Hybrid production plants harness diverse climatic sources for electricity generation, playing a crucial role in the transition to renewable energies. This study aims to forecast the profitability of a combined wind-photovoltaic energy system. Here, we develop a model that integrates predicted...

The unexpected pandemic eruption in March 2020, the European efforts to diminish the gas house emissions, prolonged drought, higher inflation and the war in Ukraine clearly have had a strong impact on the electricity price. In this paper, we analyze the electricity prices on the Romanian...

Governments in low-income countries are increasingly integrating off-grid electricity provision into national electrification strategies, creating novel, decentralized markets for electricity. This paper studies a highly decentralized product that plays an important role in energy access: pay as...

The U.S. nuclear industry has overcome a challenging period during which low wholesale market prices threatened the survival of nuclear power plants (NPPs). From 2017 to 2019, several U.S. states initiated out-of-market support schemes to bolster the financial conditions of NPPs. This paper...

European electricity markets are in the midst of unprecedented changes-caused by Russia's invasion of Ukraine and the rise of renewable sources of energy. Using high-frequency data, this paper investigates volatility spillovers across 24 countries in the European Union (EU) during the period...

This paper studies the volatility of electricity spot prices in the Nordic market (Sweden, Finland, Denmark, and Norway) under regime switching. Utilizing Markov-switching GARCH (Generalized Autoregressive Conditional Heteroskedasticity) models, we provide strong evidence of nonlinear regime...

The electricity industry is undergoing a transformative evolution driven by three overarching trends: decentralization, digitalization, and decarbonization (3Ds). To ensure access to clean, affordable, and reliable energy for all by 2030 - UN sustainable development goal 7 (SDG7) - countries...

Prepaid electricity contracts lower enforcement costs but may burden consumers, particularly when market frictions are present. This paper presents the results of a randomized control trial where 2,000 randomly selected, rural Rwandese consumers were offered a line of credit for electricity...

In the 1990s, the World Bank and other development financiers supported a power sector reform framework emphasizing restructuring or unbundling of utilities, creation of regulators, private sector participation (both in terms of financing and managing the operations of power networks and...

Electricity price forecasting has been a topic of significant interest since the deregulation of electricity markets worldwide. The New Zealand electricity market is run primarily on renewable fuels, and so weather metrics have a significant impact on electricity price and volatility. In this...

The profitable exploitation of asset portfolios in the European electricity markets has become more challenging in recent years. This is particularly true for combined heat and power (CHP) generation units that are often facing must-run conditions due to heat demands that need to be satisfied....

How does electricity market integration affect cross-border electricity flows, wholesale prices and renewable electricity generation? We employ a synthetic control method to contribute to literature on electricity market integration using the 2018 integration of Ireland's Single Electricity...

For investors, the decision to install photovoltaic (PV) systems largely depends on whether the investment proves worthwhile. Subsidies play an important role in this context. Currently, the German subsidy programme is based on feed-in tariffs: Property owners are guaranteed a fixed price for 20...

Heterogeneous interconnections, which link regulated electricity markets to liberalised ones, are becoming increasingly important. Several such interconnections are set to be established in the near future especially between European and North African countries (e.g., Tunisia-Italy,...

Energy storage, encompassing not only the storage of electricity but also the storage of energy in various forms such as heat and chemicals, is a linchpin in the movement toward a decarbonized energy sector, due to its myriad roles in fortifying grid reliability, facilitating the integration of...

Socialized pricing mechanisms are common in utility services like electricity because it is critical for daily activities and therefore, considered vital for economic growth. The aim of such mechanisms is to redistribute financial resources from well-off to marginalized consumers. This is seen...

The timing of payment can enhance salience, making customers more price-responsive when paying before consumption rather than after. This study examines Indonesia’s nationwide switch to prepaid electricity metering, impacting over 40 million households. We find that prepaid metering users are...

This study probes the relationship between price and traded volume in electricity exchanges worldwide. Deploying the generalised method of moments estimation on panel data from the day-ahead market of exchanges in 20 countries for the period 2015-2020, this study finds that an increase in the...

The recently adopted Electricity Market Design (EMD) reform includes provisions for the creation of Flexibility Needs Assessments (FNAs) on the national and European level. The reform sets a focus on advancing decarbonization while maintaining a high level of supply security. The FNAs should...

We propose a test to detect a forecast accuracy breakdown in a long memory time series and provide theoretical and simulation evidence on the memory transfer from the time series to the forecast residuals. The proposed method uses a double sup-Wald test against the alternative of a structural...

During the energy crisis in 2022, electricity prices in Germany soared to unprecedented levels. To explore the drivers of the high electricity prices, we develop an electricity dispatch model that simulates hourly equilibrium prices under the assumption of perfect competition. We then extend...