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Yes, but the effect size depends on the size of the electricity market area, which is a function of transmission capacity and agreements. In this case it seems
by fulafel 5y ago
Yes, but the effect size depends on the size of the electricity market area, which is a function of transmission capacity and agreements. In this case it seems the increased supply will be absorbed by a market area that spans multiple countries, so the price effect should be less than what you might guess from the relatively big local production capacity jump. Also there might be an incentive to expand the transmission capacity for export.