scholarly journals A correlation analysis of the spot market prices of the Romanian electricity sector

2019 ◽  
Vol 14 (1) ◽  
pp. 150-162 ◽  
Author(s):  
Mihail Busu ◽  
Roxana ClodniȚchi ◽  
Manuela Liliana MureȘan
Keyword(s):  
Correlation Analysis ◽  
Electricity Markets ◽  
Weighted Average ◽  
Spot Market ◽  
Electricity Sector ◽  
Electricity Production ◽  
Energy Prices ◽  
Market Prices ◽  
Electricity Grids ◽  
Main Component

Abstract The energy sector is particularly important in the national economy as a whole, while the electricity sector is its main component. The developments in this area have strong economic and social repercussions. This article makes an overview of the electricity sector, illustrating the monthly evolution of consumption and production of instantaneous electricity in Romania in the past few years. Further on, the paper presents the monthly evolution of instantaneous consumption and production of electricity in Romania, the annual structure of electricity production and the depiction of some basic indicators of centralized electricity markets managed by OPCOM. The quantitative analysis presents the monthly evolution of weighted average prices on the competitive markets managed by OPCOM and a linear correlation analysis of the spot market prices in the Eastern European region. The conclusions of the article are in line with the research in the field and show that the electricity markets have registered important evolutions in Romania, both in terms of size and prices, evolutions based on both structural and behavioral factors. It also showed that spot market prices had relatively similar developments over the period analyzed in several countries in the region, with price correlations that seem to be even stronger as the interconnection of electricity grids is higher. Therefore, the results confirm the economic theory, namely that increasing the interconnection of electricity markets can lead to energy prices being brought closer, but also to mitigating the shocks affecting these markets.

scholarly journals Digitalisation potentials in the electricity ecosystem: lesson learnt from the comparison between Germany and Denmark

2021 ◽  
Vol 4 (S2) ◽  
Author(s):  
Thorsten Hack ◽  
Zheng Ma ◽  
Bo Nørregaard Jørgensen
Keyword(s):  
Renewable Energy ◽  
Electricity Markets ◽  
Value Chain ◽  
Electricity Sector ◽  
Transport Sector ◽  
Renewable Energy Resources ◽  
Electricity Grid ◽  
The World ◽  
Market Framework ◽  
Electricity Grids

AbstractDigitalisation potentials in the electricity sector are frequently discussed around the world, especially in Europe which has the largest interconnected continental electricity grid in the world. The analysis and comparison of electricity ecosystems between countries can help to enhance international understanding and cooperation. It can also enable businesses to expand. However, little literature has covered the cross-national comparisons of digitalisation potentials in the electricity sector. This paper uses the business ecosystem architecture development methodology to identify commonalities and differences between two electricity ecosystems: Germany and Denmark. The result shows that there are many similarities between the two countries, but the roles of market framework provider, market supervision, and metering point operator are performed by different actors. By comparing the value chain segments, the main differences between Denmark and Germany are the share of renewable energy generation, the organisation of the transmission system, smart meter installation & operations, and the national electricity data hub. Based on the comparisons, six recommendations for the digitalisation of the electricity ecosystem are proposed: digitalisation for enabling more renewable energy resources for electricity generation, digitalisation in the electricity grids, digitalisation ib. the electricity markets, digitalisation on the demand side, especially the transport sector, and regulation-driven digitalisation of the electricity ecosystem.

scholarly journals Influence of Wind Power on Intraday Electricity Spot Market: A Comparative Study Based on Real Data

Energies ◽  
2018 ◽  
Vol 11 (11) ◽  
pp. 2974 ◽  
Author(s):  
Pedro Frade ◽  
João Vieira-Costa ◽  
Gerardo Osório ◽  
João Santana ◽  
João Catalão
Keyword(s):  
Wind Power ◽  
Electricity Markets ◽  
Electricity Market ◽  
Consumer Satisfaction ◽  
Renewable Energy Sources ◽  
Spot Market ◽  
Electricity Sector ◽  
Market Condition ◽  
New Paradigm ◽  
Electricity Spot Market

Overtime, in the electricity sector, there has been a technological transfer to renewable electricity generation. With this change, processes, in the economic and availability terms, are expected to improve. In this new paradigm, society demands electricity without an impact on the environment and with the lowest possible cost. The wind power (WP) integration appears in this evolution process by achieving important technological advances, supporting in 2017 a growth of 44% of new projects in Europe, higher than any other renewable technology. However, the renewable energy sources (RES) integration in the electricity networks still presents technical difficulties and challenges, leading to challenges in the electricity markets (EMs). Therefore, this work evaluates the importance of WP and its influence on the Iberian Electricity Market (MIBEL), at the level of the intraday electricity spot market (IESM). This is an innovative study because literature usually focuses on day-ahead WP impact and this study focuses on intraday markets, which are closer to the consumption periods. The goal was to make an analysis on the impacts when betting on WP sources, in order to improve the market interaction with WP integration, considering as criteria the consumer satisfaction, in terms of lower electricity prices and WP availability. For this study, the market bids registered by the Iberian Electricity Market Operator (OMIE), from 2015 to 2017, ran over a new market simulator, specially developed for this proposal, considering a virtual market condition, but not considering the bids made by WP producers. The comparison of the results allowed the evaluation of the WP influence on the EM quantitative, which is noteworthy.

