Abstract for: Would renewable damp oscillations in power markets? An experimental analysis
Cycles in electricity markets have been widely studied during the past three decades. Different methodologies have been used to understand the cycles and to evaluate mechanisms to mitigate them. With increasing concern about the climate crisis, most of the countries today have the challenge of transforming the energy sector to introduce cleaner technologies. Thus, new questions arise about the effects of the massive penetration of new technologies on electricity market cycles. In this paper, we present an analysis from an experimental economics perspective, using system dynamics to develop the experiment’s mathematical model. Experimental results suggest that the introduction of one technology with shorter construction delays and lifetime does not eliminate the price cycles, and would instead increase the oscillations frequency.