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

Niina Helistö; Juha Kiviluoma; Hannele Holttinen

doi:10.1109/EEM.2017.7981893

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

Niina Helistö, Juha Kiviluoma, Hannele Holttinen

DOES - Design and Operation of Energy Systems

Research output: Chapter in Book/Report/Conference proceeding › Conference article in proceedings › Scientific › peer-review

13 Citations (Scopus)

94 Downloads (Pure)

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 language	English
Title of host publication	2017 14th International Conference on the European Energy Market, EEM 2017
Publisher	IEEE Institute of Electrical and Electronic Engineers
ISBN (Electronic)	978-1-5090-5499-2
ISBN (Print)	978-1-5090-5500-5
DOIs	https://doi.org/10.1109/EEM.2017.7981893
Publication status	Published - 14 Jul 2017
MoE publication type	A4 Article in a conference publication
Event	14th International Conference on the European Energy Market, EEM 2017 - Dresden, Germany Duration: 6 Jun 2017 → 9 Jun 2017

Conference

Conference	14th International Conference on the European Energy Market, EEM 2017
Abbreviated title	EEM 2017
Country/Territory	Germany
City	Dresden
Period	6/06/17 → 9/06/17

Keywords

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

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

Access to Document

10.1109/EEM.2017.7981893

Sensitivity of electricity prices Accepted paperAccepted author manuscript, 596 KB

Cite this

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

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.",

keywords = "electricity prices, power system modeling, solar power, unit commitment, wind power, Unit commitment",

author = "Niina Helist{\"o} and Juha Kiviluoma and Hannele Holttinen",

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booktitle = "2017 14th International Conference on the European Energy Market, EEM 2017",

publisher = "IEEE Institute of Electrical and Electronic Engineers",

address = "United States",

note = "14th International Conference on the European Energy Market, EEM 2017, EEM 2017 ; Conference date: 06-06-2017 Through 09-06-2017",

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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, IEEE Institute of Electrical and Electronic Engineers, 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. IEEE Institute of Electrical and Electronic Engineers, 2017. 7981893.

Research output: Chapter in Book/Report/Conference proceeding › Conference article in proceedings › Scientific › peer-review

TY - GEN

T1 - Sensitivity of electricity prices in energy-only markets with large amounts of zero marginal cost generation

AU - Helistö, Niina

AU - Kiviluoma, Juha

AU - Holttinen, Hannele

PY - 2017/7/14

Y1 - 2017/7/14

N2 - 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.

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.

KW - electricity prices

KW - power system modeling

KW - solar power

KW - unit commitment

KW - wind power

KW - Unit commitment

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M3 - Conference article in proceedings

SN - 978-1-5090-5500-5

BT - 2017 14th International Conference on the European Energy Market, EEM 2017

PB - IEEE Institute of Electrical and Electronic Engineers

T2 - 14th International Conference on the European Energy Market, EEM 2017

Y2 - 6 June 2017 through 9 June 2017

ER -

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

Abstract

Conference

Keywords

UN SDGs

Access to Document

Other files and links

Fingerprint

EL-TRAN: Transition to a Resource Efficient and Climate Neutral Electricity System

Cite this

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

Abstract

Conference

Keywords

UN SDGs

Access to Document

Other files and links

Fingerprint

Projects

EL-TRAN: Transition to a Resource Efficient and Climate Neutral Electricity System

Cite this