Virtual Bidding, Wind Generation and California's Day-Ahead Electricity Forward Premium

C. K. Woo; J. Zarnikau; E. Cutter; S. T. Ho; H. Y. Leung

doi:10.1016/j.tej.2014.12.006

Virtual Bidding, Wind Generation and California's Day-Ahead Electricity Forward Premium

C. K. Woo, J. Zarnikau, E. Cutter, S. T. Ho, H. Y. Leung

Research output: Contribution to journal › Journal article › peer-review

26 Citations (Scopus)

Abstract

Deregulated electricity markets in the U.S. and elsewhere exhibit volatile spot market prices, chiefly because of the non-storable nature of electricity and the need to balance system demand and supply in real time. A study of California's electricity markets finds virtual bidding (VB) has reduced the volatility of the state's day-ahead hourly forward premiums, and that rising wind generation has altered the premium level and volatility. These findings suggest VB has improved market-price convergence in California's day-ahead and real-time markets, notwithstanding wind generation's effect on California's electricity market prices.

Original language	English
Pages (from-to)	29-48
Number of pages	20
Journal	Electricity Journal
Volume	28
Issue number	1
DOIs	https://doi.org/10.1016/j.tej.2014.12.006
Publication status	Published - 1 Jan 2015

Scopus Subject Areas

Business and International Management
Energy (miscellaneous)
Management of Technology and Innovation

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abstract = "Deregulated electricity markets in the U.S. and elsewhere exhibit volatile spot market prices, chiefly because of the non-storable nature of electricity and the need to balance system demand and supply in real time. A study of California's electricity markets finds virtual bidding (VB) has reduced the volatility of the state's day-ahead hourly forward premiums, and that rising wind generation has altered the premium level and volatility. These findings suggest VB has improved market-price convergence in California's day-ahead and real-time markets, notwithstanding wind generation's effect on California's electricity market prices.",

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Virtual Bidding, Wind Generation and California's Day-Ahead Electricity Forward Premium

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