Sensitivity of electricity prices in energy-only markets with large amounts of zero marginal cost generation

Niina Helistö, Juha Kiviluoma, Hannele Holttinen

Research output: Chapter in Book/Report/Conference proceedingConference article in proceedingsScientificpeer-review

3 Citations (Scopus)

Abstract

This paper explores the sensitivity of electricity prices in energy-only markets with large amounts of wind and solar power. After electricity prices have fallen in many energy-only markets in recent years, the topic has been discussed in many studies with different approaches. The approach in this paper is to perform extensive electricity market simulations. The study is based on the North European power system, and it was carried out using a generation planning model to create reasonable capacity mixes for future, and a unit commitment and economic dispatch model to simulate electricity prices. The results show that the amount of base load generation capacity and overcapacity has a very high impact on electricity prices. The share of wind and solar power and the price of CO2 also have a clearly detectable, but less significant, impact.
Original languageEnglish
Title of host publication2017 14th International Conference on the European Energy Market, EEM 2017
PublisherInstitute of Electrical and Electronic Engineers IEEE
ISBN (Electronic)978-1-5090-5499-2
ISBN (Print)978-1-5090-5500-5
DOIs
Publication statusPublished - 14 Jul 2017
MoE publication typeA4 Article in a conference publication
Event14th International Conference on the European Energy Market, EEM 2017 - Dresden, Germany
Duration: 6 Jun 20179 Jun 2017

Conference

Conference14th International Conference on the European Energy Market, EEM 2017
Abbreviated titleEEM 2017
CountryGermany
CityDresden
Period6/06/179/06/17

Fingerprint

Electricity
Solar energy
Wind power
Costs
Planning
Economics

Keywords

  • electricity prices
  • power system modeling
  • solar power
  • unit commitment
  • wind power
  • Unit commitment

Cite this

Helistö, N., Kiviluoma, J., & Holttinen, H. (2017). Sensitivity of electricity prices in energy-only markets with large amounts of zero marginal cost generation. In 2017 14th International Conference on the European Energy Market, EEM 2017 [7981893] Institute of Electrical and Electronic Engineers IEEE. https://doi.org/10.1109/EEM.2017.7981893
Helistö, Niina ; Kiviluoma, Juha ; Holttinen, Hannele. / Sensitivity of electricity prices in energy-only markets with large amounts of zero marginal cost generation. 2017 14th International Conference on the European Energy Market, EEM 2017. Institute of Electrical and Electronic Engineers IEEE, 2017.
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Helistö, N, Kiviluoma, J & Holttinen, H 2017, Sensitivity of electricity prices in energy-only markets with large amounts of zero marginal cost generation. in 2017 14th International Conference on the European Energy Market, EEM 2017., 7981893, Institute of Electrical and Electronic Engineers IEEE, 14th International Conference on the European Energy Market, EEM 2017, Dresden, Germany, 6/06/17. https://doi.org/10.1109/EEM.2017.7981893

Sensitivity of electricity prices in energy-only markets with large amounts of zero marginal cost generation. / Helistö, Niina; Kiviluoma, Juha; Holttinen, Hannele.

2017 14th International Conference on the European Energy Market, EEM 2017. Institute of Electrical and Electronic Engineers IEEE, 2017. 7981893.

Research output: Chapter in Book/Report/Conference proceedingConference article in proceedingsScientificpeer-review

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AB - This paper explores the sensitivity of electricity prices in energy-only markets with large amounts of wind and solar power. After electricity prices have fallen in many energy-only markets in recent years, the topic has been discussed in many studies with different approaches. The approach in this paper is to perform extensive electricity market simulations. The study is based on the North European power system, and it was carried out using a generation planning model to create reasonable capacity mixes for future, and a unit commitment and economic dispatch model to simulate electricity prices. The results show that the amount of base load generation capacity and overcapacity has a very high impact on electricity prices. The share of wind and solar power and the price of CO2 also have a clearly detectable, but less significant, impact.

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Helistö N, Kiviluoma J, Holttinen H. Sensitivity of electricity prices in energy-only markets with large amounts of zero marginal cost generation. In 2017 14th International Conference on the European Energy Market, EEM 2017. Institute of Electrical and Electronic Engineers IEEE. 2017. 7981893 https://doi.org/10.1109/EEM.2017.7981893