Impact of High Renewable Energy Penetration on Price Volatility: A Comparative Analysis of Denmark and Germany

This study examines the impact of high renewable energy sources (RES) penetration on electricity price volatility and market dynamics in Denmark and Germany. Analyzing 2024 data, we assess how varying RES levels influence price distributions, volatility, and negative price occurrences. Results show that higher RES penetration reduces prices, with Germany experiencing sharper price drops and volatility reductions compared to Denmark. The study also highlights the emergence of zero-price extremes, particularly in Germany, and the challenges of maintaining market stability with high RES penetration.