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

Principal Investigator(s): View help for Principal Investigator(s) Natalia Fabra, Universidad Carlos III de Madrid; Imelda ., Graduate Institute of International and Development Studies

Version: View help for Version V1

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cleaning			05/31/2022 07:38:AM
data			09/26/2022 11:41:AM
plot			05/31/2022 07:28:AM
stata_code			11/16/2022 10:00:AM
stata_data			05/31/2022 07:30:AM
tables			05/31/2022 07:31:AM
ReadMe.pdf	application/pdf	205.2 KB	12/06/2022 05:41:AM

Project Citation:

Fabra, Natalia, and . Imelda. Data and Code for: Market Power and Price Exposure: Learning from Changes in Renewable Energy Regulation. Nashville, TN: American Economic Association [publisher], 2023. Ann Arbor, MI: Inter-university Consortium for Political and Social Research [distributor], 2023-10-18. https://doi.org/10.3886/E171462V1

Project Description

Summary:

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.

Funding Sources: European Research Council (ERC) under the European Union Horizon 2020 Research and Innovation Program (772331)

Scope of Project

Subject Terms: Secondary data

JEL Classification:
      L13 Oligopoly and Other Imperfect Markets
      L51 Economics of Regulation
      L94 Electric Utilities
      Q28 Renewable Resources and Conservation: Government Policy
      Q41 Energy: Demand and Supply; Prices

Geographic Coverage: Spain

Time Period(s): 2/1/2012 – 1/31/2015

Collection Date(s): 1/1/2012 – 12/31/2015

Universe: Hourly bids of electricity generators in Iberian Electricity Market

Data Type(s): administrative records data

Methodology

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

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Published Versions

V1 [2023-10-18]

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