Effects of the COVID-19 Pandemic on the Spot Price of Colombian Electricity

Andrés Oviedo-Gómez, Sandra Milena Londoño-Hernández and Diego Fernando Manotas-Duque
Additional contact information
Andrés Oviedo-Gómez: School of Electrical and Electronic Engineering, Universidad del Valle, 76001 Cali, Colombia
Sandra Milena Londoño-Hernández: School of Electrical and Electronic Engineering, Universidad del Valle, 76001 Cali, Colombia
Diego Fernando Manotas-Duque: School of Industrial Engineering, Universidad del Valle, 76001 Cali, Colombia

Energies, 2021, vol. 14, issue 21, 1-14

Abstract: COVID-19 disease shocked global economic activity and affected the electricity markets due to lockdown and work-from-home policies. Therefore, this study proposes an empirical analysis to identify the electricity spot price response during the preventive and mandatory insulation in Colombia, where the economic contraction caused the largest decrease in the electricity demand, especially in the industrial sector. The methodology applied was quantile regression to quantify the non-linear effect on the spot price returns, and two sample periods were selected to contrast the results: 2018 and 2019. The main findings showed that regulated demand variation caused the highest variability on the spot price dynamic during the strict quarantine. However, the price could not fully capture the effects of the demand change due to the short duration of the shock and, also, the price variability in 2019 was higher than 2020 by an El Niño shock.

Keywords: COVID-19; pandemic; lockdown; electricity prices; electricity demand; electricity market; quantile regression approach (search for similar items in EconPapers)
JEL-codes: Q Q0 Q4 Q40 Q41 Q42 Q43 Q47 Q48 Q49 (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)

Downloads: (external link)
https://www.mdpi.com/1996-1073/14/21/6989/pdf (application/pdf)
https://www.mdpi.com/1996-1073/14/21/6989/ (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:gam:jeners:v:14:y:2021:i:21:p:6989-:d:664220

Access Statistics for this article

Energies is currently edited by Ms. Agatha Cao

More articles in Energies from MDPI
Bibliographic data for series maintained by MDPI Indexing Manager ().