scholarly journals The Impact of Variable Renewable Energy Penetration on Wholesale Electricity Prices in Japan Between FY 2016 and 2019

2021 ◽  
Vol 2 ◽  
Author(s):  
Makishi Sakaguchi ◽  
Hidemichi Fujii
Keyword(s):  
Renewable Energy ◽  
Electricity Market ◽  
Renewable Energy Sources ◽  
Ordinary Least Squares ◽  
High Price ◽  
Spot Price ◽  
Electricity Prices ◽  
National Analysis ◽  
The Impact ◽  
Price Spikes

The merit order effect (MOE), which renewable energy sources can decrease wholesale electricity prices, plays an important role in establishing low-carbon societies. After the liberalization of the electricity market, the trade volume of the Japan Electric Power Exchange (JEPX) day-ahead spot market drastically increased between 2016 and 2019; however, price spikes still occur often. Ordinary least squares and quantile regression analyses were applied in this study to investigate how wind and solar photovoltaics (PV) energy generation affect the JEPX day-ahead spot price by time, price range, and area, and we concluded that the MOE of wind increased between 2016 and 2019 while that of PV decreased during this time. In regard to the high price ranges, although wind generation is not significant in terms of reducing price spikes, PV had this effect in 2016 and 2017 but not during the other years covered. The study area was divided into four regions, and each area followed trends that were different from those of the national analysis. Overall, the key finding of our study is that wind power has more potential to reduce electricity prices than PV.

scholarly journals Considerations Regarding the Negative Prices on the Electricity Market

Proceedings ◽  
2020 ◽  
Vol 63 (1) ◽  
pp. 26
Author(s):  
Pavel Atănăsoae ◽  
Radu Dumitru Pentiuc ◽  
Eugen Hopulele
Keyword(s):  
Renewable Energy ◽  
Electricity Markets ◽  
Electricity Market ◽  
Renewable Energy Sources ◽  
Energy Sources ◽  
Electricity Prices ◽  
Market Areas ◽  
The Impact ◽  
Market Coupling

Increasing of intermittent production from renewable energy sources significantly affects the distribution of electricity prices. In this paper, we analyze the impact of renewable energy sources on the formation of electricity prices on the Day-Ahead Market (DAM). The case of the 4M Market Coupling Project is analyzed: Czech-Slovak-Hungarian-Romanian market areas. As a result of the coupling of electricity markets and the increasing share of renewable energy sources, different situations have been identified in which prices are very volatile.

scholarly journals Operational Planning and Bidding for District Heating Systems with Uncertain Renewable Energy Production

Energies ◽  
2018 ◽  
Vol 11 (12) ◽  
pp. 3310 ◽  
Author(s):  
Ignacio Blanco ◽  
Daniela Guericke ◽  
Anders Andersen ◽  
Henrik Madsen
Keyword(s):  
Renewable Energy ◽  
Power Systems ◽  
Power System ◽  
Electricity Markets ◽  
Electricity Market ◽  
Renewable Energy Sources ◽  
District Heating ◽  
Operational Planning ◽  
Solution Approach ◽  
The Impact

In countries with an extended use of district heating (DH), the integrated operation of DH and power systems can increase the flexibility of the power system, achieving a higher integration of renewable energy sources (RES). DH operators can not only provide flexibility to the power system by acting on the electricity market, but also profit from the situation to lower the overall system cost. However, the operational planning and bidding includes several uncertain components at the time of planning: electricity prices as well as heat and power production from RES. In this publication, we propose a planning method based on stochastic programming that supports DH operators by scheduling the production and creating bids for the day-ahead and balancing electricity markets. We apply our solution approach to a real case study in Denmark and perform an extensive analysis of the production and trading behavior of the DH system. The analysis provides insights on system costs, how DH system can provide regulating power, and the impact of RES on the planning.

scholarly journals Renewable electricity in Western Balkans: Support policies and current state

2018 ◽  
Vol 22 (6 Part A) ◽  
pp. 2281-2296
Author(s):  
Nikola Rakic ◽  
Dusan Gordic ◽  
Vanja Sustersic ◽  
Mladen Josijevic ◽  
Milun Babic
Keyword(s):  
Renewable Energy ◽  
Electricity Market ◽  
Electricity Generation ◽  
Renewable Energy Sources ◽  
Energy Sources ◽  
Western Balkans ◽  
Renewable Electricity ◽  
Current State ◽  
Balkan Countries ◽  
The Impact

The use of renewable energy sources for electricity generation in the Western Balkan countries is analyzed in this review paper. Since those countries are part of EU or intend to be, data for Western Balkan are also compared with data for EU-28. The first part of the paper presents a brief overview of main promotion mechanism for electricity generation from renewable energy sources. As a dominant support policy, the feed-in tariff is more elaborated as an incentive measure and a de?tailed overview of the amount of tariffs and quotas for dominant technologies in the Western Balkan countries is presented. Furthermore, the current state of installed capacities and annual productions of three particular renewable electricity technologies (small hydro power, wind power, and solar photovoltaic) are analyzed in detailes. Based on presented data, there is a discussion and consideration of the impact of incentive measures on the electricity market and power production from renewable sources.

