Abstract
This study discusses the market value of electricity production by different sustainable sources, and shows how it is influenced by the correlation between electricity market price and energy production. The generic discussion is accompanied by a case study comparing the value of wave, wind and solar power using time series data for production and prices generated by grid and market simulations. The study has shown that simplified common-practise approaches (which do not consider correlation) fail to correctly reveal the market value of electricity production. It has also been shown that wave power can achieve a market value that is significantly higher than wind and slightly higher than solar. These differences in market value have been explained through correlation between electricity production and price, which is different for different energy sources. The study has identified competitive advantages of wave power towards the dominant sustainable energy sources, that need to be taken into account when competitiveness and profitability are to be assessed.
