Template-Type: ReDIF-Paper 1.0
Author-Name: Huisman, R.
Author-Name-Last: Huisman
Author-Name-First: Ronald
Title: The Influence of Temperature on Spike Probability in Day-Ahead Power Prices
Abstract: It is well known that day-ahead prices in power markets exhibit spikes. These spikes are sudden increases in the day-ahead price that occur because power production is not flexible enough to respond to demand and/or supply shocks in the short term. This paper focuses on how temperature influences the probability on a spike. The paper shows that the difference between the actual and expected temperature significantly influences the probability on a spike and that the impact of temperature on spike probability depends on the season.
Creation-Date: 2007-06-08
File-URL: https://repub.eur.nl/pub/10179/ERS-2007-039-F&A.pdf
File-Format: application/pdf
Series: RePEc:ems:eureri
Number: ERS-2007-039-F&A
Classification-JEL: G3, M, N7
Keywords: Day-ahead power price, Power production, Spike probability, Temperature
Handle: RePEc:ems:eureri:10179