Virtual bidding, wind generation and California's day-ahead electricity forward premium

Chi Keung WOO, Jay ZARNIKAU, Eric CUTTER, S. T. HO, H. Y. LEUNG

Research output: Contribution to journalArticle

13 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. Copyright © 2014 Elsevier Inc. All rights reserved.
Original languageEnglish
Pages (from-to)29-48
JournalElectricity Journal
Volume28
Issue number1
DOIs
Publication statusPublished - 2015

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Citation

Woo, C. K., Zarnikau, J., Cutter, E., Ho, S. T., & Leung, H. Y. (2015). Virtual bidding, wind generation and California's day-ahead electricity forward premium. The Electricity Journal, 28(1), 29-48. doi: 10.1016/j.tej.2014.12.006