Dead Battery? Wind Power, the Spot Market, and Hydropower Interaction in the Nordic Electricity Market

Mauritzen, Johannes

doi:10.5547/01956574.34.1.5

Cited by 35 publications

(22 citation statements)

References 17 publications

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“…The same is true for wind power penetration in model 5. Because the spot market transmission flows are likely to be endogenous with the price volatility, we cannot draw causal conclusions about their impact (Mauritzen, 2013). However, model 4 for DK1 suggests that exports during morning off-peak hours are positively correlated with daily price volatility, but, during peak hours, the correlation is negative.…”

Section: Daily Volatilitymentioning

confidence: 99%

“…By adopting the same time-series framework as in Mauritzen (2010), Mauritzen (2013) investigates how wind power affects the cross-border transmission of electricity between Denmark and Norway. His conclusion is that when more (less) wind power is produced in Denmark, exports to (imports from) Norway are higher while Norwegian hydropower plants produce less (more).…”

Section: Literature Reviewmentioning

confidence: 99%

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Does renewable energy generation decrease the volatility of electricity prices? An analysis of Denmark and Germany

Rintamäki¹,

Siddiqui

Salo³

2017

Energy Economics

167

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Although variable renewable energy (VRE) technologies with zero marginal costs decrease electricity prices, the literature is inconclusive about how the resulting shift in the supply curves impacts price volatility. Because the flexibility to respond to high peak and low offpeak prices is crucial for demand-response applications and may compensate for the losses of conventional generators caused by lower average prices, there is a need to understand how the penetration of VRE affects volatility. In this paper, we build distributed lag models with Danish and German data to estimate the impact of VRE generation on electricity price volatility. We find that in Denmark wind power decreases the daily volatility of prices by flattening the hourly price profile, but in Germany it increases the volatility because it has a stronger impact on off-peak prices. Our analysis suggests that access to flexible generation capacity and wind power generation patterns contribute to these differing impacts. Meanwhile, solar power decreases price volatility in Germany. By contrast, the weekly volatility of prices increases in both areas due to the intermittency of VRE. Thus, policy measures for facilitating the integration of VRE should be tailored to such region-specific patterns.

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Section: Daily Volatilitymentioning

confidence: 99%

Section: Literature Reviewmentioning

confidence: 99%

Does renewable energy generation decrease the volatility of electricity prices? An analysis of Denmark and Germany

Rintamäki¹,

Siddiqui

Salo³

2017

Energy Economics

167

View full text Add to dashboard Cite

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“…However, they did not include any forecasted renewable power generation. And, more recent papers have analysed the impact of RES on wholesale electricity price dynamics, see Jónsson et al (2010), Gelabert et al (2011), Woo et al (2011), Mauritzen (2013, Ketterer (2014), Paraschiv et al (2014), Martinez-Anido et al…”

Section: Literature Reviewmentioning

confidence: 99%

Comparing the forecasting performances of linear models for electricity prices with high RES penetration

Gianfreda

Ravazzolo

Rossini

2020

International Journal of Forecasting

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This paper compares alternative univariate versus multivariate models, frequentist versus Bayesian autoregressive and vector autoregressive specifications, for hourly day-ahead electricity prices, both with and without renewable energy sources. The accuracy of point and density forecasts are inspected in four main European markets (Germany, Denmark, Italy and Spain) characterized by different levels of renewable energy power generation. Our results show that the Bayesian VAR specifications with exogenous variables dominate other multivariate and univariate specifications, in terms of both point and density forecasting.

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“…However, this may lead to significant power surpluses at times of high potential. Another way is the utilization of energy storage, which not only allows excess energy to be accumulated, but also its use at a suitable time and in appropriate amounts (Mauritzen 2013).…”

Section: Introductionmentioning

confidence: 99%

Study of wind power utilization in district heating systems in the Westfjords, Iceland

Mathews

Sowiżdżał

2019

geol

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Some Renewable Energy Sources (RES), such as wind power, are often regarded as intermittent. That means they are not available on demand, but rather depend on external conditions e.g. such as the weather. In order to manage these resources, it is advised to combine them with energy storage or other energy sectors, what is known as "sector coupling". This approach is set to mitigate the negative impact of unstable renewable energy sources and manage the generated surpluses. In this study, a system combining wind turbines, district heating network and short-term thermal energy storage was proposed and examined for the instance of the Westfjords, Iceland. Ísafjörður, Patreksfjörður, Bolungarvík and Flateyri are the exemplary communities with existing district heating networks, chosen to investigate the implementation of the system. A short review of the current state of the energy sector in Iceland was provided to present the local conditions. Wind potential in the described area was estimated as high in comparison with average wind turbine generation in the European Union and a few instances of wind turbines placement were analyzed in this study. For locations close to the district heating network, a long-term correlation between power generation and usage was proven. However, locating wind turbines in places with better wind conditions, provides stable output and a similar amount of energy produced by fewer generators.

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Dead Battery? Wind Power, the Spot Market, and Hydropower Interaction in the Nordic Electricity Market

Cited by 35 publications

References 17 publications

Does renewable energy generation decrease the volatility of electricity prices? An analysis of Denmark and Germany

Does renewable energy generation decrease the volatility of electricity prices? An analysis of Denmark and Germany

Comparing the forecasting performances of linear models for electricity prices with high RES penetration

Study of wind power utilization in district heating systems in the Westfjords, Iceland

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