKUND check: | |
| References |
| 1) Stefano Clo, Alessandra Cataldi, and Pietro Zoppoli. The merit-order effect in the Ital-
ian power market: The impact of solar and wind generation on national wholesale electricity prices. Energy Policy, 77:79-88, 2015. 2) Johanna Cludius, Hauke Hermann, Felix Matthes, and Verena Graichen. The merit order effect of wind and photovoltaic electricity generation in Germany 2008-2016: Estimation and distributional implications. Energy Economics, 44:302-313, 2014b. 3) Liliana Gelabert, Xavier Labandeira, and Pedro Linares. An ex-post analysis of the effect of renewables and cogeneration on Spanish electricity prices. Energy Economics, 33: S59-S65, 2011. 4) Amy O'Mahoney and Eleanor Denny. The Merit Order Effect of Wind Generation on the Irish Electricity Market. Munich Personal RePEc Archive, 2011. 5) RONI. Porovnanie podpory OZE a vykupnych cien elektriny vyrobenej z OZE v okolitych krajinach. Technical report, Regulatory Office for Network Industries Slovakia, 2014. 6) Klaas Wurzburg, Xavier Labandeira, and Pedro Linares. Renewable generation and electricity prices: Taking stock and new evidence for Germany and Austria. Energy Economics, 40:S159-S171, 2013. |
| Preliminary scope of work in English |
| Renewable energy is generally defined as coming from natural sources that are continually and sustainably replenished. Photovoltaics are classified as renewable energy source since the principle rests on converting solar radiation into direct current electricity. It is a way how to create cost-effective and pollution free energy without using fossil fuels, producing greenhouse gases or radioactive or toxic waste.
The issue of renewable sources of energy becomes more and more important due to the commitment of European Union to increase the share of renewable energy in gross final energy consumption. The target desired to reach until 2020 is set at 14% for Slovakia whereas for the European Union the percentage is set at 20%. Use of solar energy for producing electricity in Slovakia was at a low level after the entry into the European Union because of high investment costs of building photovoltaic plants. After the decision of the Regulatory Office for Network Industries from the year 2008 concerning the support of electricity production in photovoltaic plants and establishing a guaranteed fixed feed-in tariff the interest in solar energy raised. Thanks to the increased demand for renewable energy sources, the construction of photovoltaic cells and arrays has advanced significantly and costs have decreased. Prices of electricity on the spot market have dropped notably due to greater employment of the photovoltaics which is described as the merit order effect. The purpose of this bachelor thesis is to assess this phenomenon, i.e. to evaluate the impact of the solar penetration to energy mix on spot prices. The merit order effect will be estimated through an OLS model using available time series data and approximate savings calculated. Furthermore, the author aims to study the evolution of guaranteed feed-in tariff and the overall generous governmental support of renewable energy sources. To conclude, the author would like to comment on whether the costs of such support of the renewables are offset by the savings caused by the merit order effect and on the final consumer benefit or loss. 1) Introduction 2) Photovoltaics in Slovakia 3) Merit Order Effect 4) Literature Review 5) Data and Methodology 6) Results 7) Conclusion |