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Effects of the COVID-19 Pandemic on the Spot Price of Colombian Electricity

Author

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  • Andrés Oviedo-Gómez

    (School of Electrical and Electronic Engineering, Universidad del Valle, 76001 Cali, Colombia)

  • Sandra Milena Londoño-Hernández

    (School of Electrical and Electronic Engineering, Universidad del Valle, 76001 Cali, Colombia)

  • Diego Fernando Manotas-Duque

    (School of Industrial Engineering, Universidad del Valle, 76001 Cali, Colombia)

Abstract

COVID-19 disease shocked global economic activity and affected the electricity markets due to lockdown and work-from-home policies. Therefore, this study proposes an empirical analysis to identify the electricity spot price response during the preventive and mandatory insulation in Colombia, where the economic contraction caused the largest decrease in the electricity demand, especially in the industrial sector. The methodology applied was quantile regression to quantify the non-linear effect on the spot price returns, and two sample periods were selected to contrast the results: 2018 and 2019. The main findings showed that regulated demand variation caused the highest variability on the spot price dynamic during the strict quarantine. However, the price could not fully capture the effects of the demand change due to the short duration of the shock and, also, the price variability in 2019 was higher than 2020 by an El Niño shock.

Suggested Citation

  • Andrés Oviedo-Gómez & Sandra Milena Londoño-Hernández & Diego Fernando Manotas-Duque, 2021. "Effects of the COVID-19 Pandemic on the Spot Price of Colombian Electricity," Energies, MDPI, vol. 14(21), pages 1-14, October.
    • Handle: RePEc:gam:jeners:v:14:y:2021:i:21:p:6989-:d:664220
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    References listed on IDEAS

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    1. Andr s Oviedo-G mez & Sandra Milena Londo o-Hern ndez & Diego Fernando Manotas-Duque, 2023. "Directional Spillover of Fossil Fuels Prices on a Hydrothermal Power Generation Market," International Journal of Energy Economics and Policy, Econjournals, vol. 13(1), pages 85-90, January.

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