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

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  • Gianfreda, Angelica
  • Parisio, Lucia
  • Pelagatti, Matteo

Abstract

Electricity generation from renewable energy resources (RES) has become increasingly significant to reach EU and emissions reduction targets. At the same time, one of the main EU policy goals has been the creation of a common internal energy market for Europe. In this paper, we focus on these two issues previously studied separately, considering their possible interactions. We first analyze the long-run relationship between day-ahead electricity prices and fuel prices (natural gas and coal) looking at two samples of years characterized by low and high RES penetration, then we explore the integration of EU markets.

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  • Gianfreda, Angelica & Parisio, Lucia & Pelagatti, Matteo, 2016. "Revisiting long-run relations in power markets with high RES penetration," Energy Policy, Elsevier, vol. 94(C), pages 432-445.
    • Handle: RePEc:eee:enepol:v:94:y:2016:i:c:p:432-445
    DOI: 10.1016/j.enpol.2016.02.006
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    13. Sapio, Alessandro & Spagnolo, Nicola, 2020. "The effect of a new power cable on energy prices volatility spillovers," Energy Policy, Elsevier, vol. 144(C).
    14. Sapio, Alessandro, 2019. "Greener, more integrated, and less volatile? A quantile regression analysis of Italian wholesale electricity prices," Energy Policy, Elsevier, vol. 126(C), pages 452-469.
    15. Angelica Gianfreda & Francesco Ravazzolo & Luca Rossini, 2020. "Large Time-Varying Volatility Models for Electricity Prices," Working Papers No 05/2020, Centre for Applied Macro- and Petroleum economics (CAMP), BI Norwegian Business School.
    16. Angelica, Gianfreda & Lucia, Parisio & Matteo, Pelagatti, 2017. "The RES-induced Switching Effect Across Fossil Fuels: An Analysis of the Italian Day-Ahead and Balancing Prices and Their Connected Costs," Working Papers 360, University of Milano-Bicocca, Department of Economics, revised 03 Feb 2017.
    17. Almendra Awerkin & Tiziano Vargiolu, 2021. "Optimal installation of renewable electricity sources: the case of Italy," Decisions in Economics and Finance, Springer;Associazione per la Matematica, vol. 44(2), pages 1179-1209, December.
    18. Gugler, Klaus & Haxhimusa, Adhurim, 2016. "Cross-Border Technology Differences and Trade Barriers: Evidence from German and French Electricity Markets," Department of Economics Working Paper Series 237, WU Vienna University of Economics and Business.
    19. Unger, Elizabeth A. & Ulfarsson, Gudmundur F. & Gardarsson, Sigurdur M. & Matthiasson, Thorolfur, 2018. "The effect of wind energy production on cross-border electricity pricing: The case of western Denmark in the Nord Pool market," Economic Analysis and Policy, Elsevier, vol. 58(C), pages 121-130.
    20. Lucia Parisio & Matteo Pelagatti, 2019. "Market coupling between electricity markets: theory and empirical evidence for the Italian–Slovenian interconnection," Economia Politica: Journal of Analytical and Institutional Economics, Springer;Fondazione Edison, vol. 36(2), pages 527-548, July.
    21. Aris Dimeas & George Kiokes, 2022. "PV Penetration under Market Environment and with System Constraints," Energies, MDPI, vol. 15(22), pages 1-11, November.
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