There are a lot of windmills generating electricity in Denmark.
Two Danish researchers have conducted a fascinating study on the effect of these windmills on the prices of electricity on the spot market (day trading between big producers/users of capacity). Spot market prices have a real economic effect which businesses (large consumers) do see but end-users who buy electricity at fixed prices usually do not see. The spotmarket prices indicate the real-time mismatch between demand and supply. If demand starts to exceed the base load the producers have to start up (expensive) gas-fired plants.
Their conclusion is that windmills do reduce spot market prices with a sizable amount, generating real benefits for consumers.
One should add this effect to the economic benefit of windmills. According to the researchers this effect compensates the subsidies granted to windmills if you consider it at the level of society (taxpayers/consumers).
An unexpected benefit…..
