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Characteristics of the prices of operating reserves and regulation services in competitive electricity markets

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  • Wang, Peng
  • Zareipour, Hamidreza
  • Rosehart, William D.

Abstract

In this paper, characteristics of the prices of reserves and regulation services in the Ontario, New York and ERCOT electricity markets are studied. More specifically, price variability, price jumps, long-range correlation, and non-linearity of the prices are analyzed using the available measures in the literature. For the Ontario electricity market, the prices of 10-min spinning, 10-min non-spinning, and 30-min operating reserves for the period May 1, 2002 to December 31, 2007 are analyzed. For the New York market, prices of the same reserves plus regulation service are studied for the period February 5, 2005 to December 31, 2008. For the ERCOT market, we analyze the prices of responsive reserve, regulation up and regulation down services, for the period January 1, 2005 to December 31, 2009. The studied characteristics of operating reserve and regulation prices are also compared with those of energy prices. The findings of this paper show that the studied reserve and regulation prices feature extreme volatility, more frequent jumps and spikes, different peak price occurrence time, and lower predictability, compared to the energy prices.

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  • Wang, Peng & Zareipour, Hamidreza & Rosehart, William D., 2011. "Characteristics of the prices of operating reserves and regulation services in competitive electricity markets," Energy Policy, Elsevier, vol. 39(6), pages 3210-3221, June.
    • Handle: RePEc:eee:enepol:v:39:y:2011:i:6:p:3210-3221
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    4. David P. Brown & Andrew Eckert & Douglas Silveira, 2023. "Strategic interaction between wholesale and ancillary service markets," Competition and Regulation in Network Industries, , vol. 24(4), pages 174-198, December.
    5. Reddy, S. Surender & Bijwe, P.R., 2015. "Real time economic dispatch considering renewable energy resources," Renewable Energy, Elsevier, vol. 83(C), pages 1215-1226.
    6. Christian Giovanelli & Seppo Sierla & Ryutaro Ichise & Valeriy Vyatkin, 2018. "Exploiting Artificial Neural Networks for the Prediction of Ancillary Energy Market Prices," Energies, MDPI, vol. 11(7), pages 1-22, July.
    7. Banshwar, Anuj & Sharma, Naveen Kumar & Sood, Yog Raj & Shrivastava, Rajnish, 2018. "An international experience of technical and economic aspects of ancillary services in deregulated power industry: Lessons for emerging BRIC electricity markets," Renewable and Sustainable Energy Reviews, Elsevier, vol. 90(C), pages 774-801.
    8. Moritz Nobis & Carlo Schmitt & Ralf Schemm & Armin Schnettler, 2020. "Pan-European CVaR-Constrained Stochastic Unit Commitment in Day-Ahead and Intraday Electricity Markets," Energies, MDPI, vol. 13(9), pages 1-35, May.

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