Download or read book The Impact of Intermittent Power Generation on the Wholesale Electricity Prices of the Mibel Iberian Market written by Paulo Pereira da Silva and published by . This book was released on 2018 with total page 34 pages. Available in PDF, EPUB and Kindle. Book excerpt: By means of regression analysis, we address the price impact of intermittent renewable energy sources (wind, solar and waves) for the Mibel Iberian Market (Portugal and Spain) during the period spanning from 2010 to 2015. Our results suggest that: i) intermittent renewable energy has a material negative effect on electricity price; ii) the merit-order effect varies depending on the technology employed: wind power appears to produce a greater impact on price vis-à-vis solar photovoltaic energy; iii) there is no evidence corroborating the idea that the impact of intermittent renewable electricity penetration is declining over time; and iv) the market coupling with France, in effect since May 2014, led to a decrease in the sensitivity of price to intermittent renewable energy production. Our results are useful for risk management purposes and to support policy-makers and utilities in defining the optimal generation mix.
Download or read book Market Integration and the Persistence of Electricity Prices written by João Pedro Pereira and published by . This book was released on 2018 with total page 22 pages. Available in PDF, EPUB and Kindle. Book excerpt: There is an ongoing trend of deregulation and integration of electricity markets in Europe and North America. This change in market structure has naturally affected the interaction between agents and has contributed to an increasing commoditization of electric power. This paper focuses on one specific market, the Iberian Electricity Market (MIBEL). In particular, we assess the persistence of electricity prices in the Iberian market and test whether it has changed over time. We consider each hour of the day separately, that is, we analyze 24 time-series of day-ahead hourly prices for Portugal and another 24 series for Spain. We find results consistent with the hypothesis that market integration leads to a decrease in the persistence of the price process. More precisely, the tests detect a break in the memory parameter of most price series around the year 2009, which coincides with a significant increase in the integration of the Portuguese and Spanish markets. The results reinforce the view that market integration has an impact on the dynamics of electricity prices.
Download or read book Integration of European Electricity Markets written by Marta Ferreira Dias and published by . This book was released on 2011 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: This thesis contributes to the study of the role of some identified obstacles to delay the process of liberalisation and integration of European electricity markets and to impede the achievement of its full benefits, namely increase efficiency and, ultimately, to pass on this efficiency gains to final consumers by lowering prices of electricity. Chapter 1 is a description and analysis of the progress made on European liberalisation and integration of electricity markets, identifying some of the main obstacles found on the path to achieve the Single European Market for electricity and solutions propsed to avoid them, either from the perspective of the EC and from the perspective of economic literature. The concerns considered for this review are related with the main focus of the thesis, market power and concentration. The solutions found on the literature to avoid these obstacles are related with the search for the best market design to be adopted in the Single Electricity Market. Since the Nordic countries constitute an integrated market considered as a success, this example is briefly explained in order to understand which are the main features of this success. The second chapter presents a simulation for the integration of the Iberian wholesale electricity market (MIBEL) in order to study how the exercise of market power will evolve with regional full integration. Following Borenstein and Bushnell (1999), we compare simulated market outcomes on four days of 2004, with no integration and with full integration. The presence of market power is measured using the Lerner Index. The simulation results allow us to conclude that, as expected, market power is lower after full integration. However, even after full integration, market power is still a feature of the market. Therefore, the full benefits of liberalisation and integration are not seized by the consumers, since wholesale prices persist to be higher than the marginal costs. The market participants with more benefits are the Portuguese, both consumers and the incumbent firm. The third chapter's purpose is to assess econometrically the impact on final consumer of mergers between electricity generators and natural gas suppliers. We find evidence that a merger of this type will increase final price of electricity in the market where it occurs. Moreover, as a consequence of the EOn-Rurhas German household consumers pay more 1.8% for the electricity and, in Finland, the Nest-Ivo merger caused an increase of around 2% on prices for household consumers. The answer to the question "should household consumers be concerned if a cross sectorial merger happens" seems to be yes, due to the detrimental effects on final prices.
