An analysis of electricity congestion price patterns in North America

Frédéric Godin and Zinatu Ibrahim

Energy Economics, 2021, vol. 102, issue C

Abstract: The present paper illustrates the use of principal component analysis (PCA) on the congestion component of local (i.e. zonal) electricity price data to detect the most salient congestion patterns in electricity transmission grids managed by either a Regional Transmission Organization (RTO) or an Independent System Operator (ISO). Outputs from the PCA along with some data visualization tools are shown to make the identification of such patterns seamless and straightforward. An empirical analysis is conducted for three North American power systems, namely NYISO, ISO New England and PJM. Finally, a simple time series model representing the evolution of PCA scores is proposed.

Keywords: Principal component analysis; Power markets; Electricity grid; Transmission constraints; Congestion price (search for similar items in EconPapers)
JEL-codes: C38 L94 (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:eneeco:v:102:y:2021:i:c:s0140988321003893

DOI: 10.1016/j.eneco.2021.105506

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