Skip to main content

Data and Code for: Market Power and Price Exposure: Learning from Changes in Renewable Energy Regulation

URL
https://www.openicpsr.org/openicpsr/project/171462
Description

Given the key role of renewable energies in current and future electricity markets, it is important to understand how they affect firms' pricing incentives in these markets. In this paper, we study whether renewables depress electricity market prices, and how this effect depends on their degree of market price exposure. Our theoretical analysis shows that paying renewables with fixed prices, rather than with market-based prices, is relatively more effective at curbing market power when the dominant electricity firms own large shares of the renewable capacity, and vice-versa. To test this prediction, our empirical analysis leverages several short-lived changes to renewable energy pricing mechanisms in the Spanish electricity market. In this context, we find that the switch from full price exposure to fixed prices caused a 2-4% reduction in the average price-cost markup.

Geographic Coverage:   Spain
Time Period:   2/1/2012 – 1/31/2015
Universe:  Hourly bids of electricity generators in Iberian Electricity Market
Data Type:   administrative records data
Data Source: 
1. Electricity market operator data are in the public domain of OMI-Polo Español, S.A. (OMIE) and can be obtained from https://www.omie.es/en/file-access-list 
Data used and the label in the website as per 22 Sept 2022 (it is possible that the link will change on a later date):
1. Day-ahead bids: curva_pbc_uof “Monthly files with aggregate supply and demand curves of Day-ahead market including bid units”
2. Day-ahead marginal price: marginalpdbc “Day-ahead market hourly prices in Spain” 
3. First intraday bids: curva_pibc_uof “Monthly files with aggregate supply and demnand curves of intraday auction market including bid units”
4. First intraday marginal price: marginalpibc “Intraday auction market hourly prices in Spain” 
5. Prices at equilibrium: ene “Energías Despachadas en casación” this format is no longer available on website.
6. Bilateral contract: pdbf “ Daily functioning basic program” 
Select the periods 2012 to 2015.
Downloaded data will be in zip.
2. System operator data are in the public domain of Red Eléctrica de España (REE) and can be obtained from https://www.esios.ree.es/en/downloads 
Data used and the label in the website:
- Información de detalle por Unidad de Programación: I90DIA
- Data on plant type: C5_liquicomun
Downloaded data will be in zip. Older files are likely archived and have to be manually requested through https://www.portalclientes.ree.es/ 
Below data can be obtain from each specific link (or you can type in the search box)
- Demand D+1 Daily forecast data https://www.esios.ree.es/en/analysis/1775
- Wind D+1 Daily forecast data https://www.esios.ree.es/en/analysis/1777 
Select the periods 2012 to 2015. 
Downloaded data will be in csv.
3. Weather data are public use data with required registration http://www.aemet.es/
To obtain API key register your email in https://opendata.aemet.es/centrodedescargas/inicio
To get the data run “weatherscriptaeropuerto.R” 
4. Engineering parameters for thermal power plants obtained from http://nfabra.uc3m.es/energeia/ 
 
Unit(s) of Observation:   firm, hourly

The following publications are supplemented by the data in this project.

Sample
Format
Single study
Country
Spain
Title
Data and Code for: Market Power and Price Exposure: Learning from Changes in Renewable Energy Regulation
Format
Single study

Tools