The merit order effect of wind and river type hydroelectricity generation on Turkish electricity prices

Acar, Berkan; Selcuk, Orhun; Dastan, Seyit Ali

doi:10.1016/j.enpol.2019.07.006

Cited by 19 publications

(4 citation statements)

References 31 publications

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“…It is important to note that this does not mean that the operating cost of hydropower is lower than the operating cost of wind and solar power plants. Hydropower is seasonal and the high availability of hydropower resources (especially run-of-river hydropower) in the winter and spring makes it a net contributor, alongside solar and wind, to drive down electricity prices [49]. This is consistent with studies on the average (mean effects) relationship between hydropower and price [21,25].…”

Section: Discussionsupporting

confidence: 81%

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.

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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.

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Section: Discussionsupporting

confidence: 81%

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.

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show abstract

“…The mechanics of VRE value decline are complex, producing varying results across regions and time periods. This is evidenced by the variety of results found in empirical studies from Europe, [13][14][15][16][17][18][19][20][21][22][23][24][25] Australia, 26 and the United States. [27][28][29][30][31] These studies mostly focus on a concept related to VRE value decline, the ''merit order effect,'' which quantifies the deflation of overall average wholesale power prices due to VRE output.…”

Section: Introductionmentioning

confidence: 99%

Solar and wind grid system value in the United States: The effect of transmission congestion, generation profiles, and curtailment

Millstein

Wiser

Mills

et al. 2021

Joule

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Increased wind and solar energy generation is needed to meet decarbonization goals. However, increased electricity supply during sunny or windy hours drives down electricity prices, and thus wind and solar value, potentially slowing wind and solar deployment. Here, we measure value decline over time based on potential energy and capacity revenue at wind and solar plants across the United States. We assess the causes of value decline, comparing generation timing, transmission congestion, and curtailment, and discuss strategies for its mitigation.

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“…Of these, hydropower is heavily discussed, owing to its present scale of deployment; e.g. in Sweden, Germany, Turkey, and the Pacific Northwest [48,81,82]. These studies find hydro to assist in the integration of wind, though often as only a partial mitigation in its current scale.…”

Section: Hydro/storagementioning

confidence: 99%

British Imbalance Market Paradox: Variable Renewable Energy Penetration in Energy Markets

Atherton

Hofmeister

Mosbach

et al. 2023

Preprint

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The merit order effect of wind and river type hydroelectricity generation on Turkish electricity prices

Cited by 19 publications

References 31 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

Solar and wind grid system value in the United States: The effect of transmission congestion, generation profiles, and curtailment

British Imbalance Market Paradox: Variable Renewable Energy Penetration in Energy Markets

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