scholarly journals Determinants of the Forward Premium in the Nord Pool Electricity Market

Energies ◽  
2020 ◽  
Vol 13 (5) ◽  
pp. 1111
Author(s):  
Erik Haugom ◽  
Peter Molnár ◽  
Magne Tysdahl
Keyword(s):  
Electricity Market ◽  
Implied Volatility ◽  
Renewable Energy Sources ◽  
Ordinary Least Squares ◽  
Spot Price ◽  
Forward Contracts ◽  
Forward Premium ◽  
Realised Volatility ◽  
The Difference ◽  
Efficient Power

Nord Pool is the leading power market in Europe. It has been documented that the forward contracts traded in this market exhibit a significant forward premium, which could be a sign of market inefficiency. Efficient power markets are important, especially when there is a goal to increase the share of the power mix stemming from renewable energy sources. We therefore contribute to the understanding of this topic by examining how the forward premium in the Nord Pool market depend on several economic and physical conditions. We utilise two methods: ordinary least squares and quantile regression. The results show that the reservoir level and the basis (the difference between the forward and spot price) have a significant impact on the forward premium. The realised volatility of futures prices and the implied volatility of the stock market have strong effects on both the conditional lower and upper tails of the forward premium. We also find that, as the market has matured, the forward premium has decreased, indicating an increase in market efficiency.

Uticaj tržišnih cena električne energije na isplativost buduće reverzibilne hidroelektrane u Srbiji

2021 ◽  
Vol XXIII (4) ◽  
pp. 23-30
Author(s):  
Radoš Čabarkapa ◽  
◽  
Vladimir Šiljkut ◽  
Danilo Komatina ◽  
Miroslav Tomašević
Keyword(s):  
Electricity Market ◽  
Power Plants ◽  
Cost Benefit Analysis ◽  
Renewable Energy Sources ◽  
Thermal Power ◽  
Pollution Prevention ◽  
Cost Benefit ◽  
Hydropower Plant ◽  
Electricity Prices ◽  
The Impact

Deregulation in the power sector, liberalization of the electricity market, tendency to connect markets across Europe, introduction of incentives for construction and use of renewable energy sources (RES) and - consequently - their increasing presence in electricity systems, have taken a decisive impact on wholesale electricity prices. In addition, the introduction of CO2 taxes has further increased overall electricity prices. On the other hand, it reduced the profits of fossil fuel thermal power plants (TPPs). Also, in order to meet the prescribed requirements in the field of environmental protection, TPPs must apply pollution prevention systems that are very expensive, both in terms of investment and exploitation. As an alternative, investments in the hydro sector should be considered. However, this option is characterized by other issues; In contrast to the long-term construction and exploitation of hydro capacity, there are fluctuations in electricity prices on the day-ahead market which affect the work schedule and revenues of these facilities. To investigate this problem, hourly and daily prices in the regional electricity market were analysed. Trends in wholesale electricity prices on the day-ahead market have been determined. Their relevant values were estimated and used as one of the sets of input data for cost-benefit analysis and sensitivity analysis of the case study - future reversible hydropower plant (RHPP) "Bistrica". The impact of fluctuations in electricity prices on the day-ahead market was emphasized. The aim of this research was to draw a conclusion as to whether the movement of these prices is in favour of the construction of possible RHPPs in Serbia. Based on the conducted analyses, it can be concluded that the upward trend in the level of wholesale electricity prices (which began in 2019 and is expected to continue in the future considering the EU regulatory policy regarding CO2 emissions taxes) may positively affect the profitability of investment in RHE Bistrica (i.e. to shorten the payback period), but not so dramatically, since with the increase in electricity prices, the costs for pumping also increase.

scholarly journals Analyzing Trade in Continuous Intra-Day Electricity Market: An Agent-Based Modeling Approach

Energies ◽  
2021 ◽  
Vol 14 (13) ◽  
pp. 3860
Author(s):  
Priyanka Shinde ◽  
Ioannis Boukas ◽  
David Radu ◽  
Miguel Manuel de Manuel de Villena ◽  
Mikael Amelin
Keyword(s):  
Renewable Energy ◽  
Electricity Market ◽  
Power Plants ◽  
Renewable Energy Sources ◽  
Thermal Power ◽  
Agent Based Modeling ◽  
Market Liquidity ◽  
Energy Sources ◽  
Modeling Framework ◽  
Agent Based

In recent years, the vast penetration of renewable energy sources has introduced a large degree of uncertainty into the power system, thus leading to increased trading activity in the continuous intra-day electricity market. In this paper, we propose an agent-based modeling framework to analyze the behavior and the interactions between renewable energy sources, consumers and thermal power plants in the European Continuous Intra-day (CID) market. Additionally, we propose a novel adaptive trading strategy that can be used by the agents that participate in CID market. The agents learn how to adapt their behavior according to the arrival of new information and how to react to changing market conditions by updating their willingness to trade. A comparative analysis was performed to study the behavior of agents when they adopt the proposed strategy as opposed to other benchmark strategies. The effects of unexpected outages and information asymmetry on the market evolution and the market liquidity were also investigated.

