The growing importance of natural gas as a predictor for retail electricity prices in US

Alexopoulos, Thomas A.

doi:10.1016/j.energy.2017.07.002

Cited by 33 publications

(13 citation statements)

References 38 publications

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“…The output of coal-fired power stations, which have also suffered a reduction in their contribution to the generation mix mainly in the first weeks of the lockdown period, is also relatively rigid. The most flexible are combined-cycle power plants ( Alexopoulos, 2017 ), which, together with pumped-storage plants, enable to be used to adjust generation and demand, when variations in expected demand or fluctuations in renewable production occur. This type of generation has experienced a variation in its participation percentage during this period, as can be seen in Fig.…”

Section: Resultsmentioning

confidence: 99%

“…In addition to this, fluctuations in the price of raw materials such as coal, fuel, or natural gas have also taken place during this period ( Holder, 2020 ) ( Ding et al, 2020 ). Oil and natural gas have experienced during this period an unprecedented reduction of their selling prices ( Ghiani et al, 2020 ) which has also been reflected in the total price of electricity ( Alexopoulos, 2017 ) ( Furió and Chuliá, 2012 ).…”

Section: Resultsmentioning

confidence: 99%

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Electricity demand during pandemic times: The case of the COVID-19 in Spain

et al. 2021

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Electricity demand and its typical load pattern are usually affected by many endogenous and exogenous factors to which the generation system must accordingly respond through utility operators. Lockdown measures to prevent the spread of COVID-19 imposed by many countries have led to sudden changes in socioeconomic habits which have had direct effects on the electricity systems. Therefore, a detailed analysis of how confinement measures have modified the electricity consumption in Spain, one of the countries most affected by this pandemic, has been performed in this work. Its electricity consumption has decreased by 13.49% from March 14 to April 30, compared to the average value of five previous years. Daily power demand profiles, especially morning and evening peaks, have been modified at homes, hospitals, and in the total power demand. These changes generate a greater uncertainty for the System Operator when making demand forecasts, but production deviations have increased by only 0.1%, thanks to the presence of a diversified generation mix, which has been modified during this period, increasing the proportion of renewable sources and decreasing CO 2 emissions.

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Section: Resultsmentioning

confidence: 99%

Section: Resultsmentioning

confidence: 99%

Electricity demand during pandemic times: The case of the COVID-19 in Spain

et al. 2021

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“…For this reason, many authors have studied NG as a "bridge fuel" or "transition fuel" to low carbon energy sources (Cathles, 2012;Howarth, 2014;Levi, 2013). In some countries, mainly in developing countries as Brazil, NG has been considered an energy security resource, which would allow countries to gradually change their energy mix with the predominance of fossil sources (including oil and coal) to a so-called more sustainable mix through the participation of renewable energy sources (Alexopoulos, 2017;Colombo et al, 2016;Santos et al, 2007;Zhang et al, 2016).…”

Section: Introductionmentioning

confidence: 99%

Liquefied natural gas road transport: a simulation study in Mato Grosso, Brazil

et al. 2021

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The aim of this article is to evaluate the viability of transporting Liquified Natural Gas (LNG) by truck in the Mato Grosso (MT) state, Brazil, comparing the costs of substituting other energy sources for the Bolivian Natural Gas (NG) and estimating the potential available market in the five mesoregions of the state. The simulation results show a potential NG market of 2.1 MMm3/day at a competitive cost compared to the assessed fuels in the economic sectors evaluated in the MT state. LNG transported by road has shown to be more advantageous than electric energy and diesel oil. On the other hand, fuel oil costs were slightly lower than NG costs. This simulation can serve as inspiration to extend the use of small-scale LNG by road in states or countries with similar characteristics, especially those with the possibility of the constant supply of NG and limited pipeline network.

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“…Efimova and Serletis [12] investigated the relationships between fossil fuel and power price volatilities using multivariate generalized autoregressive conditional heteroskedasticity (GARCH) models. Alexopoulos [13] examined the performance of natural gas prices as a predictor for power prices at national and regional levels. They argued that, besides lower gas prices, the growing importance of gas as a predictor for power prices needs the existence of sufficient gas infrastructures and/or competitive market environments.…”

Section: Introductionmentioning

confidence: 99%

Examination of the Spillover Effects among Natural Gas and Wholesale Electricity Markets Using Their Futures with Different Maturities and Spot Prices

Nakajima

Toyoshima

2020

Energies

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This study measures the connectedness of natural gas and electricity spot returns to their futures returns with different maturities. We employ the Henry Hub and the Pennsylvania, New Jersey, and Maryland (PJM) Western Hub Peak as the natural gas price indicator and the wholesale electricity price indicator, respectively. We also use each commodity’s spot prices and 12 types of futures prices with one to twelve months maturities and realize results in fourfold. First, we observe mutual spillover effects between natural gas futures returns and learn that the natural gas futures market is integrated. Second, we observe the spillover effects from natural gas futures returns to natural gas spot returns (however, the same is not evident for natural gas spot returns to natural gas futures returns). We find that futures markets have better natural gas price discovery capabilities than spot markets. Third, we observe the spillover effects from natural gas spot returns to electricity spot returns, and the spillover effects from natural gas futures returns to electricity futures returns. We learn that the marginal cost of power generation (natural gas prices) is passed through to electricity prices. Finally, we do not observe any spillover effects amongst electricity futures returns, except for some combinations, and learn that the electricity futures market is not integrated.

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The growing importance of natural gas as a predictor for retail electricity prices in US

Cited by 33 publications

References 38 publications

Electricity demand during pandemic times: The case of the COVID-19 in Spain

Electricity demand during pandemic times: The case of the COVID-19 in Spain

Liquefied natural gas road transport: a simulation study in Mato Grosso, Brazil

Examination of the Spillover Effects among Natural Gas and Wholesale Electricity Markets Using Their Futures with Different Maturities and Spot Prices

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