The impact of variable renewables on price dynamics within wholesale electricity markets

IF 3.8 3区经济学 Q3 ENERGY & FUELS

Utilities Policy Pub Date : 2025-03-27 DOI:10.1016/j.jup.2025.101928

Selahattin Murat Sirin , Amro M. Elshurafa , Nurullah Cakmak

引用次数: 0

Abstract

The increasing integration of variable renewable energy sources (VREs) introduces new complexities into the electricity markets. This paper investigates the effects of VREs on price dynamics by utilizing unplanned wind power plant outages as exogenous shocks. Using data from the Turkish electricity market from 2019 to 2023, we examine the short- and long-term impacts of VREs on price dynamics within wholesale electricity markets. Our findings reveal that unplanned outages significantly affect short-term market dynamics, while long-term effects remain limited. The results emphasize the necessity for enhanced grid flexibility, demand response strategies, and energy storage solutions to accommodate the growing share of VREs.

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来源期刊

Utilities Policy ENERGY & FUELS-ENVIRONMENTAL SCIENCES

CiteScore

6.80

自引率

10.00%

发文量

审稿时长

66 days

期刊介绍： Utilities Policy is deliberately international, interdisciplinary, and intersectoral. Articles address utility trends and issues in both developed and developing economies. Authors and reviewers come from various disciplines, including economics, political science, sociology, law, finance, accounting, management, and engineering. Areas of focus include the utility and network industries providing essential electricity, natural gas, water and wastewater, solid waste, communications, broadband, postal, and public transportation services. Utilities Policy invites submissions that apply various quantitative and qualitative methods. Contributions are welcome from both established and emerging scholars as well as accomplished practitioners. Interdisciplinary, comparative, and applied works are encouraged. Submissions to the journal should have a clear focus on governance, performance, and/or analysis of public utilities with an aim toward informing the policymaking process and providing recommendations as appropriate. Relevant topics and issues include but are not limited to industry structures and ownership, market design and dynamics, economic development, resource planning, system modeling, accounting and finance, infrastructure investment, supply and demand efficiency, strategic management and productivity, network operations and integration, supply chains, adaptation and flexibility, service-quality standards, benchmarking and metrics, benefit-cost analysis, behavior and incentives, pricing and demand response, economic and environmental regulation, regulatory performance and impact, restructuring and deregulation, and policy institutions.