Frequency stability requires equalizing supply and demand for electricity at short time scales. Such electricity balancing is often understood as a sequential process in which random shocks, such as weather events, cause imbalances that system operators close by activating balancing reserves. By...

In European intraday electricity markets, a systematic zigzag pattern can be observed, characterized by alternating maxima and minima at the shift of hourly products. This price formation contradicts the fundamental understanding, that prices to are a monotonously increasing function of residual...

In European intraday electricity markets, a systematic zigzag pattern can be observed, characterized by alternating maxima and minima at the shift of hourly products. This price formation contradicts the fundamental understanding, that prices to are a monotonously increasing function of residual...

The merit-order approach in the electricity market, which is in widespread use across the EU27 and the UK, has proven to be somewhat economically problematic in the context of the Russo-Ukrainian War. The massively increased gas prices since summer 2022—in the context of Russian supply cuts to...

Electric and natural gas are the two major sources of energy for residents of Washington State. Several states have adopted a policy whereby utility companies decide on the choice of mixes of resources by incorporating cost effectiveness, conservation and externalities. Externalities could...

This study employs synthetic control methods to estimate the effect of the Iberian exception mechanism on wholesale electricity prices and consumer inflation, for both Spain and Portugal. We find that the intervention led to an average reduction of approximately 40% in the spot price of...

Congestion management schemes have taken a prominent place in current electricity market design discussions. In this paper, the implications of establishing zonal pricing in Europe are analyzed with regard to potential zonal delimitations and associated effects on total system costs. Thereby, a...

Ziel dieses Papers ist es, im Hinblick auf die in Deutschland geplante Einführung eines Qualitätsanreizsystems bei Elektrizitätsnetzbetreibern, eine geeignete Methode für die hierfür notwendige Bewertung der Netzzuverlässigkeit gleichbedeutend mit den wohlfahrtswirksamen Stromausfallkosten...

The seasonal demand for natural gas requires supply flexibility. This "swing" is now largely provided in northwestern Europe by indigenous production. Declining reserves will increase the dependency on imports from far-off sources, which are less flexible. Hence, flexibility must be provided by...

In this article we analyze the remuneration mechanism for the reduction of energy losses, through a dynamic principal-agent model in continuous time. The agent represents the power distribution company, which makes investments, or in other words, makes an effort to reduce energy losses. The...