The effects of renewable energy generation on electricity prices

This thesis investigates the effect of different electricity generation sources on the price of electricity in Denmark, Finland, Norway, and Sweden. This is done by using panel data regressions with annual data for the period between 2004 and 2021. The results indicate that variations in the share of electricity generation from wind power is the only electricity generations source that is statistically significant at the 5 per cent significance level. An increase in the share of wind power is related to a decrease in the price. Electricity generated from solar power is statistically significant only at the 10 per cent significance level and is related to an increase in the electricity price. Electricity generated from hydropower and combustible fuels do not have a significant relationship with electricity price. In addition, increasing the price of oil also showed to associate with an increase of the electricity price. Nonetheless, it is crucial to interpret the results with caution due to the data used being annual, which may lead to the loss of nuances when using mean values