The Impact of Renewable Electricity on the Czech Electricity Balancing Market
|Author:||Mgr. Amálie Kašparová|
|Year:||2021 - summer|
|Leaders:|| Mgr. Luboš Hanus
|Work type:|| Finance, Financial Markets and Banking
|Awards and prizes:|
|Abstract:||As global investments in renewable energy technologies continue to grow, their
effects on electricity markets are a challenge for regulators and policymakers.
The thesis examines the effects of forecast errors of Czech and German renewable energy sources on the size and volatility of the system imbalance of the
Czech balancing market. Using a quantile regression and ARFIMA-GARCH
models on hourly data, I found that higher solar and wind forecast errors increase the system imbalance in absolute terms and affect the volatility. The
results show that the Czech solar and wind forecast errors have significantly
higher effect than the German forecast errors on the size and volatility of the
system imbalance. The strongest effect on the size and volatility of the system
imbalance have the Czech solar forecast errors. Therefore, the Czech government should insist on improving the accuracy and availability of renewable
energy forecasts from the transmission system operator CEPS.