Price Risk Exposure of Small Participants in Liberalized Multi-National Power Markets: A Case Study on the Belize–Mexico Interconnection
Khadija Sherece Usher,
Benjamin Craig McLellan
Abstract:This study examined the price risk of the Belize–Mexico interconnection using ARMA-ARCH models to assess electricity pricing volatility and autoregression to determine the influence of conditional volatilities and import consumption. The findings revealed that the volatility of both markets, especially spot price, showed rare high-impact shocks and prolonged periods of volatile clusters. Volatile pricing tendencies, and forward pricing to a lesser extent, had positive effects on premiums. Premiums were largely… Show more
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