The effects of wind power on electricity markets: A case study of the Swedish intraday market
We investigate the process of electricity price formation in the Swedish intraday market, given a large share of wind power in the Swedish electricity system. According to Karanfil and Li's (2017) approach, if the intraday market is efficient, with large shares of intermittent electricity in th...
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ftlithuaniansrc:oai:elaba:88348735 2023-05-15T17:44:40+02:00 The effects of wind power on electricity markets: A case study of the Swedish intraday market Hu, Xiao Jaraitė, Jūratė Kažukauskas, Andrius 2021 http://vu.lvb.lt/VU:ELABAPDB88348735&prefLang=en_US eng eng info:eu-repo/semantics/altIdentifier/doi/10.1016/j.eneco.2021.105159 http://vu.lvb.lt/VU:ELABAPDB88348735&prefLang=en_US Energy economics, Amsterdam : Elsevier, 2021, vol. 96, art. no. 105159, p. 1-16 ISSN 0140-9883 eISSN 1873-6181 Day-ahead market Electricity Forecast errors Intraday market Intraday price premia Nuclear power outages Sweden Wind power info:eu-repo/semantics/article 2021 ftlithuaniansrc https://doi.org/10.1016/j.eneco.2021.105159 2021-12-02T01:10:53Z We investigate the process of electricity price formation in the Swedish intraday market, given a large share of wind power in the Swedish electricity system. According to Karanfil and Li's (2017) approach, if the intraday market is efficient, with large shares of intermittent electricity in the entire electricity system, intraday prices should send signals based on scarcity pricing for balancing power. Based on this theory, we analyze Swedish electricity market data for the period 2015–2018 and find that the Swedish intraday market, despite its small trading volumes, is functioning properly. In particular, our results show that intraday price premia mostly respond to wind power forecast errors and other imbalances resulting from either supply or demand sides of the electricity market, as they should if the intraday market is efficient. The results of wind power forecast errors hold for central and southern Sweden, but not for northern Sweden where the share of wind power production is still very small. However, we find no effect of unplanned nuclear power plant outages on intraday price premia. Article in Journal/Newspaper Northern Sweden LSRC VL (Lithuanian Social Research Centre Virtual Library) Energy Economics 96 105159 |
institution |
Open Polar |
collection |
LSRC VL (Lithuanian Social Research Centre Virtual Library) |
op_collection_id |
ftlithuaniansrc |
language |
English |
topic |
Day-ahead market Electricity Forecast errors Intraday market Intraday price premia Nuclear power outages Sweden Wind power |
spellingShingle |
Day-ahead market Electricity Forecast errors Intraday market Intraday price premia Nuclear power outages Sweden Wind power Hu, Xiao Jaraitė, Jūratė Kažukauskas, Andrius The effects of wind power on electricity markets: A case study of the Swedish intraday market |
topic_facet |
Day-ahead market Electricity Forecast errors Intraday market Intraday price premia Nuclear power outages Sweden Wind power |
description |
We investigate the process of electricity price formation in the Swedish intraday market, given a large share of wind power in the Swedish electricity system. According to Karanfil and Li's (2017) approach, if the intraday market is efficient, with large shares of intermittent electricity in the entire electricity system, intraday prices should send signals based on scarcity pricing for balancing power. Based on this theory, we analyze Swedish electricity market data for the period 2015–2018 and find that the Swedish intraday market, despite its small trading volumes, is functioning properly. In particular, our results show that intraday price premia mostly respond to wind power forecast errors and other imbalances resulting from either supply or demand sides of the electricity market, as they should if the intraday market is efficient. The results of wind power forecast errors hold for central and southern Sweden, but not for northern Sweden where the share of wind power production is still very small. However, we find no effect of unplanned nuclear power plant outages on intraday price premia. |
format |
Article in Journal/Newspaper |
author |
Hu, Xiao Jaraitė, Jūratė Kažukauskas, Andrius |
author_facet |
Hu, Xiao Jaraitė, Jūratė Kažukauskas, Andrius |
author_sort |
Hu, Xiao |
title |
The effects of wind power on electricity markets: A case study of the Swedish intraday market |
title_short |
The effects of wind power on electricity markets: A case study of the Swedish intraday market |
title_full |
The effects of wind power on electricity markets: A case study of the Swedish intraday market |
title_fullStr |
The effects of wind power on electricity markets: A case study of the Swedish intraday market |
title_full_unstemmed |
The effects of wind power on electricity markets: A case study of the Swedish intraday market |
title_sort |
effects of wind power on electricity markets: a case study of the swedish intraday market |
publishDate |
2021 |
url |
http://vu.lvb.lt/VU:ELABAPDB88348735&prefLang=en_US |
genre |
Northern Sweden |
genre_facet |
Northern Sweden |
op_source |
Energy economics, Amsterdam : Elsevier, 2021, vol. 96, art. no. 105159, p. 1-16 ISSN 0140-9883 eISSN 1873-6181 |
op_relation |
info:eu-repo/semantics/altIdentifier/doi/10.1016/j.eneco.2021.105159 http://vu.lvb.lt/VU:ELABAPDB88348735&prefLang=en_US |
op_doi |
https://doi.org/10.1016/j.eneco.2021.105159 |
container_title |
Energy Economics |
container_volume |
96 |
container_start_page |
105159 |
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1766146933537112064 |