Journal article

Quantifying the economic efficiency impact of inaccurate renewable energy price forecasts


Authors listCroonenbroeck, Carsten; Huettel, Silke

Publication year2017

Pages767-774

JournalEnergy

Volume number134

ISSN0360-5442

eISSN1873-6785

DOI Linkhttps://doi.org/10.1016/j.energy.2017.06.077

PublisherElsevier


Abstract
We demonstrate a simple approach to quantify economic efficiency losses due to inaccurate energy price forecasts. We show that empirically, forecasting errors have their impact on efficiency losses. There are hints that suggest a time-dependent pattern of deadweight losses. Solar infeed, which is considered to be a strongly volatile form of energy, increases the efficiency loss of energy allocations. For wind power, however, this effect is not significant. After all, we provide yet another argument for the requirement of even more accurate forecasts in order to decrease unwanted losses of economic efficiency, even though we show that at their current state, forecasts are fairly accurate already. (c) 2017 Elsevier Ltd. All rights reserved.



Citation Styles

Harvard Citation styleCroonenbroeck, C. and Huettel, S. (2017) Quantifying the economic efficiency impact of inaccurate renewable energy price forecasts, Energy, 134, pp. 767-774. https://doi.org/10.1016/j.energy.2017.06.077

APA Citation styleCroonenbroeck, C., & Huettel, S. (2017). Quantifying the economic efficiency impact of inaccurate renewable energy price forecasts. Energy. 134, 767-774. https://doi.org/10.1016/j.energy.2017.06.077



Keywords


Deadweight lossEconomic efficiencyElectricity pricesElectricity supply and demandSPOT PRICESWind power

Last updated on 2025-02-04 at 01:31