Pricing of electricity futures based on locational price differences: The case of Finland

Junttila, Juha-Pekka; Myllymäki, Valtteri; Raatikainen, Juhani

doi:10.1016/j.eneco.2018.02.018

Cited by 11 publications

(9 citation statements)

References 20 publications

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“…For this reason, electricity futures trading is more extensive than spot trading. There are also many studies concerning the electricity futures market (e.g., [5][6][7][8]).…”

Section: Introductionmentioning

confidence: 99%

Influence of Fluctuations in Fossil Fuel Commodities on Electricity Markets: Evidence from Spot and Futures Markets in Europe

Liu

Nakajima

et al. 2020

Energies

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Using a fresh empirical approach to time-frequency domain frameworks, this study analyzes the return and volatility spillovers from fossil fuel markets (coal, natural gas, and crude oil) to electricity spot and futures markets in Europe. In the time domain, by an approach developed by Diebold and Yilmaz (2012) which can analyze the directional spillover effect across different markets, we find natural gas has the highest return spillover effect on electricity markets followed by coal and oil. We also find that return spillovers increase with the length of the delivery period of electricity futures. In the frequency domain, using the methodology proposed by Barunik and Krehlik (2018) that can decompose the spillover effect into different frequency bands, we find most of the return spillovers from fossil fuels to electricity are produced in the short term while most of the volatility spillovers are generated in the long term. Additionally, dynamic return spillovers have patterns corresponding to the use of natural gas for electricity generation, while volatility spillovers are sensitive to extreme financial events.

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“…For this reason, electricity futures trading is more extensive than spot trading. There are also many studies concerning the electricity futures market (e.g., [5][6][7][8]).…”

Section: Introductionmentioning

confidence: 99%

Influence of Fluctuations in Fossil Fuel Commodities on Electricity Markets: Evidence from Spot and Futures Markets in Europe

Liu

Nakajima

et al. 2020

Energies

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“…Figure 9 shows the economic characteristics of the CHP plant operation in the five cases. Equation (2) has been customized for each case. The payback period (years)…”

Section: Case 5: Optimized Cogeneration Regime At Partial Load (30% Hmentioning

confidence: 99%

“…Figure 9 shows the economic characteristics of the CHP plant operation in the five cases. Equation (2) has been customized for each case. When estimating the market prices for heat and electricity generated in the CHP plant, the basic principle of cogeneration should be considered: the costs of heat and electricity generated in cogeneration must not be higher than in the case of separate electricity and heat generation.…”

Section: Case 5: Optimized Cogeneration Regime At Partial Load (30% Hmentioning

confidence: 99%

“…Figure 9 shows the economic characteristics of the CHP plant operation in the five cases. Equation (2) has been customized for each case. The main goal of the proposed algorithm is to establish the operating strategies of the cogeneration plant according to revenue potentials in the different markets.…”

Section: Case 5: Optimized Cogeneration Regime At Partial Load (30% Hmentioning

confidence: 99%

“…The ability to forecast prices on the power market is important for energy producers in long-term strategic planning [1][2][3]. In reference [4], the authors analyze the interaction between the green certificate prices, the carbon dioxide emission price, and the electricity prices in Nord Pool Spot.…”

Section: Introductionmentioning

confidence: 99%

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The Operating Strategies of Small-Scale Combined Heat and Power Plants in Liberalized Power Markets

Atănăsoae

2018

Energies

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Distributed generation is a good option for future energy systems with respect to sustainable development. In this context, the small-scale combined heat and power (CHP) plants are seen as an efficient way to reduce greenhouse gas emissions due to lower fuel consumption compared to the separate generation of the heat and electricity. The objective of this paper is to establish operating strategies of the small-scale CHP plants to reduce operational cost and increase revenue in liberalized electricity markets. It analyzes a cogeneration plant with organic Rankine cycle and biomass fuel under the conditions of the Romanian electricity market and the green certificates support scheme for electricity generated in high efficiency cogeneration and from renewable sources. The main finding is that choosing an appropriate mode of operation and using correlated prices of heat and electricity can increase the trading profitability of a CHP plant in liberalized power markets. This can be done by an analysis of the particularities and the specific operating conditions of the CHP plant. The results show that the operating strategies of the CHP plant can yield substantial net revenues from electricity and heat sales. The CHP plant can be economically operated to a useful heat load of more than 40% when operating strategies are applied.

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Analysis of Forecasting Models in Electricity Market Under Volatility: What We Learn from Sweden

Uddin

Tang

Sahamkhadam

et al. 2022

Revisiting Electricity Market Reforms

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Pricing of electricity futures based on locational price differences: The case of Finland

Cited by 11 publications

References 20 publications

Influence of Fluctuations in Fossil Fuel Commodities on Electricity Markets: Evidence from Spot and Futures Markets in Europe

Influence of Fluctuations in Fossil Fuel Commodities on Electricity Markets: Evidence from Spot and Futures Markets in Europe

The Operating Strategies of Small-Scale Combined Heat and Power Plants in Liberalized Power Markets

Analysis of Forecasting Models in Electricity Market Under Volatility: What We Learn from Sweden

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