Welcome to European Tribune. It's gone a bit quiet around here these days, but it's still going.
but the EWEA has come up with a rather relevant study:

Exploring the 'merit order effect'

The new literature review, prepared for EWEA by energy consultants Pöyry, shows that adding wind energy into the power mix has a significant influence on the resulting price of electricity - the so-called merit order effect (MOE) - whilst at the same time reducing CO2 emissions. The literature review brings together, for the first time, the findings of case-studies in Germany, Denmark and Belgium.

Click here to download the full report in PDF.

This is a factoid that I've been pushing here on ET for close to 2 years, and which I have lobbied EWEA to publicize more; I don't know if this publication is linked to my efforts, but I'll claim credit anyway!


What this means is that the "cost" of the subsidy (which, btw, is borne by electricity users, not by tax payers, so the budget restrictions  argument is bunk) needs to be reduced by the merit order effect, ie the lower power prices, for consumers caused by the injection of zero-marginal-cost renewables in the system...

Wind power

by Jerome a Paris (etg@eurotrib.com) on Thu Apr 22nd, 2010 at 12:19:06 PM EST
There is always one more thing to know, one more factor to put in the spreadsheet. I'm glad my knowledge base has now gotten to the point of understanding this factor Jerome, since my ignorance had blinded me any of your previous mentions of it.

Thanks for the link to the report.

Never underestimate their intelligence, always underestimate their knowledge.

Frank Delaney ~ Ireland

by siegestate (siegestate or beyondwarispeace.com) on Tue Apr 27th, 2010 at 07:32:22 AM EST
[ Parent ]
yes, that is very important indeed (as discussed many times before on ET). However, are you sure that in Spain the FIT works like in Germany where the costs are passed to the customer? I'm not really that informed about the Spanish electricity market but I know that it's a bit different? You financed some Spanish deals a while back, could you perhaps elaborate or link?
by crankykarsten (cranky (where?) gmx dot organisation) on Tue Apr 27th, 2010 at 11:51:00 AM EST
[ Parent ]
The particularities of the Spanish feed-in law came up earlier, here.

*Lunatic*, n.
One whose delusions are out of fashion.
by DoDo on Tue Apr 27th, 2010 at 01:54:34 PM EST
[ Parent ]


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