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The effect of wind energy production on cross-border electricity pricing: The case of western Denmark in the Nord Pool market

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  • Unger, Elizabeth A.
  • Ulfarsson, Gudmundur F.
  • Gardarsson, Sigurdur M.
  • Matthiasson, Thorolfur

Abstract

The aim of this analysis was to estimate the effect of planned cross-border energy flow and different levels of predicted wind energy share with respect to the three pricing outcomes (higher price, lower price, or equal prices) that can occur between a pair of trading partners in the Nordic day-ahead spot market. The analysis covers a four-year period (2012–2015). Three multinomial logit models were designed, one for trade with each of western Denmark’s (DK1) Nord Pool day-ahead spot market trading partners: eastern Denmark (DK2); southern Norway (NO2); and Stockholm, Sweden (SE3).

Suggested Citation

  • 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.
    • Handle: RePEc:eee:ecanpo:v:58:y:2018:i:c:p:121-130
    DOI: 10.1016/j.eap.2018.01.006
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