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Influence of the Industry’s Output on Electricity Prices: Comparison of the Nord Pool and HUPX Markets

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  • Jerzy Rembeza

    (Faculty of Economic Science, Koszalin University of Technology, Kwiatkowskiego 6e, 75-343 Koszalin, Poland)

  • Grzegorz Przekota

    (Faculty of Economic Science, Koszalin University of Technology, Kwiatkowskiego 6e, 75-343 Koszalin, Poland)

Abstract

Electricity markets are characterised by high sensitivity to variations in supply and demand conditions. However, they also exhibit a number of specific characteristics, including large daily, weekly, and seasonal price fluctuations. The aim of this article is to assess the impact of fluctuations in the industry’s output on wholesale electricity prices. Results were compared for the Nord Pool markets, with a high share of renewable energy supply, and the HUPX markets, where fossil fuel and/or nuclear energy supply dominates. The results obtained generally indicate the positive impact of changes in the industry’s output on wholesale electricity prices. This impact was stronger in the HUPX markets and for periods in daily and weekly cycles with higher energy demands. The results indicate that the sensitivity of electricity prices to fluctuations in the industry’s output is lower in markets with a higher share of renewable energy, especially for periods with higher energy demands.

Suggested Citation

  • Jerzy Rembeza & Grzegorz Przekota, 2022. "Influence of the Industry’s Output on Electricity Prices: Comparison of the Nord Pool and HUPX Markets," Energies, MDPI, vol. 15(16), pages 1-15, August.
    • Handle: RePEc:gam:jeners:v:15:y:2022:i:16:p:6044-:d:893342
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