The price impacts of the exit of the Hazelwood coal power plant
Autor(a) principal: | |
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Data de Publicação: | 2022 |
Outros Autores: | |
Tipo de documento: | Artigo |
Idioma: | eng |
Título da fonte: | Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) |
Texto Completo: | http://hdl.handle.net/10400.14/44093 |
Resumo: | This paper estimates the price impacts of the unanticipated closure of Hazelwood, a large brown coal power plant (1600 MW) in Victoria, Australia. We measure the total impact of the closure on prices in Australia's National Electricity Market for each half-hour interval, and for each state, 12 months from closure. We also break down the impact into direct and indirect effects and find that the total impact of the closure on prices varies considerably across half-hours. The results vary not only in magnitude and across time, but also in statistical significance. Our estimates suggest an upper bound for the impact on the average half-hourly price of $24.02/MWh 12 months from closure, with a total market impact of $6,527.4 million. When we break down the total impact into direct and indirect effects, we find the latter to be the main driver of our results, through a reduction in the merit-order effect of wind generation. |
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The price impacts of the exit of the Hazelwood coal power plantClosure of coal power plantElectricity marketsMarket impactsThis paper estimates the price impacts of the unanticipated closure of Hazelwood, a large brown coal power plant (1600 MW) in Victoria, Australia. We measure the total impact of the closure on prices in Australia's National Electricity Market for each half-hour interval, and for each state, 12 months from closure. We also break down the impact into direct and indirect effects and find that the total impact of the closure on prices varies considerably across half-hours. The results vary not only in magnitude and across time, but also in statistical significance. Our estimates suggest an upper bound for the impact on the average half-hourly price of $24.02/MWh 12 months from closure, with a total market impact of $6,527.4 million. When we break down the total impact into direct and indirect effects, we find the latter to be the main driver of our results, through a reduction in the merit-order effect of wind generation.Veritati - Repositório Institucional da Universidade Católica PortuguesaGonçalves, RicardoMenezes, Flávio2022-122022-12-01T00:00:00Z2025-11-29T00:00:00Zinfo:eu-repo/semantics/publishedVersioninfo:eu-repo/semantics/articleapplication/pdfhttp://hdl.handle.net/10400.14/44093eng0140-988310.1016/j.eneco.2022.10639885142805008000894967600013info:eu-repo/semantics/embargoedAccessreponame:Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)instname:Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informaçãoinstacron:RCAAP2024-03-05T01:37:01Zoai:repositorio.ucp.pt:10400.14/44093Portal AgregadorONGhttps://www.rcaap.pt/oai/openaireopendoar:71602024-03-20T03:13:19.419507Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) - Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informaçãofalse |
dc.title.none.fl_str_mv |
The price impacts of the exit of the Hazelwood coal power plant |
title |
The price impacts of the exit of the Hazelwood coal power plant |
spellingShingle |
The price impacts of the exit of the Hazelwood coal power plant Gonçalves, Ricardo Closure of coal power plant Electricity markets Market impacts |
title_short |
The price impacts of the exit of the Hazelwood coal power plant |
title_full |
The price impacts of the exit of the Hazelwood coal power plant |
title_fullStr |
The price impacts of the exit of the Hazelwood coal power plant |
title_full_unstemmed |
The price impacts of the exit of the Hazelwood coal power plant |
title_sort |
The price impacts of the exit of the Hazelwood coal power plant |
author |
Gonçalves, Ricardo |
author_facet |
Gonçalves, Ricardo Menezes, Flávio |
author_role |
author |
author2 |
Menezes, Flávio |
author2_role |
author |
dc.contributor.none.fl_str_mv |
Veritati - Repositório Institucional da Universidade Católica Portuguesa |
dc.contributor.author.fl_str_mv |
Gonçalves, Ricardo Menezes, Flávio |
dc.subject.por.fl_str_mv |
Closure of coal power plant Electricity markets Market impacts |
topic |
Closure of coal power plant Electricity markets Market impacts |
description |
This paper estimates the price impacts of the unanticipated closure of Hazelwood, a large brown coal power plant (1600 MW) in Victoria, Australia. We measure the total impact of the closure on prices in Australia's National Electricity Market for each half-hour interval, and for each state, 12 months from closure. We also break down the impact into direct and indirect effects and find that the total impact of the closure on prices varies considerably across half-hours. The results vary not only in magnitude and across time, but also in statistical significance. Our estimates suggest an upper bound for the impact on the average half-hourly price of $24.02/MWh 12 months from closure, with a total market impact of $6,527.4 million. When we break down the total impact into direct and indirect effects, we find the latter to be the main driver of our results, through a reduction in the merit-order effect of wind generation. |
publishDate |
2022 |
dc.date.none.fl_str_mv |
2022-12 2022-12-01T00:00:00Z 2025-11-29T00:00:00Z |
dc.type.status.fl_str_mv |
info:eu-repo/semantics/publishedVersion |
dc.type.driver.fl_str_mv |
info:eu-repo/semantics/article |
format |
article |
status_str |
publishedVersion |
dc.identifier.uri.fl_str_mv |
http://hdl.handle.net/10400.14/44093 |
url |
http://hdl.handle.net/10400.14/44093 |
dc.language.iso.fl_str_mv |
eng |
language |
eng |
dc.relation.none.fl_str_mv |
0140-9883 10.1016/j.eneco.2022.106398 85142805008 000894967600013 |
dc.rights.driver.fl_str_mv |
info:eu-repo/semantics/embargoedAccess |
eu_rights_str_mv |
embargoedAccess |
dc.format.none.fl_str_mv |
application/pdf |
dc.source.none.fl_str_mv |
reponame:Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) instname:Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação instacron:RCAAP |
instname_str |
Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação |
instacron_str |
RCAAP |
institution |
RCAAP |
reponame_str |
Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) |
collection |
Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) |
repository.name.fl_str_mv |
Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) - Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação |
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1799137787242348544 |