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Energy Market Prices in Times of COVID-19: The Case of Electricity and Natural Gas in Spain.
- Source :
-
Energies (19961073) . 3/15/2021, Vol. 14 Issue 6, p1632-1632. 1p. - Publication Year :
- 2021
-
Abstract
- The COVID-19 pandemic is having a strong impact on the economies of all countries, negatively affecting almost all sectors. This paper compares Spanish electricity and natural gas prices in the first half-year of 2020 with the prices expected for that period at the end of 2019. The half-year of 2020 selected coincides with the period of greatest impact of COVID-19 on Spanish society. Expected prices and their future probability distributions are calculated using a stochastic model with deterministic and stochastic parts; the stochastic part includes mean-reverting and jumps behaviour. The model is calibrated with 2016–2019 daily spot prices for electricity and with day-ahead prices for natural gas. The results show large monthly differences between the prices expected at the end of the year 2019 and the actual prices for the half-year; in May 2020, wholesale electricity prices are found to be EUR 31.60/MWh lower than expected, i.e., 60% lower. In the case of natural gas, the prices in the same month are EUR 8.96/MWh lower than expected, i.e., 62% lower. The spark spread (SS) is positive but lower than expected and also lower than in the same months of the previous year. [ABSTRACT FROM AUTHOR]
- Subjects :
- *MARKET prices
*COVID-19
*NATURAL gas
*MARKET pricing
*COVID-19 pandemic
*ELECTRICITY
Subjects
Details
- Language :
- English
- ISSN :
- 19961073
- Volume :
- 14
- Issue :
- 6
- Database :
- Academic Search Index
- Journal :
- Energies (19961073)
- Publication Type :
- Academic Journal
- Accession number :
- 149610966
- Full Text :
- https://doi.org/10.3390/en14061632