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

Chi-Keung WOO, J. Zarnikau, E. Cutter, S. T. Ho, H. Y. Leung

Research output: Contribution to journalArticlepeer-review

18 Citations (Scopus)


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 languageEnglish
Pages (from-to)29-48
Number of pages20
JournalElectricity Journal
Issue number1
Publication statusPublished - 1 Jan 2015

Scopus Subject Areas

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


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