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Getting prices right in structural electricity market models

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  • Ward, K.R.
  • Green, R.
  • Staffell, I.

Abstract

Electricity market models are widely employed to study the role, impacts and economic viability of new technologies. Sources of arbitrage, such as storage and transmission, are increasingly seen as essential for integrating higher shares of variable renewables. Understanding their operation and business case requires models which accurately represent time-series of wholesale electricity prices.

Suggested Citation

  • Ward, K.R. & Green, R. & Staffell, I., 2019. "Getting prices right in structural electricity market models," Energy Policy, Elsevier, vol. 129(C), pages 1190-1206.
    • Handle: RePEc:eee:enepol:v:129:y:2019:i:c:p:1190-1206
    DOI: 10.1016/j.enpol.2019.01.077
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    Cited by:

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    6. Mahler, Valentin & Girard, Robin & Kariniotakis, Georges, 2022. "Data-driven structural modeling of electricity price dynamics," Energy Economics, Elsevier, vol. 107(C).
    7. Annika Gillich & Kai Hufendiek, 2022. "Asset Profitability in the Electricity Sector: An Iterative Approach in a Linear Optimization Model," Energies, MDPI, vol. 15(12), pages 1-31, June.
    8. Erik Heilmann & Janosch Henze & Heike Wetzel, 2021. "Machine learning in energy forecasts with an application to high frequency electricity consumption data," MAGKS Papers on Economics 202135, Philipps-Universität Marburg, Faculty of Business Administration and Economics, Department of Economics (Volkswirtschaftliche Abteilung).
    9. Heilmann, Erik, 2023. "The impact of transparency policies on local flexibility markets in electric distribution networks," Utilities Policy, Elsevier, vol. 83(C).
    10. Tom Brown & Fabian Neumann & Iegor Riepin, 2024. "Price formation without fuel costs: the interaction of demand elasticity with storage bidding," Papers 2407.21409, arXiv.org, revised Feb 2025.
    11. Williams, Olayinka & Green, Richard, 2022. "Electricity storage and market power," Energy Policy, Elsevier, vol. 164(C).
    12. Mwampashi, Muthe Mathias & Nikitopoulos, Christina Sklibosios & Konstandatos, Otto & Rai, Alan, 2021. "Wind generation and the dynamics of electricity prices in Australia," Energy Economics, Elsevier, vol. 103(C).
    13. Cieplinski, A. & D'Alessandro, S. & Marghella, F., 2021. "Assessing the renewable energy policy paradox: A scenario analysis for the Italian electricity market," Renewable and Sustainable Energy Reviews, Elsevier, vol. 142(C).
    14. Erik Heilmann, 2021. "The impact of transparency policies on local flexibility markets in electrical distribution networks: A case study with artificial neural network forecasts," MAGKS Papers on Economics 202141, Philipps-Universität Marburg, Faculty of Business Administration and Economics, Department of Economics (Volkswirtschaftliche Abteilung).
    15. Biancardi, Andrea & Mendes, Carla & Staffell, Iain, 2024. "Battery electricity storage as both a complement and substitute for cross-border interconnection," Energy Policy, Elsevier, vol. 189(C).
    16. Li, Yanxue & Zhang, Xiaoyi & Gao, Weijun & Ruan, Yingjun, 2020. "Capacity credit and market value analysis of photovoltaic integration considering grid flexibility requirements," Renewable Energy, Elsevier, vol. 159(C), pages 908-919.
    17. Valentin Mahler & Robin Girard & Georges Kariniotakis, 2021. "Data-driven Structural Modeling of Electricity Price Dynamics," Working Papers hal-03445396, HAL.
    18. Schleifer, Anna H. & Murphy, Caitlin A. & Cole, Wesley J. & Denholm, Paul, 2022. "Exploring the design space of PV-plus-battery system configurations under evolving grid conditions," Applied Energy, Elsevier, vol. 308(C).
    19. Heike Scheben & Nikolai Klempp & Kai Hufendiek, 2020. "Impact of Long-Term Water Inflow Uncertainty on Wholesale Electricity Prices in Markets with High Shares of Renewable Energies and Storages," Energies, MDPI, vol. 13(9), pages 1-21, May.
    20. Gorman, Nicholas & MacGill, Iain & Bruce, Anna, 2024. "Re-dispatch simplification analysis: Confirmation holism and assessing the impact of simplifications on energy system model performance," Applied Energy, Elsevier, vol. 365(C).

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