The impact of variable renewable energy technologies on electricity markets: An analysis of the Turkish balancing market

2021-04-01
Sirin, Selahattin Murat
Yılmaz, Berna Nisa
Show full item record
Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.
407
views
0
downloads
As global investment in renewable energy technologies continue to trend upward, the effects of variable (intermittent) renewable energy technologies on power markets have created serious challenges for regulators and policymakers. The literature on the effects of these technologies on day-ahead markets has been well established; however, further research is required on intra-day and real-time (balancing) markets to understand how these technologies are changing electricity market dynamics. In this respect, this study aims to assess the effects of the variable renewable energy technologies (wind and run-of-river hydro) on Turkish balancing market prices using quantile regression. In addition, ordered logistic regression is used to evaluate how system imbalances are changing as a result of these technologies. Model results show that system marginal price declines as variable renewable energy generation increases. Moreover, there is a higher probability of positive imbalance as the positive difference between real-time and projected variable renewable energy generation increases. Overall, an increase in variable renewable energy generation implies lower prices, but higher positive imbalances for the system. Hence, we recommend that Turkey should revise its current market design to incorporate the geographical and temporal generation characteristics of these technologies.
Balancing market, Quantile regression, Turkey, Variable energy sources, Wind
https://www.scopus.com/inward/record.uri?partnerID=HzOxMe3b&scp=85101002220&origin=inward
https://hdl.handle.net/11511/90709
Department of Business Administration, Article

Suggestions

The impact of crude oil prices on financial market indicators: copula approach
Kayalar, Derya Ezgi; KÜÇÜKÖZMEN, CUMHUR ÇOŞKUN; Kestel, Sevtap Ayşe (2017-01-01)
Oil price changes have varying impacts on the financial indicators of global markets and economies. This study aims to explore the dependence structure between crude oil prices and stock market indices, as well as the exchange rates in a number of economies categorized with respect to their status as developing/emerging markets, and oil importer/exporter countries. Dependence structures in this study are evaluated in considerable depth using copula models. The broad time period covered allows the investigat...
Potential impacts of climate change on wind energy resources in Türkiye
Işık Çetin, İrem; Yücel, İsmail; Arı, İzzet; Department of Earth System Science (2023-3-02)
Increasing the use of renewable energy is crucial in reducing the adverse effects of climate change. However, climate change will also affect weather-dependent renewable energy resources. Therefore, this study aims to identify the effects of climate change on the wind energy resources in Türkiye, which is in the Mediterranean hotspot, in the next century by using recent climate projections (CMIP6) with two different scenarios. The study includes four different results for wind resources in Türkiye. First, t...
Rethinking wind energy in its social context: conflicting perspectives and planning problems – the Karaburun experience
Özçam, Zeynep; Pınarcıoğlu, Mehmet Melih; Department of City and Regional Planning (2016)
As a result of global concerns about energy related environmental problems, the use of renewable energy resources has gained great importance. The renewables are widely recognized as an effective tool for limiting energy related emissions and a fundamental component of sustainable development. Among these, especially wind energy has considerable involvement. Due to this, major national policies intend to support wind energy and wind energy installations have also started to grow with an expanding rate. Like...
Overcoming problems in Turkey's renewable energy policy: How can EU contribute?
Sirin, Selahattin Murat; Ege, Aylin (2012-09-01)
Fossil fuels cover most of the energy demand in the world, and this creates significant social, economic and environmental problems. Many countries have taken measures to increase the share of renewable energy sources (RES), especially in electricity generation, and the review of literature shows that the success of a country in RES diffusion depends on a comprehensive renewable energy policy which combines political commitment with stable and long-term support measures that stimulate technological innovati...
A real options approach to valuation of photovoltaic power investments on rooftops of residential areas in Turkey
Or, Bartu; Birgönül, Mustafa Talat; Dikmen Toker, İrem; Department of Civil Engineering (2023-1-24)
Diminishing non-renewable energy resources, increasing energy prices, and the outgrowth of carbon footprints have made investments in renewable energy resources indispensable. Power generation through renewable solar energy can be made through state-of-art photovoltaic (PV) systems. Although PV systems on residential rooftops offer great solar energy potential, initial costs are considerably high, and there exist such uncertainties as fluctuating PV panel prices, changing meteorological conditions affecting...
Citation Formats
S. M. Sirin and B. N. Yılmaz, “The impact of variable renewable energy technologies on electricity markets: An analysis of the Turkish balancing market,” Energy Policy, pp. 0–0, 2021, Accessed: 00, 2021. [Online]. Available: https://www.scopus.com/inward/record.uri?partnerID=HzOxMe3b&scp=85101002220&origin=inward.
METU IIS - Integrated Information Service open@metu.edu.tr