“Discount” - the renewable energy production impact on electricity price

In coming years the amount of renewable energy production compared to the production from conventional power plants will increase. The electricity produced from wind energy is considered to be the one with the lowest levelized cost of energy and could be a dominant electricity source in the future. The dismantling of conventional power plants and increase in variable renewable energy production will have effect on the average electricity price on the Nord Pool market to the consumers, but even more to the wind electricity producers. Three scenarios of wind energy installed capacity from years 2025 to 2045 were analyzed with Balmorel program in Estonia and nearby countries. As a results two simplified models to determine the average electricity price and the discount effect in relation to installed wind energy capacity was introduced.