Thomas, professor at Toulouse School of Economics and director of EDF corporate university, explains how the massive deployment of renewable energy resources has impacted the European electricity sector in the last decade. The correlation between electricity demand and the availability of renewable energy (e.g. wind and sunlight) is particularly relevant to understand how the deployment of renewable generation capacity affects the generation mix of an electricity system. Similarly, the policy mechanism put in place to incentivise the generation of electricity from renewables can lead to severe distortions in the way power markets work. An excessive frequency of negative prices for power is a relevant case in point. The introduction of a financial dispatch insurance instead of feed-in tariffs or feed-in premiums could be a good solution to the problem of negative prices, because it could reconcile support for renewables with an efficient functioning of energy markets.
For more info look at the research paper: Do costs fall faster than revenues? Dynamics of renewable entry into electricity markets (Green and Léautier, 2015).
Link to the research paper: http://citeseerx.ist.psu.edu/viewdoc/download?doi=10.1.1.697.4750&rep=rep1&type=pdf