It is true that electricity sold with a feed-in tariff caps the increase of market prices in peak periods, if that increase would otherwise exceed the feed-in tariff. When makret prices would stay below, of course it does the opposite. Either way, why do you want a disincentive in peak periods?
it is important that wind energy be used before that back-up from coal and the like is called in.
As I said two times now, a feed-in law does just that by obligating distributors to buy the wind electricity. That creates a priority, the other producers are forced to throttle production in high wind. That's exactly what happens in Spain and Northern Germany.
a feed in tariff (subsidy)
To expand on why there should be no equation: a feed-in tariff is a guaranteed purchase price. You can at best consider the difference between the tariff and the momentary market price the subsidy. (And it can actually be negative.) But even that is not really a subsidy, because in the end, it is not something paid from a public or private budget, but costs are spread out to customers (or eating away the profits of other producers). *Lunatic*, n. One whose delusions are out of fashion.
a feed in tariff (subsidy) To expand on why there should be no equation: a feed-in tariff is a guaranteed purchase price. You can at best consider the difference between the tariff and the momentary market price the subsidy. (And it can actually be negative.) But even that is not really a subsidy, because in the end, it is not something paid from a public or private budget, but costs are spread out to customers (or eating away the profits of other producers).
To expand on why there should be no equation: a feed-in tariff is a guaranteed purchase price. You can at best consider the difference between the tariff and the momentary market price the subsidy. (And it can actually be negative.) But even that is not really a subsidy, because in the end, it is not something paid from a public or private budget, but costs are spread out to customers (or eating away the profits of other producers).
Given that wind power lowers the marginal price when it blows, there is a merit order effect of supporting wind, which reduces prices for all producers at that time and creates savings for consumers. The aggregate value of that merit order effect has been measured in Denmark, Germany and Spain and is now larger than the net subsidy from the feed-in tariff.
In other words, the so-called "subsidy" to wind actually brings prices down for consumers! In the long run, we're all dead. John Maynard Keynes
Note that if "imports and exports balance" is key to making even the green argument: Norway has no significant fossil generation and will not build any under any circumstances, so net exports merely displace norwegian investment in carbon neutral power, which is not a gain, since the danish power sector is overall the worst CO2 emitter in europe.
Which is as it should be, given that DK incumbents are largely coal-based. In the long run, we're all dead. John Maynard Keynes
