RT Conference Proceedings
T1 An analysis of mergers in the presence of renewable energy integration uncertainty.
A1 Daher, Wassim
A1 Elnaboulsi, Jihad
A1 Fikru, Mahelet G.
A1 Gautier, Luis
K1 Empresas - Fusión
K1 Reorganización de empresas
AB We study the incentives to merge for energy producers in the presence of  distributed renewable energy producers. Utilizing a Cournot model, we explore how uncertainty surrounding the cost of grid integration influences the profitability of mergers, where uncertainty comes in the form of an industry-wide (or common) and private shocks. We find that the effect of these uncertainties on merger profitability depends on average energy grid integration costs, the size of the merger, and quality of private information. Overall, results suggest that mergers are more likely to be profitable when firms can effectively absorb private shocks due to the scale of the merger, unless average grid integration costs become too high. The incentives to merge are less clear-cut in the presence of an industry-wide (common) shock, unless the quality of private information is high enough.
YR 2024
FD 2024
LK https://hdl.handle.net/10630/32031
UL https://hdl.handle.net/10630/32031
LA eng
NO Universidad de Málaga. Campus de Excelencia Internacional Andalucía Tech.
DS RIUMA. Repositorio Institucional de la Universidad de Málaga
RD 20 ene 2026