Do separate bidding zones within countries create imbalances in PV uptake? Evidence from Sweden
This paper estimates how electricity price divergence within Sweden has affected incentives to invest in photovoltaic (PV) generation between 2016 and 2022 based on a synthetic control approach. Sweden is chosen as the research subject since it is the only member of the European Union with multiple...
Published in: | Applied Energy |
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2024
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Online Access: | https://lup.lub.lu.se/record/fb0f890f-9606-41b4-bd79-9a61f73ad283 https://doi.org/10.1016/j.apenergy.2024.123934 |
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ftulundlup:oai:lup.lub.lu.se:fb0f890f-9606-41b4-bd79-9a61f73ad283 2024-09-15T18:26:08+00:00 Do separate bidding zones within countries create imbalances in PV uptake? Evidence from Sweden Fink, Johanna 2024-11 https://lup.lub.lu.se/record/fb0f890f-9606-41b4-bd79-9a61f73ad283 https://doi.org/10.1016/j.apenergy.2024.123934 eng eng Elsevier https://lup.lub.lu.se/record/fb0f890f-9606-41b4-bd79-9a61f73ad283 http://dx.doi.org/10.1016/j.apenergy.2024.123934 scopus:85199679116 Applied Energy; 374, no 123934 (2024) ISSN: 0306-2619 Energy Systems Bidding zone Electric tariff PV generation Solar energy contributiontojournal/article info:eu-repo/semantics/article text 2024 ftulundlup https://doi.org/10.1016/j.apenergy.2024.123934 2024-08-28T00:10:42Z This paper estimates how electricity price divergence within Sweden has affected incentives to invest in photovoltaic (PV) generation between 2016 and 2022 based on a synthetic control approach. Sweden is chosen as the research subject since it is the only member of the European Union with multiple bidding zones (BZ) that faces dramatic price divergence between low-tariff BZ in Northern and high-tariff BZ in Southern Sweden since 2020. The results indicate that PV uptake in municipalities located north of the BZ border is reduced by 40.9%–48% compared to their Southern counterparts, reinforcing existing imbalances in PV uptake and impeding renewable energy investments in the low-tariff BZ. While this is less of a concern in Northern Sweden were additional potential for PV generation is limited and most electricity is sourced from hydropower, these findings have important implication for countries with pre-existing imbalances or low shares of renewables in their electricity mix such as Germany and the Czech Republic. Since investments are channeled to high-tariff BZ, capacities in low-tariff areas are underutilized which might hinder a successful transition towards renewable generation. Hence, unused potential fore renewable generation should be carefully considered when designing bidding zone borders. Article in Journal/Newspaper Northern Sweden Lund University Publications (LUP) Applied Energy 374 123934 |
institution |
Open Polar |
collection |
Lund University Publications (LUP) |
op_collection_id |
ftulundlup |
language |
English |
topic |
Energy Systems Bidding zone Electric tariff PV generation Solar energy |
spellingShingle |
Energy Systems Bidding zone Electric tariff PV generation Solar energy Fink, Johanna Do separate bidding zones within countries create imbalances in PV uptake? Evidence from Sweden |
topic_facet |
Energy Systems Bidding zone Electric tariff PV generation Solar energy |
description |
This paper estimates how electricity price divergence within Sweden has affected incentives to invest in photovoltaic (PV) generation between 2016 and 2022 based on a synthetic control approach. Sweden is chosen as the research subject since it is the only member of the European Union with multiple bidding zones (BZ) that faces dramatic price divergence between low-tariff BZ in Northern and high-tariff BZ in Southern Sweden since 2020. The results indicate that PV uptake in municipalities located north of the BZ border is reduced by 40.9%–48% compared to their Southern counterparts, reinforcing existing imbalances in PV uptake and impeding renewable energy investments in the low-tariff BZ. While this is less of a concern in Northern Sweden were additional potential for PV generation is limited and most electricity is sourced from hydropower, these findings have important implication for countries with pre-existing imbalances or low shares of renewables in their electricity mix such as Germany and the Czech Republic. Since investments are channeled to high-tariff BZ, capacities in low-tariff areas are underutilized which might hinder a successful transition towards renewable generation. Hence, unused potential fore renewable generation should be carefully considered when designing bidding zone borders. |
format |
Article in Journal/Newspaper |
author |
Fink, Johanna |
author_facet |
Fink, Johanna |
author_sort |
Fink, Johanna |
title |
Do separate bidding zones within countries create imbalances in PV uptake? Evidence from Sweden |
title_short |
Do separate bidding zones within countries create imbalances in PV uptake? Evidence from Sweden |
title_full |
Do separate bidding zones within countries create imbalances in PV uptake? Evidence from Sweden |
title_fullStr |
Do separate bidding zones within countries create imbalances in PV uptake? Evidence from Sweden |
title_full_unstemmed |
Do separate bidding zones within countries create imbalances in PV uptake? Evidence from Sweden |
title_sort |
do separate bidding zones within countries create imbalances in pv uptake? evidence from sweden |
publisher |
Elsevier |
publishDate |
2024 |
url |
https://lup.lub.lu.se/record/fb0f890f-9606-41b4-bd79-9a61f73ad283 https://doi.org/10.1016/j.apenergy.2024.123934 |
genre |
Northern Sweden |
genre_facet |
Northern Sweden |
op_source |
Applied Energy; 374, no 123934 (2024) ISSN: 0306-2619 |
op_relation |
https://lup.lub.lu.se/record/fb0f890f-9606-41b4-bd79-9a61f73ad283 http://dx.doi.org/10.1016/j.apenergy.2024.123934 scopus:85199679116 |
op_doi |
https://doi.org/10.1016/j.apenergy.2024.123934 |
container_title |
Applied Energy |
container_volume |
374 |
container_start_page |
123934 |
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1810466592755023872 |