22　Assessing the Impact of Photovoltaic Generation on Wholesale Electricity Market and Consumer Economic Benefits Under Feed-in Tariff Scheme

Abstract

Under a feed-in tariff (FIT) scheme this study assesses the impact of photovoltaic (PV) generation on wholesale electricity market and consumer economic benefits. To compare counterfactual electricity prices without PV and real prices with PV, an empirical analysis is performed with data on electricity prices, electricity demand and PV generation in Japan utilizing a structural model of electricity prices. The results indicate the positive consumer economic benefits owing to introduction of PV in recent years. These benefits mainly arise from cost reduction due to increasing PV generation under high electricity demand typically in summer.