Now or Later? Trading wind power closer to real-time and how poorly designed subsidies lead to higher balancing costs

Johannes Mauritzen ()
Additional contact information
Johannes Mauritzen: Dept. of Business and Management Science, Norwegian School of Economics, Postal: NHH , Department of Business and Management Science, Helleveien 30, N-5045 Bergen, Norway

No 2013/1, Discussion Papers from Norwegian School of Economics, Department of Business and Management Science

Abstract: An important challenge facing many deregulated electricity markets is dealing with the increasing penetration of intermittent generation. Simulation studies have pointed to the advantages of trading closer to real-time with large amounts of intermittent generation. Using Danish data, I show that, as expected, shortfalls increase the probability of trade on the shortterm market. But in the period between 2010 and 2012 surpluses are shown to decrease the probability of trade. This unexpected result is likely explained by wind power policies that discourages trading on Elbas and leads to unnecessarily high balancing costs. I use a rollingwindow regression to support this claim.

Keywords: Deregulated electricity markets; intermittent generation; wind power (search for similar items in EconPapers)
JEL-codes: Q42 Q48 (search for similar items in EconPapers)
Pages: 22 pages
Date: 2013-04-25
New Economics Papers: this item is included in nep-ene and nep-reg
References: Add references at CitEc
Citations:

Downloads: (external link)
http://www.nhh.no/Files/Filer/institutter/for/dp/2013/0113.pdf (application/pdf)
Our link check indicates that this URL is bad, the error code is: 500 Can't connect to www.nhh.no:80 (A connection attempt failed because the connected party did not properly respond after a period of time, or established connection failed because connected host has failed to respond.)

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:hhs:nhhfms:2013_001

Access Statistics for this paper

More papers in Discussion Papers from Norwegian School of Economics, Department of Business and Management Science NHH, Department of Business and Management Science, Helleveien 30, N-5045 Bergen, Norway. Contact information at EDIRC.
Bibliographic data for series maintained by Stein Fossen ().