Effect of wind generation on ERCOT nodal prices

In this paper, we utilize nodal price data at each thermal-generation facility within the ERCOT footprint between 2014 and 2016 to revisit an empirical question of great interest to various parties: how does wind integration affect the wholesale energy price? We find that for every additional 1000 MW of wind generation in a Real-Time 15-minute Settlement Interval, nodal prices at non-wind resources would be suppressed by $1.45/MWh to $4.45/MWh, with considerable heterogeneity across time and space.