Search results for "Nordic electricity market"
showing 3 items of 3 documents
Pricing of electricity futures based on locational price differences : empirical evidence from Finland
2016
Tietyn maantieteellisen alueen kilpailullisilla sähkömarkkinoilla on yleensä viitespot-hinta, joka kuvastaa yleistä hintatasoa tukkumarkkinalla, ja jota käytetään johdannaisten viitehintana. Paikallisten markkinoiden hinnat saattavat kuitenkin poiketa tästä viitehinnasta siirtoyhteyksien rajallisuuden takia. Pohjoismaisilla sähkömarkkinoilla ns. systeemi- ja tarjousalueen aluehinnan väliseltä basis-riskiltä suojaudutaan ns. aluehintaero-johdannaisilla (eng. Electricity Price Area Differential, EPAD). Tutkin tässä pro gradu- työssä Suomen tarjousalueen EPAD-tuotteiden ja vastaavan aluehintaeron yhteyttä. Koska sähkö ei ole varastoitavissa, yleisen näkemyksen mukaan sopiva sähköfutuurien hinn…
Pricing of electricity futures based on locational price differences : The case of Finland
2018
We find that the pricing of Finnish electricity market futures has been inefficient during the latest 10 years, when the trading volumes of Electricity Price Area Differentials (EPADs) have more than doubled. Even though the calculated futures premium on EPADs is related to some risk measures and the variables capturing the demand and supply conditions in the spot electricity markets, there has been a significant positive excess futures premium in the Finnish market, and financial market participants should have been able to utilize this also in economic terms. This finding is new and relevant for the participants of the Nordic electricity markets also in the future, because both the specul…
Customer benefits of demand-side management in the Nordic electricity market
2016
The increasing share of renewable energy sources is likely to lead to price effects in Nordic electricity market, resulting especially in increased volatility of spot and imbalance prices. The greater price volatility and amount of required balancing power increase the need for Demand-Side Management (DSM) in the electricity market and may as well increase the financial benefits of DSM participants. In this research I study the DSM in electricity mar-ket and evaluate how large the financial benefits of DSM participants could be. Monte Carlo simulation method is used to simulate imbalance prices with different volatilities for Finland and Sweden. The results show that increasing volatility m…