Energy Journal. 2020, Vol. 41 Issue 3, p161-181. 21p.
The objective of this paper is to explain the relationship between high frequency electricity demand, intra-day temperature variation and time. Using the Generalised Additive Model (GAM) framework we link high frequency (5-minute) aggregate electricity demand in Australia to the time of the day, time of the year and intra-day temperature. We document a strong relationship between high frequency electricity demand and intra-day temperature. We show a superior model fit when using Daylight Saving Time (DST), or clock time, instead of the standard (solar) time. We introduce the time weighted temperature model that captures instantaneous electricity demand sensitivity to temperature as a function of the human daily activity cycle, by assigning different temperature signal weighting based on the DST time. The results on DST and time weighted temperature modelling are novel in the literature and are important innovations in high frequency electricity demand forecasting. [ABSTRACT FROM AUTHOR]
Energy Journal. Jan2020, Vol. 41 Issue 1, p259-287. 29p.
Spot prices, Cost, Marketing theory, Gas power plants, Dynamics, Gas turbines, Coal gasification plants, and Electricity
In theory, well designed electricity markets should deliver an efficient mix of technologies at least-cost. But energy market theories and energy market modelling are based upon equilibrium analysis and in practice electricity markets can be off-equilibrium for extended periods. Near-term spot and forward contract prices can and do fall well below, or substantially exceed, relevant entry cost benchmarks and associated long run equilibrium prices. However, given sufficient time higher prices, on average or during certain periods, create incentives for new entrant plant which in turn has the effect of capping longer-dated average spot price expectations at the estimated cost of the relevant new entrant technologies. In this article, we trace generalised new entrant benchmarks and their relationship to spot price outcomes in Australia's National Electricity Market over the 20-year period to 2018; from coal, to gas and more recently to variable renewables plus firming, notionally provided by--or shadow priced at--the carrying cost of an Open Cycle Gas Turbine. This latest entry benchmark relies implicitly, but critically, on the gains from exchange in organised spot markets, using existing spare capacity. As aging coal plant exit, gains from exchange may gradually diminish with 'notional firming' increasingly and necessarily being met by physical firming. At this point, the benchmark must once again move to a new technology set... [ABSTRACT FROM AUTHOR]
Coglianese, John, Gerarden, Todd D., and Stock, James H.
Energy Journal. Jan2020, Vol. 41 Issue 1, p55-81. 27p.
Environmental regulations, Coal sales & prices, Natural gas sales & prices, Environmental auditing, Coal, and Fuel
We decompose the decline in coal production from 2008 to 2016 into the contributions of several sources. In particular, we estimate the effects of declining natural gas prices and the introduction of new environmental regulations along with several other factors, using both monthly state-level data and annual information on coal plant closings. We estimate that the declining price of natural gas relative to coal is responsible for 92 percent of the total decline in coal production over this period and that environmental regulations account for an additional six percent, with other factors making small and offsetting contributions. [ABSTRACT FROM AUTHOR]
Burger, Scott P., Knittel, Christopher R., Pérez-Arriaga, Ignacio J., Schneider, Ian, and Scheidt, Frederik vom
Energy Journal. Jan2020, Vol. 41 Issue 1, p199-239. 41p.
Electricity pricing, Power resources, User charges, Direct costing, Electricity, and Energy storage
Electricity tariffs typically charge residential users a volumetric rate that covers the bulk of energy, transmission, and distribution costs. The resulting prices, charged per unit of electricity consumed, do not reflect marginal costs and vary little across time and space. The emergence of distributed energy resources--such as solar photovoltaics and energy storage--has sparked interest among regulators and utilities in reforming electricity tariffs to enable more efficient utilization of these resources. The economic pressure to redesign electricity rates is countered by concerns of how more efficient rate structures might impact different socioeconomic groups. We analyze the bill impacts of alternative rate plans using interval metering data for more than 100,000 customers in the Chicago, Illinois area. We combine these data with granular Census data to assess the incidence of bill changes across different socioeconomic groups. We find that low-income customers would face bill increases on average in a transition to more economically efficient electricity tariffs. However, we demonstrate that simple changes to fixed charges in two-part tariffs can mitigate these disparities while preserving all, or the vast majority, of the efficiency gains. These designs rely exclusively on observable information and could be replicated by utilities in many geographies across the U.S. [ABSTRACT FROM AUTHOR]
Electric utility costs, Government corporations, Consumers, Developing countries, and Electricity
This paper seeks to explain why billions of people in developing countries either have no access to electricity or lack a reliable supply. We present evidence that these shortfalls are a consequence of electricity being treated as a right and that this sets off a vicious four-step circle. In step 1, because a social norm has developed that all deserve power independent of payment, subsidies, theft, and nonpayment are widely tolerated. In step 2, electricity distribution companies lose money with each unit of electricity sold and in total lose large sums of money. In step 3, government-owned distribution companies ration supply to limit losses by restricting access and hours of supply. In step 4, power supply is no longer governed by market forces and the link between payment and supply is severed, thus reducing customers' incentives to pay. The equilibrium outcome is uneven and sporadic access that undermines growth. [ABSTRACT FROM AUTHOR]
Nuclear energy, Nuclear fusion, Fusion reactors, and Electricity
The article discusses the Tri Alpha Energy (TAE) Technologies company's efforts to develop nuclear energy through its nuclear fusion reactor, including its chief executive Michl Binderbauer's perspective in this regard. The possibility of using the TAE's nuclear reactor for purposes of electricity is discussed.
