Competition and Merit Order Effect in the Colombian Electricity Market

Alex Perez, Jaime Carabali and Julian Benavides-Franco
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Jaime Carabali: Data Analyst, Banco W, Cali, Colombia,
Julian Benavides-Franco: Chair of Department of Accounting and Finance Studies, Universidad ICESI, Cali, Colombia.

International Journal of Energy Economics and Policy, 2022, vol. 12, issue 1, 144-155

Abstract: In this paper, we study the relationship between the merit order effect and the ownership structure of renewable resources in electricity markets. We use daily frequency data from the Colombian electricity market in 2012-2019 and designed a strategy to estimate the spot price s dependence on renewable energy. We study how the participation of multi-technology firms in renewable energy alters the spot price. Our main results show a merit order effect for the Colombian electricity market, but this weakens in the presence of greater participation of multi-technology firms in the total availability of renewable energy for the day.

Keywords: Merit Order Effect; Renewable Energy; Electricity Spot Markets; Imperfect Competition (search for similar items in EconPapers)
JEL-codes: D43 L11 L12 L94 Q49 (search for similar items in EconPapers)
Date: 2022
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:eco:journ2:2022-01-18

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