Understanding the Determinants of Electricity Prices and the Impact of the German Nuclear Moratorium in 2011

Thoenes, Stefan

doi:10.5547/01956574.35.4.3

Cited by 22 publications

(18 citation statements)

References 26 publications

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“…The price decrease, induced by wind, is less strong when the nuclear capacity is removed. This results are confirmed by findings of Thoenes (2011). (2010) and Gruet (2011).…”

supporting

confidence: 85%

The impact of wind power generation on the electricity price in Germany

Ketterer¹

2014

Energy Economics

419

250

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. This paper provides insight into the relationship between intermittent wind power generation and electricity price behaviour in Germany. Using a GARCH model, the effect of wind electricity in-feed on level and volatility of the electricity price can be evaluated in an integrated approach. The results show that variable wind power reduces the price level but increases its volatility. With a low and volatile wholesale price, the profitability of electricity plants, conventional or renewable, is more uncertain. Consequently, the construction of new plants is at risk, which has major implications for the energy market and the security of supply. These challenges, related to the integration of renewables, require adjustments to the regulatory and the policy framework of the electricity market. This paper's results suggest that regulatory change is able to stabilise the wholesale price. It is found that the electricity price volatility has decreased in Germany after the marketing mechanism of renewable electricity was modified. This gives confidence that further adjustments to regulation and policy may foster a better integration of renewables into the power system. JEL Code: Q42, Q48, C22. Terms of use: Documents in

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“…The price decrease, induced by wind, is less strong when the nuclear capacity is removed. This results are confirmed by findings of Thoenes (2011). (2010) and Gruet (2011).…”

supporting

confidence: 85%

The impact of wind power generation on the electricity price in Germany

Ketterer¹

2014

Energy Economics

419

250

View full text Add to dashboard Cite

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“…In the reduced-form world, some authors have suggested modeling power and fuels as cointegrated processes (cf. [47,18,44,74]), while others have suggested multi-commodity Lévy based models with various ways of capturing correlations between jumps and/or diffusion components. (cf.…”

Section: 4mentioning

confidence: 99%

A Survey of Commodity Markets and Structural Models for Electricity Prices

Carmona

Coulon

2013

Quantitative Energy Finance

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Abstract. The goal of this survey is to review the major idiosyncrasies of the commodity markets and the methods which have been proposed to handle them in spot and forward price models. We devote special attention to the most idiosyncratic of all: electricity markets. Following a discussion of traded instruments, market features, historical perspectives, recent developments and various modeling approaches, we focus on the important role of other energy prices and fundamental factors in setting the power price. In doing so, we present a detailed analysis of the structural approach for electricity, arguing for its merits over traditional reduced-form models. Building on several recent articles, we advocate a broad and flexible structural framework for spot prices, incorporating demand, capacity and fuel prices in several ways, while calculating closed-form forward prices throughout.

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“…Además, estos modelos se han usado para analizar otros aspectos del mercado eléctrico, como evaluar el impacto de permisos a emisiones y moratoria nuclear (Thoenes 2015), así como para relacionar los precios de electricidad entre los distintos estados de Estados Unidos (Park, Mjelde y Bessler, 2006).…”

Section: Literaturaunclassified