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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ftslunivuppsala:oai:pub.epsilon.slu.se:27313 2023-05-15T17:44:35+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 application/pdf https://pub.epsilon.slu.se/27313/ https://pub.epsilon.slu.se/27313/1/hu_x_et_al_220314.pdf en eng eng https://pub.epsilon.slu.se/27313/1/hu_x_et_al_220314.pdf Hu, Xiao and Jaraitė, Jūratė and Kažukauskas, Andrius (2021). The effects of wind power on electricity markets: A case study of the Swedish intraday market. Energy Economics. 96 , 105159 [Research article] Economics Research article NonPeerReviewed 2021 ftslunivuppsala 2022-03-17T17:13:50Z 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.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. ? 2021 Elsevier B.V. All rights reserved. Article in Journal/Newspaper Northern Sweden Swedish University of Agricultural Sciences (SLU): Epsilon Open Archive |
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Swedish University of Agricultural Sciences (SLU): Epsilon Open Archive |
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English |
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Economics |
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Economics Hu, Xiao Jaraitė, Jūratė Kažukauskas, Andrius The effects of wind power on electricity markets: A case study of the Swedish intraday market |
topic_facet |
Economics |
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.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. ? 2021 Elsevier B.V. All rights reserved. |
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 |
https://pub.epsilon.slu.se/27313/ https://pub.epsilon.slu.se/27313/1/hu_x_et_al_220314.pdf |
genre |
Northern Sweden |
genre_facet |
Northern Sweden |
op_relation |
https://pub.epsilon.slu.se/27313/1/hu_x_et_al_220314.pdf Hu, Xiao and Jaraitė, Jūratė and Kažukauskas, Andrius (2021). The effects of wind power on electricity markets: A case study of the Swedish intraday market. Energy Economics. 96 , 105159 [Research article] |
_version_ |
1766146826844504064 |