Impact of wind-hydro dynamics on electricity price: A seasonal spatial econometric analysis

Wen, Le; Suomalainen, Kiti; Sharp, Basil; Yi, Ming; Sheng, Mingyue

doi:10.1016/j.energy.2021.122076

Cited by 21 publications

(20 citation statements)

References 50 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…Hydropower is a contributor to the merit order effect [33] since hydropower plants have low marginal cost and can supply cheaper electricity in the wholesale market, thus lowering the system price. This is consistent with studies on the average (mean effects) relationship between hydropower and price [20,24]. While our results confirm the average reduction in system electricity price with increased generation from hydropower, the reduction is greater when considering extreme electricity prices.…”

Section: Discussionsupporting

confidence: 92%

“…The conditional models were especially useful for observing patterns at extremes of price and price volatility. Findings on the average (mean effects) reduction in price as the percentage of hydropower increases in the energy generation mix are consistent with literature [20,24] and the merit order effect [33]. Additionally, we find that hydropower contributes to a greater reduction in system price at higher quantiles.…”

Section: Discussionsupporting

confidence: 89%

“…Unlike coal and natural gas, it is not impacted by fossil fuel market fluctuations [8]. While there are seasonal variations due to the availability of water, large reservoirs can mitigate this risk [20]. Hydropower provides more stable and predictable generation when compared to VREs.…”

Section: Introductionmentioning

confidence: 99%

“…A novel contribution of this study is the analysis of quantile effects between hydropower and price and price volatility since previous studies have predominantly focused on quantifying mean effects [24,25,20]. The quantification of quantile effects gives us insight into the relationship at extreme electricity prices given the skewed nature of its distribution (Table 1).…”

Section: Introductionmentioning

confidence: 99%

See 3 more Smart Citations

A Robust Statistical Analysis of the Role of Hydropower on the System Electricity Price and Price Volatility

Owolabi¹,

Lawson²,

Sengupta³

et al. 2022

Preprint

View full text Add to dashboard Cite

Hydroelectric power (hydropower) is unique in that it can function as both a conventional source of electricity and as backup storage (pumped hydroelectric storage) for providing energy in times of high demand on the grid [1]. This study examines the impact of hydropower on system electricity price and price volatility in the region served by the New England Independent System Operator (ISONE) from 2014 -2020 [2]. We perform a robust holistic analysis of the mean and quantile effects, as well as the marginal contributing effects of hydropower in the presence of solar and wind resources. First, the price data is adjusted for deterministic temporal trends, correcting for seasonal, weekend, and diurnal effects that may obscure actual representative trends in the data. Using multiple linear regression and quantile regression, we observe that hydropower contributes to a reduction in the system electricity price and price volatility. While hydropower has a weak impact on decreasing price and volatility at the mean, it has greater impact at extreme quantiles (> 70th percentile). At these higher percentiles, we find that hydropower provides a stabilizing effect on price volatility in the presence of volatile resources such as wind. We con-1

show abstract

Section: Discussionsupporting

confidence: 92%

Section: Discussionsupporting

confidence: 89%

Section: Introductionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

See 2 more Smart Citations

A Robust Statistical Analysis of the Role of Hydropower on the System Electricity Price and Price Volatility

Owolabi¹,

Lawson²,

Sengupta³

et al. 2022

Preprint

View full text Add to dashboard Cite

show abstract

“…Unlike coal and natural gas, it is not impacted by fossil fuel market fluctuations [9]. While there are seasonal variations due to the availability of water, large reservoirs can mitigate this risk [21]. Hydropower provides more stable and predictable generation when compared to VREs.…”

Section: Introductionmentioning

confidence: 99%

A robust statistical analysis of the role of hydropower on the system electricity price and price volatility

Owolabi¹,

Lawson²,

Sengupta³

et al. 2022

Environ. Res. Commun.

View full text Add to dashboard Cite

Hydroelectric power (hydropower) is unique in that it can function as both a conventional source of electricity and as backup storage (pumped hydroelectric storage and large reservoir storage) for providing energy in times of high demand on the grid (S. Rehman, L M Al-Hadhrami, and M M Alam), (2015 Renewable and Sustainable Energy Reviews, 44, 586–98). This study examines the impact of hydropower on system electricity price and price volatility in the region served by the New England Independent System Operator (ISONE) from 2014-2020 (ISONE, ISO New England Web Services API v1.1.” https://webservices.iso-ne.com/docs/v1.1/, 2021. Accessed: 2021-01-10). We perform a robust holistic analysis of the mean and quantile effects, as well as the marginal contributing effects of hydropower in the presence of solar and wind resources. First, the price data is adjusted for deterministic temporal trends, correcting for seasonal, weekend, and diurnal effects that may obscure actual representative trends in the data. Using multiple linear regression and quantile regression, we observe that hydropower contributes to a reduction in the system electricity price and price volatility. While hydropower has a weak impact on decreasing price and volatility at the mean, it has greater impact at extreme quantiles (>70th percentile). At these higher percentiles, we find that hydropower provides a stabilizing effect on price volatility in the presence of volatile resources such as wind. We conclude with a discussion of the observed relationship between hydropower and system electricity price and volatility.

show abstract

Preprocessing and postprocessing strategies comparisons: case study of forecasting the carbon price in China

Niu²

2022

Soft Comput

View full text Add to dashboard Cite

Impact of wind-hydro dynamics on electricity price: A seasonal spatial econometric analysis

Cited by 21 publications

References 50 publications

A Robust Statistical Analysis of the Role of Hydropower on the System Electricity Price and Price Volatility

A Robust Statistical Analysis of the Role of Hydropower on the System Electricity Price and Price Volatility

A robust statistical analysis of the role of hydropower on the system electricity price and price volatility

Preprocessing and postprocessing strategies comparisons: case study of forecasting the carbon price in China

Contact Info

Product

Resources

About