We looked back at #windgeneration in #ercot West Hub for the years 2011, 2016 and 2022 to get a feel for price behavior as wind was an increasing part of the generation mix. We wanted to see how many intervals were below $0 and at or above $100 as a simple study of price volatility over time as demand varied.
We found a few things in our simple analysis: 1) the number of intervals with clearing prices was higher in periods of lower demand, 2) price volatility increased from 2016 to 2022 as shown by the number of intervals below and above our thresholds and 3) average clearing prices did not decline even as wind generation increased to 25% of the generation mix.
