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Reliability Options in Renewables-Dominated Electricity Markets
McRae, Shaun D.; Wolak, Frank A. - National Bureau of Economic Research - 2024
Recent energy shortfalls in renewables-dominated electricity markets call for a mechanism to ensure demand is met under all system conditions. We demonstrate severe shortcomings of an increasingly popular mechanism--reliability options--caused by its interaction with fixed-price forward...
Persistent link: https://www.econbiz.de/10014576645
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Customer Risk from Real-Time Retail Electricity Pricing : Bill Volatility and Hedgability
Borenstein, Severin - 2006
very simple hedging strategies can eliminate more than 80% of the bill volatility that would otherwise occur. Far from … significantly enhance their effect on reducing bill volatility …
Persistent link: https://www.econbiz.de/10012466141
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Pricing and Hedging Derivative Securities in Incomplete Markets : An E-Aritrage Model
Bertsimas, Dimitris - 1997
Given a European derivative security with an arbitrary payoff function and a corresponding set of" underlying … securities on which the derivative security is based, we solve the dynamic replication problem: find a" self-financing dynamic …-dependent options and options on assets with stochastic volatility and jumps. " …
Persistent link: https://www.econbiz.de/10012472561
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Electricity Price Distributions in Future Renewables-Dominant Power Grids and Policy Implications
Mallapragada, Dharik S.; Junge, Cristian; Wang, Cathy Xun; … - National Bureau of Economic Research - 2021
-electricity use (and for energy storage) weakens but does not undo these results. Financial instruments to hedge price volatility will … demand via demand response contracts, the risks of price volatility faced by retail customers can be mitigated without …
Persistent link: https://www.econbiz.de/10012696419
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Multi-Product Firms in Electricity Markets : Implications for Climate Policy
Buchsbaum, Jesse F. - 2020
In electricity markets, generators are rewarded both for providing energy and for enabling grid reliability. The two functions are compensated in separate markets: energy markets and ancillary services markets. We provide evidence of changes in the fuel mix in the energy market that is driven by...
Persistent link: https://www.econbiz.de/10012482246
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The Redistributional Impact of Non-linear Electricity Pricing
Borenstein, Severin - 2010
Utility regulators frequently focus as much or more on the distributional impact of electric rate structures as on their efficiency. The goal of protecting low-income consumers has become more central with recent increases in wholesale power costs and anticipation of significant costs of...
Persistent link: https://www.econbiz.de/10012462829
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Wealth Transfers from Implementing Real-Time Retail Electricity Pricing
Borenstein, Severin - 2005
under the more extreme price volatility scenario that I examine, 90% of customers would see changes of between a 9% bill …
Persistent link: https://www.econbiz.de/10012467083
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Trading Inefficiencies in California's Electricity Markets
Borenstein, Severin - 2001
We study price convergence between the two major markets for wholesale electricity in California from their deregulation in April 1998 through November 2000, nearly the end of trading in one market. We would expect profit-maximizing traders to have eliminated persistent price differences between...
Persistent link: https://www.econbiz.de/10012470096
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The Impact of Market Rules and Market Structure on the Price Determination Process in the England and Wales Electricity Market
Wolak, Frank A. - 2001
This paper argues that the market rules governing the operation of the England and Wales electricity market in combination with the structure of this market presents the two major generators National Power and PowerGen with opportunities to earn revenues substantially in excess of their costs of...
Persistent link: https://www.econbiz.de/10012470476
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A Quantitative Analysis of Pricing Behavior in California's Wholesale Electricity Market During Summer 2000
Joskow, Paul - 2001
We simulate competitive benchmark wholesale prices for electricity in California during the summer of 2000, taking account of changes in natural gas prices, electricity demand, and imports of electricity from other states during this time period. We also examine the impact of changes in the...
Persistent link: https://www.econbiz.de/10012470569