Universität zu Köln

Koolen, Derck, Huisman, Ronald ORCID: 0000-0002-3885-7742 and Ketter, Wolfgang (2022). Decision strategies in sequential power markets with renewable energy. Energy Policy, 167. OXFORD: ELSEVIER SCI LTD. ISSN 1873-6777

Full text not available from this repository.

Abstract

With direct electrification at the core of global decarbonization efforts, it is key for policy makers to adequately evaluate market dynamics in renewable power systems. The ongoing integration of renewable energy sources fundamentally changes these dynamics, with variable production profiles, lower marginal production costs and increased price volatility. This motivates us to study how an increasing supply from renewable energy sources impacts decision making of intermittent and non-intermittent producers in sequential forward and spot markets. We do this by examining prices and volumes observed in an experimental trading environment that allows us to vary the market share of intermittent renewable energy production with a high degree of control. The results show that non-intermittent power producers, who can flexibly adjust volumes in the short-term, can retain their profits by moving focus from forward to spot markets. We find empirical support for our experimental results by validating data from German short-term power markets in 2021 and create awareness on the convenience yield for flexibility in power systems with a high market share of intermittent renewable energy sources. The study thereby guides policy makers to align supporting the uptake of intermittent renewable energy production with taking away hurdles faced by low-carbon flex technologies.

Item Type:	Journal Article
Creators:	Creators Email ORCID ORCID Put Code Koolen, Derck UNSPECIFIED UNSPECIFIED UNSPECIFIED Huisman, Ronald UNSPECIFIED orcid.org/0000-0002-3885-7742 UNSPECIFIED Ketter, Wolfgang UNSPECIFIED UNSPECIFIED UNSPECIFIED
URN:	urn:nbn:de:hbz:38-683378
DOI:	10.1016/j.enpol.2022.113025
Journal or Publication Title:	Energy Policy
Volume:	167
Date:	2022
Publisher:	ELSEVIER SCI LTD
Place of Publication:	OXFORD
ISSN:	1873-6777
Language:	English
Faculty:	Unspecified
Divisions:	Unspecified
Subjects:	no entry
Uncontrolled Keywords:	Keywords Language ELECTRICITY PRICES; FUTURES PRICES; FEASIBILITY; COMPETITION; INEFFICIENCIES; GENERATION; CONTRACTS; SYSTEMS; STORAGE; MODEL Multiple languages Economics; Energy & Fuels; Environmental Sciences; Environmental Studies Multiple languages
URI:	http://kups.ub.uni-koeln.de/id/eprint/68337