scholarly journals Short run effects of carbon policy on U.S. electricity markets

2019 ◽  
Author(s):  
Steven Dahlke
Keyword(s):  
Natural Gas ◽  
Electricity Markets ◽  
Power Plants ◽  
Carbon Tax ◽  
Carbon Price ◽  
Electricity Sector ◽  
Electricity Production ◽  
Coal Consumption ◽  
Emissions Reductions ◽  
Short Run

This paper presents estimates of short run impacts of a carbon price on the electricity industry using a cost-minimizing mathematical model of the U.S. market. Prices of 25 and 50 dollars per ton of carbon dioxide equivalent emissions cause electricity emissions reductions of 17% and 22% from present levels, respectively. This suggests significant electricity sector emissions reductions can be achieved quickly from a modest carbon tax. Short run effects refer to operational changes at existing U.S. power plants, mostly by switching production from coal plants to natural gas plants. The results do not include long run emissions reductions related to 1) new investments and retirements of electricity production assets, and 2) demand response as regulated electricity suppliers pass cost changes to retail customers. A state-level analysis of the results leads to the following conclusions: 1) most emissions reductions come from high coal-consuming states in the Mid-Atlantic and Midwest regions, 2) fifteen states increase emissions because their natural gas consumption offsets coal consumption in neighboring states, and 3) a flat per-capita rebate of tax revenue leads to wealth transfers across states.

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.

scholarly journals Raiffa-Kalai-Smorodinsky Bargaining Solution for Bilateral Contracts in Electricity Markets

Energies ◽  
2020 ◽  
Vol 13 (9) ◽  
pp. 2397
Author(s):  
Reinaldo Crispiniano Garcia ◽  
Javier Contreras ◽  
Matheus de Lima Barbosa ◽  
Felipe Silva Toledo ◽  
Paulo Vinicius Aires da Cunha
Keyword(s):  
Electricity Markets ◽  
Price Volatility ◽  
Spot Market ◽  
Nash Bargaining Solution ◽  
Nash Bargaining ◽  
Bargaining Solution ◽  
Market Pricing ◽  
Bilateral Contracts ◽  
Generation Company

In electricity markets, bilateral contracts (BC) are used to hedge against price volatility in the spot market. Pricing these contracts requires scheduling from either the buyer or the seller aiming to achieve the highest profit possible. Since this problem includes different players, a Generation Company (GC) and an Electricity Supplier Company (ESC) are considered. The approaches to solve this problem include the Nash Bargaining Solution (NBS) equilibrium and the Raiffa–Kalai–Smorodinsky (RKS) bargaining solution. The innovation of this work is the implementation of an algorithm based on the RKS equilibrium to find a compromise strategy when determining the concessions to be made by the parties. The results are promising and show that the RKS approach can obtain better results compared to the Nash equilibrium method applied to a case study.

scholarly journals BLAMING THE WEATHER, BLAMING THE PEOPLE: SOCIO-ENVIRONMENTAL GOVERNANCE AND A CRISIS ATTITUDE IN THE BRAZILIAN ELECTRICITY SECTOR

2016 ◽  
Vol 19 (2) ◽  
pp. 221-246 ◽  
Author(s):  
VANESSA BOANADA FUCHS
Keyword(s):  
Natural Resources ◽  
Environmental Governance ◽  
Electricity Sector ◽  
Electricity Production ◽  
Social Aspects ◽  
Electricity Supply ◽  
Democratic Participation ◽  
The People ◽  
Electricity Crisis ◽  
Belo Monte

Abstract The governance of natural resources is intrinsically linked with the governance of people. However, in practice, social aspects are often viewed as secondary to more technical and pressing issues in the implementation of projects such as dams. The use of water for electricity production in Brazil is a cas d'excellence that exemplifies how the bypassing of socio-environmental safeguards and democratic participation of affected people leads to conflicts. These conflicts delay infrastructure works, such as the Belo Monte Dam, that are found to be crucial for the equilibrium of electricity supply. Recently, social manifestation have become the scapegoat for the sector's crisis. This article discussed the "electricity crisis" from a historical policy analysis perspective. It concludes that the present disregard for social and environmental procedures is a self-inflicted disease that only contributes to the longer-term state of conflicts in the expansion of the electricity sector in Brazil.

scholarly journals Financial Leverage and its Determinants in Companies Producing Electricity from Wind Resources in Latvia

2015 ◽  
Vol 27 (1) ◽  
pp. 29-39
Author(s):  
Viktorija Bobinaite
Keyword(s):  
Weighted Average ◽  
Economic Assessment ◽  
Electricity Sector ◽  
Analysis Method ◽  
Financial Leverage ◽  
Effective Tax Rate ◽  
Financial Ratio ◽  
Tax Rate ◽  
Significant Relationships ◽  
Wind Resources

