The evolution of bidding strategies in Spain following the introduction of renewable energy

This study of the bidding strategies used by electricity producers in the day-ahead and intraday markets in Spain-Portugal shows that they clearly do respect the merit order. They offer their production at a range of prices which vary from one hour of the day to another, and from one day of the week to another. We show that on average over a quarter producers received about the same revenue per MWh sold irrespective of fuel type. The average dropped from 70-75 euro per MWh in 2008 to as low as 25 euro in 2010 because of the global crisis then rose to about 50 euro in 2012 despite the increasing quantity of renewal energy and the stagnation of the demand.