The dependence of quantile power prices on supply from renewables

Simple item page
dc.contributor.authorHuisman, Ronald en_US
dc.contributor.authorStet, Cristian en_US
dc.date.accessioned2025-01-14T05:51:50Z
dc.date.available2025-01-14T05:51:50Z
dc.date.issued2022
dc.description.abstractUnderstanding power prices dynamics is crucial for valuing flexibility assets such as storage or flexible consumption facilities that accommodate fluctuations in power supply from variable renewables. Owners of such assets need to know how extreme power prices can become in order to optimally manage (dis)charging or adjusting consumption volumes. We examine how to predict those high and low prices, being the different quantiles of the power price probability distribution function, and question how supply from variable renewable sources affect different quantile prices. The first contribution of our paper is that we apply quantile regressions in a panel data framework. This methodology acknowledges that day-ahead power markets’ data is structured as cross-sectional data and, as opposed to previous quantile regression techniques introduced in power markets, allows for simultaneous predictions for all hours during a delivery day. Day-ahead power prices for all 24 h in the next day are determined at the same moment, one day before delivery. The hourly data is therefore not a time-series, but a cross section. The second contribution is that we examine the interaction between demand and supply from variable renewable sources, instead of linear dependencies only. We find that lower and higher quantile prices are more heavily affected by variations in supply from variable renewable sources than centre quantile prices. This enables owners of flexibility assets to better manage their assets in anticipation of excess or scarce supply from renewable sources. By doing so, they increase the flexibility of power systems that face increasing installed capacity of variable renewable energy sources. en_US
dc.identifier.citationHuisman R. The dependence of quantile power prices on supply from renewables / Huisman R., Stet S. // Energy Economics. - 2022. - Vol. 105. - Article number 105685. - https://doi.org/10.1016/j.eneco.2021.105685 en_US
dc.identifier.issn0140-9883
dc.identifier.urihttps://doi.org/10.1016/j.eneco.2021.105685
dc.identifier.urihttps://ekmair.ukma.edu.ua/handle/123456789/33133
dc.language.isoen en_US
dc.relation.sourceEnergy Economics en_US
dc.statusfirst published en_US
dc.subjectpower market flexibility en_US
dc.subjectsupply from variable renewable sources en_US
dc.subjectextreme power prices en_US
dc.subjectpanel quantile regression en_US
dc.subjectarticle en_US
dc.titleThe dependence of quantile power prices on supply from renewables en_US
dc.typeArticle en_US
Files
Original bundle
Now showing 1 - 1 of 1
Thumbnail Image
Name:
Huisman_Stet_The_dependence_of_quantile_power_prices on_supply_from_renewables.pdf
Size:
2.41 MB
Format:
Adobe Portable Document Format
Download
License bundle
Now showing 1 - 1 of 1
No Thumbnail Available
Name:
license.txt
Size:
1.71 KB
Format:
Item-specific license agreed upon to submission
Description:
Download
Collections
Кафедра менеджменту організацій