Download or read book The Iberian Electricity Market MIBEL written by Alexandra Amaro and published by . This book was released on 2004 with total page 80 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book The Iberian Exception written by David Robinson and published by . This book was released on 2023 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper by David Robinson, Angel Arcos, Michael Tennican and Fernando Núnez offers an independent assessment of certain key economic effects of the Iberian Exception (IE), the common name for legal measures affecting the Iberian power market that were introduced in June 2022 by the Spanish and Portuguese governments. The governments' stated aim was to reduce the major component of electricity prices for many Iberian consumers, a component which was indexed to Iberian wholesale power market spot prices that were rising alarmingly due to extremely tight international markets for natural gas. According to the Iberian governments, this objective was to be attained by terms of the IE that subsidize a reduction in wholesale power market prices, with the subsidy financed in part by a new element added to the bills of consumers benefiting from that wholesale price reduction. Another Spanish governmental aim was to reduce the Government's published measure of inflation, which was linked to a regulated retail price indexed to Iberian wholesale spot power market prices. The Spanish Government maintains that, during its first 100 days, the IE provided substantial benefits for consumers affected by the IE, which included over 10 million small consumers as well as many large ones. However, the authors of this study question that view. We argue that the effect of the IE on retail prices depends critically on the assumptions about what would have occurred in the absence of the IE, that is, in a counterfactual scenario. The Government's counterfactual methodology ignores demand elasticity in Iberia and in France, and this inflates their estimate of immediate consumer benefits. Using hourly data on the wholesale electricity market for the first 100 days of the IE, this paper's analysis of alternative counterfactuals that reflect the effects of demand elasticity shows substantially lower benefits of the IE for consumers than the Spanish Government methodology suggests. The analysis here suggests that affected consumers could have paid somewhat less for the energy component of their electricity bills in the first 100 days of the IE, had it not been introduced. We also identify several other potential short- and long-term effects of the IE that deserve further study. These include increased margins for fossil-fired generators, reduced margins for some decarbonized inframarginal plant, heightened investor perceptions of regulatory risk, weakened incentives for efficient consumption, and higher carbon emissions and gas prices.
Download or read book Chasing the Sun and Catching the Wind Energy Transition and Electricity Prices in Europe written by Mr. Serhan Cevik and published by International Monetary Fund. This book was released on 2022-11-04 with total page 22 pages. Available in PDF, EPUB and Kindle. Book excerpt: European power markets are in the midst of unprecedented changes, with a record-breaking surge in energy prices.This paper investigates the impact of green power resources on the level and volatility of wholesale electricity prices at a granular level, using monthly observations for a panel of 24 European countries over the period 2014–2021 and alternative estimation methods including a panel quantile regression approach. We find that renewable energy is associated with a significant reduction in wholesale electricity prices in Europe, with an average impact of 0.6 percent for each 1 percentage points increase in renewable share. We also find evidence for a nonlinear effect—that is, higher the share of renewables, the greater its effect on electricity prices. On the other hand, while quantile estimation results are mixed with regards to the impact of renewables on the volatility of electricity prices, we obtain evidence that renewable energy has a negative effect on volatility at the highest quantiles. Overall, our analysis indicates that policy reforms can help accelerate the green transition while minimizing the volatility in electricity prices.
Download or read book The Relevance of Wholesale Electricity Market Places written by Petr Spodniak and published by . This book was released on 2019 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: Electricity wholesale markets are undergoing rapid transformation due to the increasing share of distributed and variable renewable energy sources (vRES) penetrating the market. The increasing shares of stochastic wind generation bring along greater deviations between the real time power generation and the day-ahead forecasts of power supply. It is therefore reasonable to assume that trading activity is shifting more from the traditionally dominant day-ahead market into the intra-day and regulating power markets. This is because predicting vRES power generation closer to the actual delivery is more reliable and because power generators are motivated to avoid high imbalance costs. We study price spreads between day-ahead, intra-day and regulating power markets in three Nordic countries (Denmark, Sweden and Finland) during 2013-2017. We estimate vector autoregressive (VAR) models to study the interrelationships between the price spreads and the effects of wind forecast and demand forecast errors, and other exogenous variables, such as transmission congestions, and hydrological conditions, on price spreads in different Nord Pool bidding areas. We use the variation in the shares of wind power between bidding areas to analyse the impacts of increased shares of wind power on different market places. We find that wind forecast errors do affect price spreads in areas with large shares of wind power generation. Moreover, demand forecast errors have an impact on almost all price spreads, except in areas with relatively low consumption. Our results indicate that increasing shares of wind power are, indeed, changing the relevance of different market places. Markets closer to real time are playing more important role than in the past.
Download or read book The Economic Effects of the Iberian Exception written by Miguel Haro Ruiz and published by . This book was released on 2023 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book The costs and impacts of intermittency written by and published by . This book was released on 2006 with total page 95 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Capacity Withdrawals in the Electricity Wholesale Market written by Panagiotis Tsangaris and published by Springer. This book was released on 2018-08-15 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book examines the issue of capacity withdrawals in the electricity wholesale market. Electricity generators can exercise market power in the wholesale market either by withdrawing generation capacity, or by pricing above competitive levels in order to achieve a higher market price and, thereby, increase revenues. After a comprehensive explanation of capacity withdrawal practices and the issues that arise when proceeding under competition law, the book analyses whether an increased state of transparency, as provided for in the REMIT and Regulation 543/2013, could facilitate the efficient functioning of electricity wholesale markets and the investigation of capacity withdrawal practices. It also examines the effect of the prohibition of market manipulation as prescribed in the REMIT in dealing with abusive capacity withdrawals in the electricity wholesale market.
