A history of European electricity day-ahead prices

Huisman, Ronald; Kilic, Mehtap

doi:10.1080/00036846.2012.665601

Cited by 43 publications

(22 citation statements)

References 11 publications

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“…Given the ongoing structural changes taking place in both renewable energy and natural gas markets over the period considered, two different approaches have been used, namely cointegration analysis and a time‐varying coefficient model. The explicit presence of time‐varying parameters, i.e., the presence of potential breaks in both natural gas and PV prices, makes the latter technique better suited for our analysis than the cointegration approach because it can capture contextual changes . However, we applied both approaches to (1) make it possible to identify special events within the whole period studied and (2) because the two methods complement each other.…”

Section: Introductionmentioning

confidence: 99%

“…The explicit presence of time-varying parameters, i.e., the presence of potential breaks in both natural gas and PV prices, makes the latter technique better suited for our analysis than the cointegration approach because it can capture contextual changes. 22,35,36 However, we applied both approaches to (1) make it possible to identify special events within the whole period studied and (2) because the two methods complement each other. For instance, if a given market was undergoing the process of integration during the study period, 'the cointegration approach may lead one to conclude that the market is not integrated, even if convergence and integration have been accomplished during the latter part of the period.'…”

Section: Introductionmentioning

confidence: 99%

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An assessment of price convergence between natural gas and solar photovoltaic in the U.S. electricity market

Nyangon

Byrne

Taminiau

2016

WIREs Energy & Environment

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The U.S. shale boom has exerted downward pressure on natural gas prices nationally, widened oil‐to‐gas price spreads, and accelerated coal‐to‐gas fuel substitution. One concern is the impact of the rising production of shale gas on further development of a domestic solar photovoltaic (PV) market. Specifically, will lower natural gas prices slow or even reverse the current rapid growth in the solar market? Using the Phillips–Sul convergence test, this paper investigates whether the levelized cost of energy (LCOE) of solar PV and natural gas electricity generation in the United States have converged. Using weekly Henry Hub‐linked natural gas spot prices and utility PV system prices from 2010 to 2015, empirical tests for convergence are applied to examine the extent of spot market integration and the speed with which market forces move the two energy prices toward equilibrium. The paper also assesses the link between the MAC Solar Energy Index (SUNIDX) and the S&P GSCI natural gas index spot prices for evidence of market integration during 2007–2015. We conclude that PV and natural gas prices are not converging, and the two markets are not integrated nationally, but some level of integration could exist at regional and state levels that will need to be tested in future research. We also conclude that complementary use of the technologies is likely; while price convergence is not likely to occur soon, distinctive complementary benefits of each resource compared to each other (e.g., fast‐start capabilities for gas and low price volatility for PV) will offer opportunities that expand market demand for both. WIREs Energy Environ 2017, 6:e238. doi: 10.1002/wene.238 This article is categorized under: Photovoltaics > Economics and Policy Energy Systems Economics > Systems and Infrastructure

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Section: Introductionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

An assessment of price convergence between natural gas and solar photovoltaic in the U.S. electricity market

Nyangon

Byrne

Taminiau

2016

WIREs Energy & Environment

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“…Janssen et al (2011) and Wobben (2009) analyze European transmission rights as financial instruments. The improved efficiency of the power system and the resulting price convergence that it entailed attracted a lot of attention (De Jong et al 2007;Dijkgraaf and Janssen 2009;Huisman and Kilic 2011;Kurziden 2010;Parisio and Bosco 2008;Pellini 2011;Zachmann 2008).…”

Section: Introductionmentioning

confidence: 99%

Financial Transmission Rights

Rosellón¹,

Kristiansen²

2013

Lecture Notes in Energy

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“…Bosco et al [15] conclude that average prices in the German and French markets were integrated. Likewise, Huisman and Kilic [16] observed a similarity in the parameter estimates of the Belgian, Dutch, French, German and Nordic prices modeling, and also noted a decrease in the impact of price spikes and volatility. In addition, Bunn and Gianfreda [9], in an analysis of price levels and volatilities, find evidence of increasing market integration between Germany, France, Spain, the Netherlands and the UK.…”

Section: Introductionmentioning

confidence: 99%

Are Energy Market Integrations a Green Light for FDI?

2015

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Within the IEB framework, the Chair of Energy Sustainability promotes research into the production, supply and use of the energy needed to maintain social welfare and development, placing special emphasis on economic, environmental and social aspects. There are three main research areas of interest within the program: energy sustainability, competition and consumers, and energy firms. The energy sustainability research area covers topics as energy efficiency, CO2 capture and storage, R+D in energy, green certificate markets, smart grids and meters, green energy and biofuels. The competition and consumers area is oriented to research on wholesale markets, retail markets, regulation, competition and consumers. The research area on energy firms is devoted to the analysis of business strategies, social and corporative responsibility, and industrial organization. Disseminating research outputs to a broad audience is an important objective of the program, whose results must be relevant both at national and international level.The Chair of Energy Sustainability of the University of Barcelona-IEB is funded by the following enterprises ACS, CEPSA, CLH, Enagas, Endesa, FCC Energia, HC Energia, Gas Natural Fenosa, and Repsol) through FUNSEAM (Foundation for Energy and Environmental Sustainability). The IEB working papers represent ongoing research that is circulated to encourage discussion and has not undergone a peer review process. Any opinions expressed here are those of the author(s) and not those of IEB. Documents de Treball de l'IEB 2015/18 ARE ENERGY MARKET INTEGRATIONS A GREEN LIGHT FOR FDI?María Teresa Costa-Campi, Jordi Paniagua, Elisa Trujillo-Baute ABSTRACT: This paper studies the effect of energy market integration (EMI) on foreign direct investment (FDI). EMIs diminish energy uncertainty and price volatility in the host country and affect FDI through two channels: first, by harmonizing energy prices and, second, by reducing price dispersion. FDI may, as a result, increase both within and outside the EMI area, through energy stability mechanisms and price mechanisms, respectively. An empirical application on a global dataset including bilateral FDI data, during 2003-2012, using the gravity equation, shows that the integration of Portugal and Spain's electricity market in 2007 increased the amount of FDI's participants. Additionally, a positive increase in FDI from neighboring countries (in this instance, France), albeit lower in magnitude, is observed.JEL Codes: F20, F21, F23, Q40, Q43

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A history of European electricity day-ahead prices

Cited by 43 publications

References 11 publications

An assessment of price convergence between natural gas and solar photovoltaic in the U.S. electricity market

An assessment of price convergence between natural gas and solar photovoltaic in the U.S. electricity market

Financial Transmission Rights

Are Energy Market Integrations a Green Light for FDI?

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