Abstract The paper aims to analyse the development of the financial leverage and its determinants in companies producing electricity from wind resources in Latvia during 2005-2012. The financial ratio technique is used to compute the financial leverage in the companies and the regression analysis method is employed to determine the relationships between variables. The results of the analysis revealed that wind electricity generating companies use substantial share of debt and the financial leverage is increasing. Statistically significant relationships were found between the financial leverage and profitability of companies, their growth opportunities, collateral value of assets, size of the company and an effective tax rate. Results will be used to construct weighted average cost of capital (WACC) for the economic assessment of investment into wind electricity sector in Latvia.

Principal Trading Arrangements: When Are Common Contracts Optimal?

2021 ◽  
Author(s):  
Markus Baldauf ◽  
Christoph Frei ◽  
Joshua Mollner
Keyword(s):  
Weighted Average ◽  
Principal Agent ◽  
Financial Contracting ◽  
Average Price ◽  
Market Prices ◽  
Principal Agent Problem ◽  
Financial Arrangements

Many financial arrangements reference market prices that are yet to be realized at the time of contracting and consequently susceptible to manipulation. Two of the most common such arrangements are as follows: (i) guaranteed volume-weighted average price (VWAP) contracts, which reference the VWAP prevailing over an execution window, and (ii) market-on-close contracts, which reference the price prevailing at the window’s end. To study such situations, we introduce a stylized model of financial contracting between a client, who wishes to trade a large position, and the client’s dealer. We provide conditions under which guaranteed VWAP contracts are optimal in this principal-agent problem. In contrast, market-on-close contracts generally cannot be optimal. These results explain the use of guaranteed VWAP contracts in practice, question the use of market-on-close contracts, and suggest considerations for the design of financial benchmarks. This paper was accepted by Haoxiang Zhu, finance.

Foundations for a Low-Carbon Energy System in China

2021 ◽  
Author(s):  
Henry Lee ◽  
Daniel P. Schrag ◽  
Matthew Bunn ◽  
Michael Davidson ◽  
Wei Peng ◽  
...  
Keyword(s):  
Fossil Fuels ◽  
Energy System ◽  
Electricity Sector ◽  
Electricity Production ◽  
Low Carbon ◽  
Electricity Pricing ◽  
Energy Policies ◽  
Near Term ◽  
Low Carbon Energy

Climate change is a key problem of the 21st century. China, as the largest emitter of greenhouse gases, has committed to stabilize its current emissions and dramatically increase the share of electricity production from non-fossil fuels by 2030. However, this is only a first step: in the longer term, China needs to aggressively strive to reach a goal of zero-emissions. Through detailed discussions of electricity pricing, electric vehicle policies, nuclear energy policies, and renewable energy policies, this book reviews how near-term climate and energy policies can affect long-term decarbonization pathways beyond 2030, building the foundations for decarbonization in advance of its realization. Focusing primarily on the electricity sector in China - the main battleground for decarbonization over the next century – it provides a valuable resource for researchers and policymakers, as well as energy and climate experts.

scholarly journals Hybrid Forecasting Model for Short-Term Electricity Market Prices with Renewable Integration

2018 ◽  
Vol 11 (1) ◽  
pp. 57 ◽  
Author(s):  
Gerardo Osório ◽  
Mohamed Lotfi ◽  
Miadreza Shafie-khah ◽  
Vasco Campos ◽  
João Catalão
Keyword(s):  
Electricity Market ◽  
Wavelet Transforms ◽  
Fuzzy Inference ◽  
Electricity Sector ◽  
Forecasting Model ◽  
Probabilistic Forecasting ◽  
Short Term ◽  
Market Prices ◽  
Inference System ◽  
Hybrid Particle Swarm Optimization

In recent years, there have been notable commitments and obligations by the electricity sector for more sustainable generation and delivery processes to reduce the environmental footprint. However, there is still a long way to go to achieve necessary sustainability goals while ensuring standards of robustness and the quality of power grids. One of the main challenges hindering this progress are uncertainties and stochasticity associated with the electricity sector and especially renewable generation. In this paradigm shift, forecasting tools are indispensable, and their utilization can significantly improve system operation and minimize costs associated with all related activities. Thus, forecasting tools have an essential key role in all decision-making stages. In this work, a hybrid probabilistic forecasting model (HPFM) was developed for short-term electricity market prices (EMP) combining wavelet transforms (WT), hybrid particle swarm optimization (DEEPSO), adaptive neuro-fuzzy inference system (ANFIS), and Monte Carlo simulation (MCS). The proposed hybrid probabilistic forecasting model (HPFM) was tested and validated with real data from the Spanish and Pennsylvania-New Jersey-Maryland (PJM) markets. The proposed model exhibited favorable results and performance in comparison with previously published work considering electricity market prices (EMP) data, which is notable.

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