Download or read book Does Locational Marginal Pricing Impact Generation Investment Location Decisions written by David P. Brown and published by . This book was released on 2020 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Market Operations in Electric Power Systems written by Mohammad Shahidehpour and published by John Wiley & Sons. This book was released on 2003-05-28 with total page 552 pages. Available in PDF, EPUB and Kindle. Book excerpt: An essential overview of post-deregulation market operations inelectrical power systems Until recently the U.S. electricity industry was dominated byvertically integrated utilities. It is now evolving into adistributive and competitive market driven by market forces andincreased competition. With electricity amounting to a $200 billionper year market in the United States, the implications of thisrestructuring will naturally affect the rest of the world. Why is restructuring necessary? What are the components ofrestructuring? How is the new structure different from the oldmonopoly? How are the participants strategizing their options tomaximize their revenues? What are the market risks and how are theyevaluated? How are interchange transactions analyzed and approved?Starting with a background sketch of the industry, this hands-onreference provides insights into the new trends in power systemsoperation and control, and highlights advanced issues in thefield. Written for both technical and nontechnical professionals involvedin power engineering, finance, and marketing, this must-haveresource discusses: * Market structure and operation of electric power systems * Load and price forecasting and arbitrage * Price-based unit commitment and security constrained unitcommitment * Market power analysis and game theory applications * Ancillary services auction market design * Transmission pricing and congestion Using real-world case studies, this timely survey offers engineers,consultants, researchers, financial managers, university professorsand students, and other professionals in the industry acomprehensive review of electricity restructuring and how itsradical effects will shape the market.
Download or read book Managing Unilateral Market Power in Electricity written by Frank A. Wolak and published by . This book was released on 2012 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper first describes those features of the electricity supply industry that make a prospective market monitoring process essential to a well-functioning wholesale market. Some of these features are shared with the securities industry, although the technology of electricity production and delivery make a reliable transmission network a necessary condition for an efficient wholesale market. These features of the electricity supply industry also make antitrust or competition law alone an inadequate foundation for an electricity market monitoring process. This paper provides examples of both the successes and failures of market monitoring from several international markets. More than 10 years of experience with the electricity industry restructuring process has shown that market failures are more likely and substantially more harmful to consumers than other market failures because of how electricity is produced and delivered and the crucial role it plays in the modern economy. Wholesale market meltdowns of varying magnitudes and durations have occurred in electricity markets around the world, and many of them could have been prevented if a prospective market monitoring process backed by the prevailing regulatory authority had been in place at the start of the market.
Download or read book Meeting the Balance of Electricity Supply and Demand in Latin America and the Caribbean written by Rigoberto Ariel Yépez-García and published by World Bank Publications. This book was released on 2011-06-24 with total page 215 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book discusses the critical issues for the power sector in Latin America and the Caribbean considering a baseline scenario to 2030. Among these issues are the demand for electricity, the total new supply of electric-generating capacity needed, and the technology and fuel mix of the generating capacity.
Download or read book The Economic Impact of Enforcement of Competition Policies on the Functioning of EU Energy Markets written by ICF International and published by . This book was released on 2016 with total page 224 pages. Available in PDF, EPUB and Kindle. Book excerpt: "This study examines whether EU competition policy enforcement has led to stronger competition in European gas and electricity markets and hence lower prices, higher investment and improved productivity. Specifically, the study analyses the impact of competition policy enforcement on shortrun measures of intensity of competition such as profit elasticity and productivity dispersion (at sectorcountry level); and medium and long-term competitive outcomes such as investment and productivity (at firm-sector-country level). The main result of this analysis is that EU merger policy enforcement is consistently and significantly related to better market outcomes, especially in low-regulated markets. The impacts of the EU's antitrust enforcement and state aid control on the other hand, are not statistically significant. The study also empirically evaluates the price effects of two individual competition policy enforcement cases using the Difference-in-Differences (DiD) approach."--Abstract.
Download or read book Measuring market power in wholesale electricity markets a Dynamic competition approach written by Reynolds and published by . This book was released on with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book An economic evaluation of the proposed wholesale electricity market and options for the structure of generation written by and published by . This book was released on 1994 with total page 85 pages. Available in PDF, EPUB and Kindle. Book excerpt:
