Electricity Markets: Bid Selection, Market Volatility, and Impact on Renewable Energy Projects

The chapter delves into the intricacies of spot markets in the electricity industry, focusing on bid selection processes and market volatility. It explains how different energy sources like solar, wind, gas, coal, and nuclear are chosen based on factors like weather conditions and demand levels, impacting wholesale prices. The chapter also discusses the challenges faced by developers of renewable energy projects due to market fluctuations and the importance of stabilizing mechanisms like feed-in tariffs to ensure profitability.