Assessing the regional redistributive effect of renewable power production through a spot market algorithm simulator: the case of Italy
| Autor: | Anna Creti, Stanislao Gualdi, Silvia Concettini |
|---|---|
| Přispěvatelé: | EconomiX, Université Paris Nanterre (UPN)-Centre National de la Recherche Scientifique (CNRS), Institut de recherche juridique interdisciplinaire (IRJI), Université de Tours (UT), Laboratoire d'Economie de Dauphine (LEDa), Institut de Recherche pour le Développement (IRD)-Université Paris Dauphine-PSL, Université Paris sciences et lettres (PSL)-Université Paris sciences et lettres (PSL)-Centre National de la Recherche Scientifique (CNRS) |
| Jazyk: | angličtina |
| Rok vydání: | 2022 |
| Předmět: |
Economics and Econometrics
Distribution (economics) Energy transition Supply and demand JEL: Q - Agricultural and Natural Resource Economics • Environmental and Ecological Economics/Q.Q4 - Energy/Q.Q4.Q48 - Government Policy JEL: C - Mathematical and Quantitative Methods/C.C6 - Mathematical Methods • Programming Models • Mathematical and Simulation Modeling/C.C6.C63 - Computational Techniques • Simulation Modeling Electricity market Economics Production (economics) Substitution effect JEL: Q - Agricultural and Natural Resource Economics • Environmental and Ecological Economics/Q.Q5 - Environmental Economics/Q.Q5.Q58 - Government Policy C - Mathematical and Quantitative Methods::C6 - Mathematical Methods Programming Models Mathematical and Simulation Modeling::C63 - Computational Techniques Simulation Modeling [QFIN]Quantitative Finance [q-fin] business.industry Zonal merit order effect JEL: Q - Agricultural and Natural Resource Economics • Environmental and Ecological Economics/Q.Q4 - Energy/Q.Q4.Q42 - Alternative Energy Sources JEL: Q - Agricultural and Natural Resource Economics • Environmental and Ecological Economics/Q.Q4 - Energy/Q.Q4.Q41 - Demand and Supply • Prices JEL: L - Industrial Organization/L.L9 - Industry Studies: Transportation and Utilities/L.L9.L94 - Electric Utilities Spot market Renewable energy General Energy Congestion Renewable sources business Algorithm |
| Zdroj: | Energy Economics Energy Economics, 2022, 114 |
| Popis: | In order to study the sensitivity of market equilibria to changes in production from renewable units at different locations, we developed an algorithm that simulates the hourly equilibrium (price–quantity) of the Italian day-ahead market. Our analysis shows that, when power markets are organised on zonal basis with locational price signals and final buyers pay a unique wholesale price, a larger renewable production decreases the average zonal prices, but the distribution of benefits largely depends on power plants’ localisation. We study the impact of such expansion on network congestion occurrence, supply–demand zonal balance and zonal generation mix; we calculate the zonal substitution effects between renewable and non-renewable technologies, and within renewable technologies. We finally discuss the possible implications on national and local market power. Our paper analyses the multifaceted consequences of energy transition policies based on boosting renewable production and it highlights the importance of location in such expansion; in zonal markets, this aspect in crucial to get price decrease. |
| Databáze: | OpenAIRE |
| Externí odkaz: |
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