Variable renewable energy technologies in the Turkish electricity market: Quantile regression analysis of the merit-order effect

Date

2020-09-01

Author

Sirin, Selahattin Murat
Yılmaz, Berna Nisa

Metadata

Show full item record

This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.

Item Usage Stats

431
views

0
downloads

The share of variable renewable energy sources in power supply has increased significantly in many countries; however, this increase has also created problems in electricity markets. While the average day-ahead market price has declined in several markets (the merit-order effect), the remuneration mechanisms in some countries have to be revised due to the surge in financial costs. Yet, further research is needed to understand the implications of the merit-order effect for remuneration mechanisms thoroughly. Accordingly, this study aims to contribute to the literature through employing a quantile regression model to analyze the merit-order effect and discuss its implications for the remuneration mechanism in Turkish electricity market. Model results show significant negative merit-order effect for both wind and run-of-river hydro technologies; however, this effect varies with respect to demand, price level and technology. Moreover, the contribution of these technologies to the total welfare in the Turkish electricity market does not favor fixed-price payments. In conclusion, it is recommended that the remuneration mechanism is revised to include the temporal value of variable renewable energy sources and electricity market design should reflect the locational value of variable renewable energy sources in Turkey.

Subject Keywords

General Energy, Management, Monitoring, Policy and Law

URI

https://hdl.handle.net/11511/63255

Journal

ENERGY POLICY

DOI

https://doi.org/10.1016/j.enpol.2020.111660

Collections

Department of Business Administration, Article

Suggestions

OpenMETU
Core

The merit order effect of wind and river type hydroelectricity generation on Turkish electricity prices Acar, Berkan; Selcuk, Orhun; Dastan, Seyit Ali (Elsevier BV, 2019-09-01) The environmental concerns and dependency on gas imports push Turkish policy makers to find ways of increasing the share of renewable sources in electricity generation. Providing incentives for renewable energy in the form of feed-in-tariffs is one of the measures to achieve this goal. Basing on the data of Turkish electricity market operator, we quantified the magnitude of the price effects of wind and river type hydro generations on hourly average of day-ahead prices. We find that wind and river type hydr...
Forecasting production of fossil fuel sources in Turkey using a comparative regression and ARIMA model Ediger, Volkan S.; Akar, Sertac; Ugurlu, Berkin (Elsevier BV, 2006-12-01) This study aims at forecasting the most possible curve for domestic fossil fuel production of Turkey to help policy makers to develop policy implications for rapidly growing dependency problem on imported fossil fuels. The fossil fuel dependency problem is international in scope and context and Turkey is a typical example for emerging energy markets of the developing world. We developed a decision support system for forecasting fossil fuel production by applying a regression, ARIMA and SARIMA method to the ...
Behavioral aspects of regulation: A discussion on switching and demand response in Turkish electricity market Sirin, Selahattin Murat; Gönül, Mustafa Sinan (Elsevier BV, 2016-10-01) Electricity sector has been transformed from state-owned monopolistic utilities to competitive markets with an aim to promote incentives for improving efficiency, reducing costs and increasing service quality to customers. One of the cardinal assumptions of the liberalized and competitive electricity markets is the rational actor, and decision-makers are assumed to make the best decisions that maximize their utility. However, a vast literature on behavioral economics has shown the weakness of economic theor...
Diverging Water Management Paradigms between Turkey and the European Union Kibaroğlu, Ayşegül; SÜMER, VAKUR (Informa UK Limited, 2007-01-01) Since the early 1990s, the integrated water resources management (IWRM) approach has been championed and adopted by some of the industrialized states. The present paper analyzes the IWRM approach through an historical narrative while emphasizing divergences in the priorities and requirements of the developing and developed countries. Then, the paper examines water resources management in Turkey taking into consideration the political and economic structure of the country. Turkey, being the accession country...
Environmental feasibility analysis of a coal fired power plant project in Gadani, Pakistan Ali, Syed Muhammad Hassan; Fahrioglu, Murat; Zuberi, Muhammad Jibran Shahzad; Qureshi, Fassahat Ullah (Inderscience Publishers, 2017-01-01) The electricity demand and supply gap in Pakistan has reached 6,000 MW, for which the Government of Pakistan has planned some power generating projects. Environmental feasibility analysis is done for one of these projects. The Government of Pakistan has planned to build a coal-based mega power plant project of 6,600 MW capacity at Gadani, Karachi. Coal for this project will be imported from South Africa, Indonesia and Australia, even though Pakistan also has huge reserves of coal at Thar, Sindh. CO2 of 208....

Citation Formats

S. M. Sirin and B. N. Yılmaz, “Variable renewable energy technologies in the Turkish electricity market: Quantile regression analysis of the merit-order effect,” ENERGY POLICY, pp. 0–0, 2020, Accessed: 00, 2020. [Online]. Available: https://hdl.handle.net/11511/63255.