Growing Evidence of Increased Frequency of Negative Electricity Prices in U.S. Wholesale Electricity Markets

Compass Lexecon Executive Vice President Joseph Cavicchi and Senior Analyst Maheen Bajwa co-authored an article which was published in the International Association for Energy Economics Energy Forum newsletter. In this article, Mr. Cavicchi and Ms. Bajwa use real-time pricing data from U.S. wholesale electricity markets to examine the increasing frequency and incidence of negative electricity prices corresponding to the increasing supply of renewable resources. Increased reliance on State renewable resource production-based subsidies will likely lead to more frequent negative prices.

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