Firm location, regional weather conditions and bid pricing strategies in the Colombian wholesale electricity market

John J. Garcia Rendon, Jesús López-Rodríguez, Jhonny Moncada-Mesa

Producción científica: Contribución a una revistaArtículo en revista científica indexadarevisión exhaustiva

1 Cita (Scopus)

Resumen

Weather conditions in Colombia vary greatly throughout the territory. This fact, in the context of Colombian wholesale electricity, plays a key role in the bid pricing strategies and intensity of the strategic behaviour among plants. We estimate a dynamic spatial Durbin model to factor in the effects weather conditions have on bid pricing. The results show how energy inputs become critical for setting bid prices, a fact that is reinforced by the predominance of hydraulic generation technologies. One potential policy recommendation is the need to implement balancing markets to signal efficiently the pricing strategies in these markets.
Idioma originalEspañol (Colombia)
Páginas (desde-hasta)1554-1570
Número de páginas17
PublicaciónRegional Studies
Volumen56
N.º9
DOI
EstadoPublicada - 25 nov. 2021

Palabras clave

  • Colombia
  • bid price
  • dynamic spatial Durbin
  • regional weather conditions
  • strategic behaviour
  • wholesale electricity market

Tipos de Productos Minciencias

  • Artículos de investigación con calidad A1 / Q1

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