Lappeenranta and Chalmers have analyzed the impact of adding 100 MW of PV across various Nordic regions. Lappeenranta–Lahti University of Technology and Chalmers University of Technology are Nordic research institutes. The study has used ERA5-based weather data and modified NordPool day-ahead bid curves to simulate new electricity price formations. Electricity cost reductions of €18 million (~ $20.7 million) per year were identified, with peak cannibalization rates reaching €13/MWh (~ $14.95/MWh) in certain locations. Regions with generation patterns better aligned with demand were found to deliver stronger price effects than higher-output regions. Solar has been shown to complement wind power seasonally, improving generation balance across Nordic countries. The findings have emphasized that generation timing and spatial diversity matter more than installed capacity in reducing market volatility.
Solar siting study links location to lower market prices
Researchers from Lappeenranta and Chalmers modeled 100 MW PV additions and found electricity price drops were tied to location and generation timing.
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