Johanna Fink
Doctoral student
Can the creation of separate bidding zones within countries create imbalances in PV uptake? : Evidence from Sweden
Author
Summary, in English
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 together with Italy the only EU country with multiple bidding zones and is facing dramatic divergence in electricity prices between low-tariff bidding zones in Northern and high-tariff bidding zones in Southern Sweden since 2020. The results indicate that PV uptake in municipalities located north of the bidding zone border is reduced by 40.9-48% compared to their Southern counterparts. Based on these results, the creation of separate bidding zones within countries poses a threat to the expansion of PV generation and other renewables since it disincentivizes investment in areas with low electricity prices.
Department/s
- Department of Economic History
- Growth, technological change, and inequality
Publishing year
2023-12-26
Language
English
Pages
1-70
Document type
Preprint
Publisher
arXiv.org
Topic
- Economic History
Keywords
- N44
- N54
- N74
- Q41
- Q48
- Sweden
- Bidding Zone
- Solar Energy
- Electricity price
Status
Published