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Australian electricity market and price volatility
journal contribution
posted on 2016-06-01, 00:00 authored by J Boland, J A Filar, G Mohammadian, Asef NazariAsef NazariAustralian Electricity Market has experienced high price volatility since the deregulation in early 1990s. In this exploratory and preliminary analysis of 2010 data from South Australian electricity market we identify and exhibit a number of phenomena which, arguably, contribute to (A) high cost of electricity supply to consumers and (B) volatility in spot prices. These phenomena include: (i) Distinct bidding patterns of some generators occurring in trading intervals corresponding to periods of low, medium and high spot prices, (ii) Low correlation between electricity demand and spot prices on days when spot price spikes are observed, (iii) Failure of the lottery model and associated Markowitz-type optimisation approaches to adequately explain the shifting structure of generators’ bids and (iv) Unexpectedly high contribution to the consumers costs and risks from the relatively small number of trading intervals where spot price spikes were observed.
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Journal
Annals of operations researchVolume
241Issue
1-2Pagination
357 - 372Publisher
SpringerLocation
Cham, SwitzerlandPublisher DOI
ISSN
0254-5330eISSN
1572-9338Language
engPublication classification
C1.1 Refereed article in a scholarly journalUsage metrics
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