RES effects in Italian wholesale electricity market

Abstract

Abstract-We empirically analyze the relationship between wholesale electricity day-ahead and regulation prices in the presence of high share of RES generation. Our results only partly confirm those obtained by Skytte (1999) for the Oslo area. In the Italian case, regulating power prices follow spot prices and, in some cases, they are two or three times larger than the latter ones. We generally observe that the amount of regulation does not affect regulating power prices, even if they actually behave differently to up-and down-regulation. In addition, we find empirical evidence of very high premia for readiness with different behaviors according to Italian zones.

Revisiting long-run relations in power markets with high RES penetration

“…The markets considered are governed by different factors and regulatory provisions. For example, in German EPEX negative pricing is admitted 8 , in Spain there is a high share of wind penetration, whereas in Italy the high solar penetration, in connection with high hydro shares and no nuclear power, produces important implications in terms of balancing markets, as highlighted by Gianfreda and Parisio (2015). In addition, we consider cases of large interconnection capacity (France) and cases of limited transmission capacity 9 .…”