TY - JOUR
T1 - A robust statistical analysis of the role of hydropower on the system electricity price and price volatility
AU - Owolabi, Olukunle O.
AU - Lawson, Kathryn
AU - Sengupta, Sanhita
AU - Huang, Yingsi
AU - Wang, Lan
AU - Shen, Chaopeng
AU - Getmansky Sherman, Mila
AU - Sunter, Deborah A.
N1 - Publisher Copyright:
© 2022 The Author(s). Published by IOP Publishing Ltd.
PY - 2022/7/1
Y1 - 2022/7/1
N2 - Hydroelectric power (hydropower) is unique in that it can function as both a conventional source of electricity and as backup storage (pumped hydroelectric storage and large reservoir storage) for providing energy in times of high demand on the grid (S. Rehman, L M Al-Hadhrami, and M M Alam), (2015 Renewable and Sustainable Energy Reviews, 44, 586-98). This study examines the impact of hydropower on system electricity price and price volatility in the region served by the New England Independent System Operator (ISONE) from 2014-2020 (ISONE, ISO New England Web Services API v1.1."https://webservices.iso-ne.com/docs/v1.1/, 2021. Accessed: 2021-01-10). We perform a robust holistic analysis of the mean and quantile effects, as well as the marginal contributing effects of hydropower in the presence of solar and wind resources. First, the price data is adjusted for deterministic temporal trends, correcting for seasonal, weekend, and diurnal effects that may obscure actual representative trends in the data. Using multiple linear regression and quantile regression, we observe that hydropower contributes to a reduction in the system electricity price and price volatility. While hydropower has a weak impact on decreasing price and volatility at the mean, it has greater impact at extreme quantiles (>70th percentile). At these higher percentiles, we find that hydropower provides a stabilizing effect on price volatility in the presence of volatile resources such as wind. We conclude with a discussion of the observed relationship between hydropower and system electricity price and volatility.
AB - Hydroelectric power (hydropower) is unique in that it can function as both a conventional source of electricity and as backup storage (pumped hydroelectric storage and large reservoir storage) for providing energy in times of high demand on the grid (S. Rehman, L M Al-Hadhrami, and M M Alam), (2015 Renewable and Sustainable Energy Reviews, 44, 586-98). This study examines the impact of hydropower on system electricity price and price volatility in the region served by the New England Independent System Operator (ISONE) from 2014-2020 (ISONE, ISO New England Web Services API v1.1."https://webservices.iso-ne.com/docs/v1.1/, 2021. Accessed: 2021-01-10). We perform a robust holistic analysis of the mean and quantile effects, as well as the marginal contributing effects of hydropower in the presence of solar and wind resources. First, the price data is adjusted for deterministic temporal trends, correcting for seasonal, weekend, and diurnal effects that may obscure actual representative trends in the data. Using multiple linear regression and quantile regression, we observe that hydropower contributes to a reduction in the system electricity price and price volatility. While hydropower has a weak impact on decreasing price and volatility at the mean, it has greater impact at extreme quantiles (>70th percentile). At these higher percentiles, we find that hydropower provides a stabilizing effect on price volatility in the presence of volatile resources such as wind. We conclude with a discussion of the observed relationship between hydropower and system electricity price and volatility.
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U2 - 10.1088/2515-7620/ac7b74
DO - 10.1088/2515-7620/ac7b74
M3 - Article
AN - SCOPUS:85134648433
SN - 2515-7620
VL - 4
JO - Environmental Research Communications
JF - Environmental Research Communications
IS - 7
M1 - 075003
ER -
