Impact of Wind and Solar Generation on the Italian Zonal Electricity Price
This paper assesses the impact of increasing wind and solar power generation on zonal market prices in the Italian electricity market from 2015 to 2019, employing a multivariate regression model. A significant aspect to be considered is how the additional wind and solar generation brings changes in...
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Online Access: | https://www.mdpi.com/1996-1073/14/18/5858 |
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doaj-21d71b7ea94d4d9790bfbc85db1b513c2021-09-26T00:05:36ZengMDPI AGEnergies1996-10732021-09-01145858585810.3390/en14185858Impact of Wind and Solar Generation on the Italian Zonal Electricity PriceMahmood Hosseini Imani0Ettore Bompard1Pietro Colella2Tao Huang3Department of Energy, Politecnico di Torino, 10129 Torino, ItalyDepartment of Energy, Politecnico di Torino, 10129 Torino, ItalyDepartment of Energy, Politecnico di Torino, 10129 Torino, ItalyDepartment of Energy, Politecnico di Torino, 10129 Torino, ItalyThis paper assesses the impact of increasing wind and solar power generation on zonal market prices in the Italian electricity market from 2015 to 2019, employing a multivariate regression model. A significant aspect to be considered is how the additional wind and solar generation brings changes in the inter-zonal export and import flows. We constructed a zonal dataset consisting of electricity price, demand, wind and solar generation, net input flow, and gas price. In the first and second steps of this study, the impact of additional wind and solar generation that is distributed across zonal borders is calculated separately based on an empirical approach. Then, the Merit Order Effect of the intermittent renewable energy sources is quantified in every six geographical zones of the Italian day-ahead market. The results generated by the multivariate regression model reveal that increasing wind and solar generation decreases the daily zonal electricity price. Therefore, the Merit Order Effect in each zonal market is confirmed. These findings also suggest that the Italian electricity market operator can reduce the National Single Price by accelerating wind and solar generation development. Moreover, these results allow to generate knowledge advantageous for decision-makers and market planners to predict the future market structure.https://www.mdpi.com/1996-1073/14/18/5858inter-zonal exchangeItalian wholesale power marketMerit Order Effectmultivariate regressionsolar power integrationwind power integration |
collection |
DOAJ |
language |
English |
format |
Article |
sources |
DOAJ |
author |
Mahmood Hosseini Imani Ettore Bompard Pietro Colella Tao Huang |
spellingShingle |
Mahmood Hosseini Imani Ettore Bompard Pietro Colella Tao Huang Impact of Wind and Solar Generation on the Italian Zonal Electricity Price Energies inter-zonal exchange Italian wholesale power market Merit Order Effect multivariate regression solar power integration wind power integration |
author_facet |
Mahmood Hosseini Imani Ettore Bompard Pietro Colella Tao Huang |
author_sort |
Mahmood Hosseini Imani |
title |
Impact of Wind and Solar Generation on the Italian Zonal Electricity Price |
title_short |
Impact of Wind and Solar Generation on the Italian Zonal Electricity Price |
title_full |
Impact of Wind and Solar Generation on the Italian Zonal Electricity Price |
title_fullStr |
Impact of Wind and Solar Generation on the Italian Zonal Electricity Price |
title_full_unstemmed |
Impact of Wind and Solar Generation on the Italian Zonal Electricity Price |
title_sort |
impact of wind and solar generation on the italian zonal electricity price |
publisher |
MDPI AG |
series |
Energies |
issn |
1996-1073 |
publishDate |
2021-09-01 |
description |
This paper assesses the impact of increasing wind and solar power generation on zonal market prices in the Italian electricity market from 2015 to 2019, employing a multivariate regression model. A significant aspect to be considered is how the additional wind and solar generation brings changes in the inter-zonal export and import flows. We constructed a zonal dataset consisting of electricity price, demand, wind and solar generation, net input flow, and gas price. In the first and second steps of this study, the impact of additional wind and solar generation that is distributed across zonal borders is calculated separately based on an empirical approach. Then, the Merit Order Effect of the intermittent renewable energy sources is quantified in every six geographical zones of the Italian day-ahead market. The results generated by the multivariate regression model reveal that increasing wind and solar generation decreases the daily zonal electricity price. Therefore, the Merit Order Effect in each zonal market is confirmed. These findings also suggest that the Italian electricity market operator can reduce the National Single Price by accelerating wind and solar generation development. Moreover, these results allow to generate knowledge advantageous for decision-makers and market planners to predict the future market structure. |
topic |
inter-zonal exchange Italian wholesale power market Merit Order Effect multivariate regression solar power integration wind power integration |
url |
https://www.mdpi.com/1996-1073/14/18/5858 |
work_keys_str_mv |
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1717367091251642368 |