JOURNAL BROWSE
Search
Advanced SearchSearch Tips
The Impact of Nuclear Power Generation on Wholesale Electricity Market Price
facebook(new window)  Pirnt(new window) E-mail(new window) Excel Download
 Title & Authors
The Impact of Nuclear Power Generation on Wholesale Electricity Market Price
Jung, Sukwan; Lim, Nara; Won, DooHwan;
  PDF(new window)
 Abstract
Nuclear power generation is a major power source which accounts for more than 30% of domestic electricity generation. Electricity market needs to secure stability of base load. This study aimed at analyzing relationships between nuclear power generation and wholesale electricity price (SMP: System Marginal Price) in Korea. For this we conducted ARDL(Autoregressive Distributed Lag) approach and Granger causality test. We found that in terms of total effects nuclear power supply had a positive relationship with SMP while nuclear capacity had a negative relationship with SMP. There is a unidirectional Granger causality from nuclear power supply to SMP while the reverse was not. Nuclear power is closely related to SMP and provides useful information for decision making.
 Keywords
Nuclear Power Generation;Electricity Price;ARDL;
 Language
English
 Cited by
 References
1.
Ahn, I. H., An Empirical Analysis of System Marginal Price Volatility in the Electricity Wholesale Market of Korea: Korea Polytechnic University Graduate School of Knowledge-based Technology & Energy, 2015.

2.
Andersson, B., and E. Haden, "Power Production and the Price of Electricity: an analysis of a phase-out of Swedish nuclear Power," Energy Policy, Vol. 25, 1997, pp. 1051-1064. crossref(new window)

3.
Bentzen, J., and T. Engsted, A revival of the autoregressive distributed lag model in estimating energy demand relationships. Energy, Vol. 26, No. 1, 2001, pp. 45-55. crossref(new window)

4.
Brown, R. L., J. Durbin., and J. M. Evans, "Techniques for testing the constancy of regression relationships over time," journal of the royal statistical society, series B (methodological), Vol. 37, No. 2, 1975, pp. 149-63.

5.
Carlton, D. W., and J. M. Perloff, Modern industrial organization. Scott, Foresman/ Little, Brown Higher Education, 1990.

6.
Choi, H. S., Research on the effect of independent power producer in Korea electricity market, Graduate School of Public Administration Seoul National University, 2013, MA thesis.

7.
Enders, W. Applied Econometric Time Series. MA, United States: John Wiley and Sons Inc., 2010.

8.
Engle, R. F., and C. W. Granger, "Co-integration and error correction: Representation, estimation, and testing," Econometrica: Journal of the Econometric Society, 1987, pp. 251-76.

9.
Electricity Market Surveillance Committee, 2013 annual report electricity market trends & analysis. Seoul: Korea Power Exchange, 2014.

10.
Glomsrod, S., T. Wei, T. Mideksa, and B. H. Samset, "Energy Market Impacts of Nuclear Power Phase-out Policies," CICERO Working Paper 2013, Oslo.

11.
Granger, C. W., "Investigating causal relations by econometric models and cross-spectral methods," Econometrica: Journal of the Econometric Society, 1969, pp. 424-438.

12.
Kim, D. Y., C. J. Lee, M. H. Lee, J. B. Park, and J. R. Shin, "A Day-Ahead System Marginal Price Forecasting Using ARIMA Model," THE TRANSACTION OF THE KOREAN INSTITUTE OF ELECTRICAL ENGINEERS, Vol. 2005, No. 7, 2005, pp. 819-821.

13.
Kim, D. Y., C. J. Lee, Y. W. Jung, J. B. Park, and J. R. Shin, "Development of System Marginal Price Forecasting Method Using ARIMA Model," THE TRANSACTION OF THE KOREAN INSTITUTE OF ELECTRICAL ENGINEERS A, Vol. 55, No. 2, 2006, pp. 85-93.

14.
Kim, S. D., and Y. H. Sonn, "An Empirical Analysis on the Determination Process of Wholesale Power Price: With Its Focus on Capacity Payment and Settlement Price," Korea Energy Economic Review, Vol. 7, No. 2, 2008, pp. 27-52.

15.
Kim, Y. S., and G. H. Wang, "A study on the determination of the wholesale price in Korean electricity market," The Korean Journal of Industrial Organization, Vol. 11, No. 1, 2003, pp. 93-122.

16.
Ko, S. H. and B. J. Chung, "Electricity Cost Variations subject to Nuclear and Renewable Power Portions," Journal of Energy Engineering, Vol. 15, No. 1, 2006, pp. 14-22.

17.
Korea Development Institute, and I. C. Nam, Competition policy for the electricity industry of Korea. Seoul: Korea Development Institute, 2012.

18.
Korea Power Exchange, Power market operation regulations. Seoul: KPX, 2010.

19.
Lee, M., Effect of Nuclear Power Generation on Electricity Price in Korea. Seoul: Korea Atomic Energy Research Institute, 1994.

20.
Ozturk, I., and A. Acaravci., "$CO_2$ emissions, energy consumption and economic growth in turkey," Renewable and Sustainable Energy Reviews, Vol. 14, No. 9, 2010, pp. 3220-3225. crossref(new window)

21.
Park, M. H., Y. T. Moon, and J. G. Park., "An Analysis on the Causal Relation Among SMP, Base-Load Share, LNG Import Price, and Exchange Rate," Journal of the Korean Institute of Illuminating and Electrical Installation Engineers, Vol. 28, No. 7, 2014, pp. 97-105. crossref(new window)

22.
Pesaran, M. H., and Y. C. Shin, "An autoregressive distributed-lag modelling approach to cointegration analysis," Econometric Society Monographs, Vol. 31, 1998, pp. 371-413.

23.
Pesaran, M. H., Y. C. Shin, and R. J. Smith., "Bounds testing approaches to the analysis of level relationships," Journal of Applied Econometrics, Vol. 16, No. 3, 2001, pp. 289-326. crossref(new window)

24.
Traber, T., and C. Kemfert, German Nuclear Phase-out Policy: Effects on European Electricity Wholesale Price, Emission Prices, Conventional Power Plant Investments and Electricity Trade Discussion papers of DIW Berlin 1219, DIW Berlin: German Institute for Economic Research, 2012.

25.
Weron, R., "Electricity price forecasting: A review of the state-of-the-art with a look into the future," International Journal of Forecasting, Vol. 30, No. 4, 2014, pp. 1030-1081. crossref(new window)

26.
Woo, C. K., T. Ho, J. Zarnikau, A. Olson, R. Jones, M. Chait, I. Horowitz, and J. Wang, "Electricity-Market Price and nuclear Power Plant Shutdown: Evidence from California," Energy Policy, Vol. 73, 2014, pp. 234-244. crossref(new window)