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Impact of solar production on Czech electricity grid system imbalance

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  • Janda, Karel
  • Tuma, Ladislav

Abstract

We consider the electricity grid imbalance settlement mechanism in the Czech Republic. We focus on the influence of photovoltaic electricity on the behavior of the system imbalance in this mechanism. Out of the family of GARCH models, we use TARCH model, which allows different behavior if the residual are negative, to model the asymmetric effect of positive or negative electricity system imbalance. Our results show that the introduction of photovoltaics has substantial effect on the Czech electricity system imbalance, leading to positive system imbalance. The influence of photovoltaics on the volatility of the Czech electricity system imbalance is statistically significant, but it is not substantial in economic terms.

Suggested Citation

  • Janda, Karel & Tuma, Ladislav, 2016. "Impact of solar production on Czech electricity grid system imbalance," MPRA Paper 74883, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:74883
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    File URL: https://mpra.ub.uni-muenchen.de/74883/1/MPRA_paper_74883.pdf
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    References listed on IDEAS

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    1. Efimova, Olga & Serletis, Apostolos, 2014. "Energy markets volatility modelling using GARCH," Energy Economics, Elsevier, vol. 43(C), pages 264-273.
    2. Vandezande, Leen & Meeus, Leonardo & Belmans, Ronnie & Saguan, Marcelo & Glachant, Jean-Michel, 2010. "Well-functioning balancing markets: A prerequisite for wind power integration," Energy Policy, Elsevier, vol. 38(7), pages 3146-3154, July.
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    Cited by:

    1. Luňáčková, Petra & Průša, Jan & Janda, Karel, 2017. "The merit order effect of Czech photovoltaic plants," Energy Policy, Elsevier, vol. 106(C), pages 138-147.

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    Keywords

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    JEL classification:

    • Q4 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy
    • Q41 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Demand and Supply; Prices
    • Q42 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Alternative Energy Sources
    • Q47 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy Forecasting

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