In this paper we study the impact of errors in wind and solar power forecasts on intraday electricity prices. We develop a novel econometric model which is based on day-ahead wholesale auction curves data and errors in wind and solar power forecasts. The model shifts day-ahead supply curves to calculate intraday prices. We apply our…
2021
Towards Electricity Markets’ Integration and Investment in Transmission Capacity: East African Community Power Markets
This research examines the impact of transmission expansion on a future East Africa’s electricity market, to enable the five examined countries (Kenya, Uganda, Tanzania, Rwanda, and Burundi) to adequately couple. As a pioneering move, we introduce nodal pricing and investigate the economic welfare arising from the planned transmission upgrade. This simulation is then compared to…
Transmission Network Investment in a Time of Transition
Electric Vehicles Rollout—Two Case Studies
We present and discuss evidence on electric-vehicle rollout in The Netherlands and Norway, two forerunners in this area. We demonstrate that the uptake of electric vehicles is essentially driven by financial and other benefits offered to their owners, and that a partial electrification of the vehicle fleet may be achieved even with limited public charging…
Empower the Consumer! Energy-related Financial Literacy and its Implications for Economic Decision Making
Untapped energy savings potential in the residential sector might lead to substantial welfare losses. While several studies have focused on the role of behavioral biases in explaining the lack of adoption of energy-efficient durable goods, little is known about the role of limited energy-specific knowledge and financial literacy. In this paper, we propose an integrated…
Electricity Markets in the Resource-Rich Countries of the MENA: Adapting for the Transition Era
The Middle East and North Africa’s (MENA) resource-rich economies are pursuing two parallel strategies in their electricity sectors: (i) increasing and integrating renewables into their power generation mix to mitigate the impact of rising domestic oil and gas demand on their economies and boost hydrocarbon export capacities; and (ii) undertaking power sector reforms to attract…
Inland Hard Coal Transportation Costs in the European Union—A Model Based Approach
Although some EU countries have already ceased coal-fired electricity generation, coal will still be a relevant topic within the European electricity mix in the medium term. A hard coal power plant competes in the merit order mainly with other hard coal power plants and also with gas power plants. One of the main cost drivers…