The Integration of Renewables in Continuous Intraday Markets for Electricity
Posted: 7 Mar 2014 Last revised: 22 Aug 2015
Date Written: February 14, 2014
This paper proposes an analytical model to explain how the uncertain feed-in from renewable energy sources shapes continuous intraday markets for electricity. The basic idea of the model is to use the day-ahead uniform-price auction as a reference framework to illustrate how forecast errors are balanced in the intraday market. The model is used to give insights into the price-setting decision of market participants, to explain prices from the German electricity market and to show some determinants of integration costs.
Keywords: Intraday market, Continuous trading, Integration of renewables, Balancing forecast errors
JEL Classification: L94, Q41, D40
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