Browsing by Subject "http://www.yso.fi/onto/yso/p16837"
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(2024)In this master's thesis, I analyze the presence and implications of market power in the Nordic market for electricity. I estimate a structural oligopoly model using aggregate bidding data from the Nordic spot market, Elspot, as well as reduced-form models using aggregate bidding data and data on reservoir water levels of hydropower plants. These models shed light on noncompetitive behaviour in the wholesale market for electricity, and suggest that dominant hydropower firms withhold production when price elasticity of demand is relatively high. Data on the reservoir water level of hydropower plants can be used to estimate how market power and the price elasticity of demand influence production decisions. I collect this data from the NO5 pricing zone in Western Norway for the years 2020-2023, when the European energy market was in crisis. I propose an algorithm to estimate reservoir water levels that is based on publicly available satellite imagery, that I use to collect data from over 300 reservoirs. Using this data, I analyze the production decisions of hydropower producers and how they are influenced by their size, market power and elasticity of demand. I also estimate a structural model, in which market power is analyzed using aggregate bidding data as well as other market data. To estimate this model, I replicate the price-clearing algorithm of the Nordic day-ahead electricity market, the Elspot. I also collect data on wind power production and demand forecasts on the ENTSO-E transparency platform. I find evidence of market power for the sample years of 2020-2023. The results also suggest that market power did not have the same kind of influence in the years 2022 and 2023 as it did in 2020 and 2021, or that the structural model was unable to identify market power in these years.
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(2021)Political decision making and legislation are favoring the use of renewable energy sources in electricity markets in many European countries. One of these countries is Germany, which electricity market is examined in this thesis. Therefore, renewable energy generation has increased significantly during the past decades. These environmentally friendly energy sources cause challenges to electricity markets. Compared to fossil fuels renewable energy is intermittent and not easily adjustable to electricity demand. Thus, understanding how renewables impact electricity prices is essential. The objective of this thesis is to examine the impacts of wind and solar energy production on day-ahead electricity prices in Germany. The data used in this thesis is from German markets and covers the period from January 2015 to December 2019. All the data is from the European Network of Transmission System Operators for Electricity, which is an online data transparency platform for European electricity system data. The identification method used in this thesis is fixed effects model, which is regression model that is suitable for panel data set. Five independent variables are included in the model, and wind and solar power generation are examined separately in this thesis. The results of this thesis suggest that increased amounts of wind power feed-in decreases electricity prices. These results are in line with the previous studies. However, the magnitude on wind production price impact was more modest compared to previous studies. Results of solar power generation were more surprising, as it seemed to have slightly positive impact on day-ahead electricity prices. However, it is worth noticing that estimates were not statistically significant at 0.1 significance level, and according to robustness checks results varied. Robustness checks with other variables support obtained results. Comparison between results of wind and solar power price impacts showed that wind power generation has a greater impact on day-ahead electricity prices. This observation is in line with most of the previous literature.
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