scholarly journals Electricity Markets during the Liberalization: The Case of a European Union Country

Energies ◽  
2021 ◽  
Vol 14 (14) ◽  
pp. 4317
Author(s):  
Štefan Bojnec ◽  
Alan Križaj
Keyword(s):  
Electricity Markets ◽  
Electricity Market ◽  
Renewable Energy Sources ◽  
Primary Energy ◽  
Lessons Learned ◽  
Policy Implications ◽  
Daily Maximum ◽  
Energy Prices ◽  
Electricity Prices ◽  
Electricity Power

This paper analyzes electricity markets in Slovenia during the specific period of market deregulation and price liberalization. The drivers of electricity prices and electricity consumption are investigated. The Slovenian electricity markets are analyzed in relation with the European Energy Exchange (EEX) market. Associations between electricity prices on the one hand, and primary energy prices, variation in air temperature, daily maximum electricity power, and cross-border grid prices on the other hand, are analyzed separately for industrial and household consumers. Monthly data are used in a regression analysis during the period of Slovenia’s electricity market deregulation and price liberalization. Empirical results show that electricity prices achieved in the EEX market were significantly associated with primary energy prices. In Slovenia, the prices for daily maximum electricity power were significantly associated with electricity prices achieved on the EEX market. The increases in electricity prices for households, however, cannot be explained with developments in electricity prices on the EEX market. As the period analyzed is the stage of market deregulation and price liberalization, this can have important policy implications for the countries that still have regulated and monopolized electricity markets. Opening the electricity markets is expected to increase competition and reduce pressures for electricity price increases. However, the experiences and lessons learned among the countries following market deregulation and price liberalization are mixed. For industry, electricity prices affect cost competitiveness, while for households, electricity prices, through expenses, affect their welfare. A competitive and efficient electricity market should balance between suppliers’ and consumers’ market interests. With greening the energy markets and the development of the CO2 emission trading market, it is also important to encourage use of renewable energy sources.

Kazakhstan: Assessment of Renewable Energy Support and a Green Economy

2021 ◽  
Vol 12 (3) ◽  
pp. 631
Author(s):  
Sergey BESPALYY
Keyword(s):  
Economic Growth ◽  
Renewable Energy ◽  
Power Plants ◽  
Renewable Energy Sources ◽  
The State ◽  
Green Economy ◽  
Energy Sources ◽  
Environmentally Sustainable ◽  
The Government ◽  
The Impact

The growth of renewable energy sources (RES) shows the desire of the government of Kazakhstan to meet challenges that affect the welfare and development of the state. National targets, government programs, policies influence renewable energy strategies. In the future, renewable energy technologies will act as sources of a green economy and sustainable economic growth. The state policy in the field of energy in Kazakhstan is aimed at improving the conditions for the development and support of renewable energy sources, amendments are being made to provide for the holding of auctions for new RES projects, which replaces the previously existing system of fixed tariffs. It is expected that the costs of traditional power plants for the purchase of renewable energy will skyrocket, provided that the goals in the field of renewable generation are achieved. This article provides an assessment of international experience in supporting renewable energy sources, as well as analyzes the current situation in the development of renewable energy in Kazakhstan and the impact on sustainable development and popularization of the «green» economy. The study shows that by supporting the development of renewable energy sources, economic growth is possible, which is achieved in an environmentally sustainable way.

Analyzing the impact of fossil fuel import reliance on electricity prices: The case of the Iberian Electricity Market

2017 ◽  
Vol 28 (7) ◽  
pp. 687-705 ◽  
Author(s):  
Blanca Moreno ◽  
María T García-Álvarez
Keyword(s):  
Carbon Dioxide ◽  
Electricity Market ◽  
Fossil Fuel ◽  
Carbon Dioxide Emission ◽  
High Energy ◽  
Electricity Production ◽  
The European Union ◽  
Electricity Prices ◽  
The Impact ◽  
The Eu

Spain and Portugal are highly dependent on energy from abroad, importing more than 70% of all the energy they consume. This high energy dependence could involve important effects on the level and stability of their electricity prices as a half the gross electricity generated in both countries came from power stations using imported combustible fuels (such as natural gas, coal and oil). In general, changes in the prices of these fossil fuels can directly affect household electricity prices, since generation costs are likely to be transmitted through to the wholesale electricity market. Moreover, in the framework of the European Union Emission Trading System, electricity production technologies tend to incorporate their costs of carbon dioxide emission allowances in sale offers with the consequent increase of the electricity prices. The objective of this paper is to analyze the influence of fossil fuel costs and prices of carbon dioxide emission allowances in the EU on the Spanish and Portuguese electricity prices. With this aim, a maximum entropy econometric approach is used. The obtained results indicate that not only the price of imported gas are very important in explaining Spanish and Portuguese electricity prices but also the price of carbon dioxide emission allowances in the EU.

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