Percorrer por autor "Ferreira, Mariana Barros"
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- Are Investments in Renewable Energy Sources Effective in Reducing Electricity Prices?Publication . Ferreira, Mariana Barros; Marques, António Manuel Cardoso; Macedo, Daniela PereiraIn recent years, investments in renewable energy sources (RES) have grown substantially, largely driven by policy incentives and decarbonisation targets. However, given the intermittent nature of these sources, they cannot fulfil market demand at some hours of the day, which implies that fossil fuel energy sources still have a prominent role in ensuring the resilience of electricity markets. Notwithstanding, the current energy transition has been targeting the decline of investments in fossil-fuel electricity production structures and significant investments in renewable energy technologies. This study focuses on the impact of the investments in renewable energy by source, namely solar photovoltaic (PV) and wind power on the wholesale electricity price. The investment variables are assessed through two distinct proxies: the number of patents and public investments. Accordingly, two separate models using the Feasible Generalised Least Squares (FGLS) estimator were employed in a panel of 7 European Union (EU) countries, encompassing monthly data from January 2015 to December 2022. Empirical evidence indicates that the number of patents in solar PV power decreases wholesale electricity prices. Conversely, public investments in solar PV power increase them. Furthermore, the electricity generation from hydropower reduces electricity prices in both models. This study highlights the necessity for a more balanced investment strategy that not only fosters renewable energy but also ensures system flexibility.