Search

Begin New Search
Proceed to Checkout

Search Results for All:
(Showing results 1 to 2 of 2)



The Nordic Market: Signs of Stress?

Nils-Henrik M. von der Fehr, Eirik S. Amundsen and Lars Bergman

Year: 2005
Volume: Volume 26
Number: Special Issue
DOI: 10.5547/ISSN0195-6574-EJ-Vol26-NoSI-4
View Abstract

Abstract:
The supply shock that hit the Nordic electricity market in 2002-2003 put the market to a severe test. A sharp reduction in inflow to hydro reservoirs during the normally wet months of late autumn pushed electricity prices to unprecedented levels. We take this event as the starting point for analysing some potential weaknesses of the Nordic market. We conclude that fears regarding supply security and adequacy are likely to be unfounded. Nevertheless, as inherited over-capacity is eroded, and new market-based environmental regulation takes effect, tighter market conditions are to be expected. It is then crucial that retail markets are fully developed so as to allow consumers to adequately protect themselves from occurrences of price spikes.



Space-time modeling of electricity spot prices

Girum Dagnachew Abate and Niels Haldrup

Year: 2017
Volume: Volume 38
Number: Number 5
DOI: https://doi.org/10.5547/01956574.38.5.gaba
View Abstract

Abstract:
Using data for the Nord Pool power grid, we derive a space-time Durbin model for electricity spot prices with both temporal and spatial lags. Joint modeling of temporal and spatial adjustment effects is necessarily important when prices and loads are determined in a network grid. By using different spatial weight matrices, statistical tests show significant spatial dependence in the spot price dynamics across areas. In fact, estimation of the model shows that the spatial dependence is as important as the temporal dependence in describing the spot price dynamics. We decompose price impacts into direct and indirect effects and demonstrate how price effects transmit to neighboring markets and decline with distance. A forecasting comparison with a non-spatial model shows that the space-time model improves forecasting performance for 7 and 30 days ahead forecasts. A model with time-varying parameters is estimated for an expanded sample period and it is found that the spatial correlation within the power grid has increased over time. We interpret this to indicate an increasing degree of market integration within the sample period.





Begin New Search
Proceed to Checkout

 

© 2024 International Association for Energy Economics | Privacy Policy | Return Policy