Macworld - Digital Edition. Jan2020, Vol. 37 Issue 1, p19-23. 5p. 5 Color Photographs.
Streaming audio, Internet access, iPhone mobile apps, Electricity, Electronic newsletters, Radio frequency modulation, and iTunes (Digital music program)
In the case of a power outage that doesn't take down your internet connection, you can also use the battery in a UPS to power your cable modem and router to keep the Wi-Fi on. If you're anywhere where there's a slow data connection, Low Data Mode tells your iPhone to restrict how much data it uses, prioritizing the currently open app. I saved a bunch of articles from The Athletic's iPhone app, let the New York Times app cache a day's worth of content, and gave myself an afternoon's reading. [Extracted from the article]
Game theory, Capitalism, International trade, Foreign exchange market, and Power resources
The aim of the article is to study the theoretical concepts of the development and formation of electricity exchanges in the process of the energy sector liberalization as a necessary component of transformation of the global economy. The article analyzes the evolution of the formation of exchange markets in the global economy and identifies the processes that led to the appearance of a particular product on exchanges. The liberalization of the global energy market and its influence on further development of exchange trade are studied. Modern microeconomic theories are considered, in particular, theory of market structures, mechanism design theory, theory of industrial organization and auction theory, to confirm the laws governing the formation of electricity exchanges in the process of liberalization of this sphere. The paper identifies six successive stages of the transformation of electricity markets, which reflect the transition from monopoly to competitive electricity exchange markets: 1) industrialization and urbanization; 2) globalization; 3) monopolization and centralization of energy supply; 4) reorganization of the electricity market through transition from monopoly to competitive markets; 5) liberalization; 6) acquisition by electricity of characteristics of exchange goods. [ABSTRACT FROM AUTHOR]
Time series analysis, Stock exchanges, Inventories, Electric power consumption, and Electricity
This article analyzes the time series of prices and quantities on the Bulgarian electricity exchange. The focus is on the period between January 2016 and June with the assumption that in this initial period for its operation, the stock exchange trade is not sufficiently liquid. Statistical tests and seasonal decomposition of quantities and prices are made. This allows the determination of their statistical properties. The analysis shows that both time series are characterized by mean reversion and have a weekly seasonality. [ABSTRACT FROM AUTHOR]
Working Papers -- U.S. Federal Reserve Board's Finance & Economic Discussion Series. 2019, Preceding p1-39. 40p.
Electric utility costs, Energy consumption, Electricity, and Evidence
In many settings, misaligned incentives and inadequate monitoring lead employees to take self-interested actions contrary to their employer's wishes, giving rise to the classic principal-agent problem. In this paper, I identify and quantify the costs of misaligned incentives in the context of an energy effciency appliance replacement program. I show that contractors (agents) hired by the electric utility (the principal) increase their compensation by intentionally misreporting program data to deliberately authorize replacement of non-qualified refrigerators. I provide empirical estimates of the impacts of misaligned incentives on (1) the effectiveness of energy efficiency retrofits and (2) welfare. I estimate that unqualified replacements reduce welfare by an average of $106 and save only half as much electricity as replacements that follow program guidelines. The same program without a principal-agent distortion would increase welfare by $60 per replacement. The results provide novel evidence of how principal-agent distortions in the implementation of a potentially benefical program can undermine its value. [ABSTRACT FROM AUTHOR]
Bayesian analysis, Government policy, Industrial productivity, and Electricity
Second, aiming to capture the country-specific effects of regulations and overcome bias aggregation problems, this paper applies a Bayesian shrinkage estimator that models country heterogeneity and relaxes the poolability assumptions of slope parameters. Online Supplemental Appendix Figure 1 shows that countries that faced a deep deregulation process had positive country-specific PMR effects that contrast with the negative direction of the pooled-effect (Belgium Italy and Portugal). [Extracted from the article]
The article focuses on the report released by International Renewable Energy Agency (IRENA) in cooperation with United Nations High Commissioner for Refugees revealing that on-site renewable energy solutions can cost-effectively supply refugee communities with low-cost and reliable electricity.
Environmental Economics and Policy Studies: The Official Journal of the Society for Environmental Economics and Policy Studies / The Official Journal of the Asian Association of Environmental and Resource Economics. :1-17