Wind energy has experienced phenominal growth in recent years,changing the energy landscape around the world.In the UK,the installed capacity for on-and off-shore wind power generation has increased from 0.7 gigawatts(GW)in 2003 to 20 GW by the end of 2017.1 In the first half of 2018,more than 15% of total electricity supply in the UK was generated from wind power.Because of its low marginal cost(zero fuel cost),wind power normally enters near the bottom of the supply curve,shifting the supply curve.It has been argued that the increased penetration of wind power would lead to lower electricity price(EWEA,2010).However,most of the literature in this area is based on simulation studies(Green and Vasilakos,2011;A.Gil and Lin,2013;Brancucci Martinez-Anido et al,2016).There is surprisingly little empirical evidence on how the wind power has affected the wholesale electricity price.In this paper we use monthly averages of volume-weighted wholesale price data in the UK from 2005 to 2018 to quantify the extent to which the wind power in the UK has influenced the wholesale electricity price.
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