The dependence of quantile power prices on supply from renewables

Ronald Huisman and Cristian Stet

Energy Economics, 2022, vol. 105, issue C

Abstract: Understanding 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.

Keywords: Power market flexibility; Supply from variable renewable sources; Extreme power prices; Panel quantile regression (search for similar items in EconPapers)
JEL-codes: C21 C23 G17 Q41 Q42 Q47 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:eneeco:v:105:y:2022:i:c:s0140988321005351

DOI: 10.1016/j.eneco.2021.105685

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