Econometric models of power prices: An approach to market monitoring in the Western US

Meeting the Modeling Needs of Future Energy Systems

“…Other quantitative approaches, such as econometric, time‐series, and financial models, follow a macroeconomic approach and try to explain the development of a macroeconomic variable on the basis of the development of other parameters . Some econometric time‐series models based on an ARMA or a GARCH process focus on deterministic patterns and autocorrelation in price series or other electricity market data (e.g., load) and incorporate explanatory variables, such as demand, renewable energy production, and temperature, to identify fundamental drivers of the main market parameters . Other models based on time series incorporate large amounts of solar and wind data to analyze the possibility of balancing fluctuations of electricity generation from volatile sources in the European energy system .…”

The Study of Electricity Market Monitoring Index System

“…According to the domestic and international relevant research on the duty of market monitoring department of the U.S, the main purpose of electricity market monitoring can be summarized two points as follows: Firstly, monitoring non-competitive behaviors in the market to achieve early warning function , it could provide support for investigating these acts in the market to ensure effective competition [3]. Secondly, finding and giving a feedback of the flaws in the market rules and structural design, providing support for establishing a perfect and effective power market [4].…”