Many countries have introduced policies to stimulate the production of electricity in a sustainable or renewable way. Theoretical and simulation studies provide evidence that the introduction of renewable energy promotion policies lead to lower electricity prices as sustainable energy supply as...

This paper provides insight in the time-varying relation between electricity futures prices and fundamentals in the form of prices of contracts for fossil fuels. As supply curves are not constant and different producers have different marginal costs of production, we argue that the relation...

The European Union Trading Scheme (EU ETS) gives emission allowances a market price and are a marginal cost factor for those power plants that run on polluting fuels. Power plants have these costs in mind when they determine the selling price of their output. Being sold on a market place, it...

This paper focuses on the characteristics of hourly electricity prices in day-ahead markets. In these markets, quotes for day-ahead delivery of electricity are submitted simultaneously for all hours in the next day. The same information set is used for quoting all hours of the day. The dynamics...