Journal article
Authors list: Croonenbroeck, Carsten; Huettel, Silke
Publication year: 2017
Pages: 767-774
Journal: Energy
Volume number: 134
ISSN: 0360-5442
eISSN: 1873-6785
DOI Link: https://doi.org/10.1016/j.energy.2017.06.077
Publisher: Elsevier
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 style: Croonenbroeck, 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 style: Croonenbroeck, 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 loss; Economic efficiency; Electricity prices; Electricity supply and demand; SPOT PRICES; Wind power