This paper focuses on the relationship between the European Union Emission Trading System allowances' prices and the Italian electricity price, aiming at assessing whether such a mechanism has been a driver for the decarbonization of the power sector. To this aim, we calculate the long-run...

This study investigates the evolution of electricity consumption across residential and industrial sectors in Taiwan. By applying the dynamic factor model, we classify the fluctuations in electricity consumption into aggregate, regional, and individual factors, which sheds light on the latent...

This paper investigates the relationship between the increasing-block-tariffs (IBT) for electricity, and the propensity of households to purchase dirty fuels. We combine RLMS-HSE, a panel household data, with the introduction of the IBT schemes for residential electricity in three experimental...

Solar and wind power are now cheaper than fossil fuels but are intermittent. The extra supply-side variability implies growing benefits of using real-time retail pricing (RTP). We evaluate the potential gains of RTP using a model that jointly solves investment, supply, storage, and demand to...

Motivated by the relatively infrequent but very large price spikes in the day-ahead and real-time energy markets operated by the Electric Reliability Council of Texas, this paper proposes an insurance that a retail electric provider (REP) may buy to mitigate financial insolvency caused by...

This work presents a novel method for generating electricity price scenarios from statistical properties of past electricity prices using a hybrid statistical and reduced-form stochastic model. Previous work in applying stochastic differential equations (SDE) to model electricity prices has...

In the context of smart markets’ popularization, day-ahead pricing of electricity has been deployed more commonly as an attempt to improve the grid’s operation and maximize the socioeconomic welfare. However, estimating the utility function is necessary to maximize the socioeconomic welfare,...

We analyse the drivers of European Power Exchange (EPEX) retail electricity prices between 2012 and early 2022 using machine learning. The agnostic random forest approach that we use is able to reduce in-sample root mean square errors (RMSEs) by around 50% when compared to a standard linear...

We use a panel dataset of residential rooftop solar adoption for 27 states from 2008 to 2018 to estimate demand for rooftop solar and the impact of net energy metering compensation. We find demand is highly price elastic and that income is elastic as well. We find a large cross-price effect with...

Demand response (DR) programs have gained much attention during the last three decades to optimize the decisions of the electricity market participants considering demand-side management (DSM). They can potentially enhance system reliability and manage price volatility by modifying the amount or...

Increasing block pricing is a popular tariff structure for pricing electricity and water services with the ambition to subsidize low-income consumers, encourage resource conservation, and recover costs. Using the bunching method, we empirically test whether households respond to marginal prices...

Since 2015 available cross-border transmission capacity is determined using flow-based market coupling (FBMC) in the day-ahead electricity markets of Central Western Europe. This paper empirically estimates the effect of introducing FBMC on electricity price convergence and cross-border exchange...

In this paper, we present an arithmetic electricity spot price model based on generalized Langevin equations. In this setup, we investigate electricity forward pricing under future information modeled by initially enlarged filtrations. Hence, our model not only accounts for memory effects via...

Increasing variable renewable power generation (e.g., wind) is expected to reduce wholesale electricity prices by virtue of its low marginal production cost. This merit-order effect of renewables displacing incumbent conventional (e.g., gas) generation forms the theoretical underpinning for...

We consider an electric utility company that serves retail electricity customers over a discrete-time horizon. In each period, the company observes the customers' consumption as well as high-dimensional features on customer characteristics and exogenous factors. A distinctive element of our work...

Based on a discrete choice experiment with 582 households in Switzerland, we find, that about 30% of the consumers focus on price risks (cost focus) when they choose an electricity tariff, while 70% of the customers are more worried about volume risks (comfort focus). Customers with a cost...

We employ the indicator saturation approach on electricity price series from the National Electricity Market (NEM) in Australia to simultaneously model the stylised facts of electricity prices, including extreme spikes, seasonality, level-shifts, and autocorrelation. Standard modelling methods...

Electric Vehicles (EV) present a unique challenge to electric power system (EPS) operations because of the potential magnitude and timing of load increases due to EV charging. Time-of-Use (TOU) electricity pricing is an established way to reduce peak system loads. It is effective at shifting the...

With increasing renewable energy penetration and the extension of the power system scale, accurate electricity price prediction has long become a challenging task. The complexity of electricity market information, insufficient model training, and the lack of model generalization ability limit...

Energy challenges are crucial issues to achieve Sustainable Development and its goals. Energy availability and affordability are pillars for ending poverty, giving access to commodities as well as water, etc. Modern lives rely on appliances and gadgets based on electric energy being its price a...

This paper examines the distribution effects of the existing increasing block price (IBP) system that governs the Indian residential electricity sector. By taking advantage of the observed customer heterogeneity (rural-urban divide, user size), IBP is possible to generate higher revenues while...

This paper studies the effect of the revised tariff on households’ electricity consumption in Ethiopia using two rounds of household survey data. The study finds that pre-paid customers reduce their consumption of electricity equivalent to 8% of their monthly electricity expenditure and around...

More than twenty years have passed since some states restructured their intra-state electricity markets, opening these former monopoly markets to competition. A number of studies have subsequently examined such restructurings, yet two key characteristics of the extant research create the...

The main purpose of this paper is investigating the effect of renewable energy generation on retail residential prices while confirming the policy influences from Renewable Portfolio Standard (RPS) on the prices. The empirical results show that renewable energy generation reduces residential...

We examine heterogeneity in Norwegian households’ price responses to critical peak pricing (CPP) on electricity consumption, using a large-scale randomized controlled trial (RCT), high-frequency electricity data, and default enrollment. Increasing the grid transmission charge by 4,067%...

This article examines the impact of market restructuring on retail prices, using the restructuring of the electricity industry as a case study. Utilizing synthetic control as an estimation strategy, this paper finds full restructuring reduced prices across all sectors by an average of $1.5/MWh,...

This study examines the consumer welfare effects of subsidy schemes in Vietnam’s residential electricity market based on two approaches: cash transfer and quantity–based subsidy. The study finds that, in order to attain more equal distribution across households, the reform should remove all...

Demand response program is being implemented in the National Electricity Market of Singapore, which boosts the flexibility of demand side to actively participate in the real-time electricity market. Meanwhile, it is also significant to implement such a program in the day-ahead market, since load...

Starting from a theoretical model of coalition formation, we analyse which price markers are more adequate to identify clues of a partial cartel. Based on the theoretical model, we argue that measures of the shape of a distribution (such as kurtosis and skewness) are more adequate to partial...

Constraints on electric power system carbon emissions will make optimal increased reliance on variable renewable energy (VRE, mainly wind and solar generation), which has near zero marginal operating costs. Using capacity expansion modeling of electric power systems in three US regions in...

We evaluate a stated choice experiment on dynamic electricity tariffs based on two representative household surveys from Germany and Japan. Our results indicate significant differences between German and Japanese respondents' preferences towards dynamic tariffs, with the latter generally being...