Is the California-Style Energy Crisis of the 1990s Imminent? EU Energy Markets and Renewable Energy Sources

Interactions between increasing the penetration of the Power System by renewable energy sources and the mechanism of shaping energy prices (day-ahead market) create many unpredictable consequences. The article analyzes the reasons for the longterm persistence around zero prices on the day-ahead market in southwestern Europe. This is important since at the same time this area of Europe used to generate electricity from a similar energy mix as the target one for the EU.