LONG-TERM SEASONAL FORWARDS IN ELECTRICITY GENERATION MARKETS: AN APPLICATION TO COLOMBIA
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| Format: | Artículo científico |
| Language: | en |
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Universidad Nacional de Colombia
2018
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| author | David Tobón-Orozco |
| author_facet | David Tobón-Orozco |
| contents | LONG-TERM SEASONAL FORWARDS IN ELECTRICITY GENERATION MARKETS: AN APPLICATION TO COLOMBIA David Tobón-Orozco Esteban Velilla Jorge Barrientos Fernando Villada Jesús López-Lezama Economía y Finanzas D61 L13 L43 JEL: D43 game theory Seasonal components have been found in the price of most commodities, where prices are largely determined by the anticipation of seasonal demand and/or supply. This paper presents a methodology to determine seasonal forward prices in the electricity generation markets. A Cournot competition to characterize this market is assumed. Forward prices are calculated in accordance with the demand elasticity of the forwards and spot price through a differential or “gap” that represents the risk premium for the current forwards, plus some non-observable heterogeneities. The distribution of the given quantities in seasonal contracts is carried out through the classic portfolio theory. This methodology is applied to the Colombian case, and shows that it will be more profitable for generators to sell the proposed seasonal hydric forwards. 2018 artículo científico 0121-4772 https://www.redalyc.org/articulo.oa?id=282157688001 https://www.redalyc.org/journal/2821/282157688001/ https://www.redalyc.org/journal/2821/282157688001/html/ https://www.redalyc.org/journal/2821/282157688001/282157688001.epub https://www.redalyc.org/journal/2821/282157688001/movil 10.15446/cuad.econ.v37n74.54299 en http://www.redalyc.org/revista.oa?id=2821 Cuadernos de Economía application/pdf Universidad Nacional de Colombia Cuadernos de Economía (Colombia) Num.74 Vol.XXXVII |
| format | Artículo científico |
| id | redalyc_282157688001 |
| institution | Redalyc |
| language | en |
| publishDate | 2018 |
| publisher | Universidad Nacional de Colombia |
| spellingShingle | LONG-TERM SEASONAL FORWARDS IN ELECTRICITY GENERATION MARKETS: AN APPLICATION TO COLOMBIA David Tobón-Orozco Economía y Finanzas D61 L13 L43 JEL: D43 game theory LONG-TERM SEASONAL FORWARDS IN ELECTRICITY GENERATION MARKETS: AN APPLICATION TO COLOMBIA David Tobón-Orozco Esteban Velilla Jorge Barrientos Fernando Villada Jesús López-Lezama Economía y Finanzas D61 L13 L43 JEL: D43 game theory Seasonal components have been found in the price of most commodities, where prices are largely determined by the anticipation of seasonal demand and/or supply. This paper presents a methodology to determine seasonal forward prices in the electricity generation markets. A Cournot competition to characterize this market is assumed. Forward prices are calculated in accordance with the demand elasticity of the forwards and spot price through a differential or “gap” that represents the risk premium for the current forwards, plus some non-observable heterogeneities. The distribution of the given quantities in seasonal contracts is carried out through the classic portfolio theory. This methodology is applied to the Colombian case, and shows that it will be more profitable for generators to sell the proposed seasonal hydric forwards. 2018 artículo científico 0121-4772 https://www.redalyc.org/articulo.oa?id=282157688001 https://www.redalyc.org/journal/2821/282157688001/ https://www.redalyc.org/journal/2821/282157688001/html/ https://www.redalyc.org/journal/2821/282157688001/282157688001.epub https://www.redalyc.org/journal/2821/282157688001/movil 10.15446/cuad.econ.v37n74.54299 en http://www.redalyc.org/revista.oa?id=2821 Cuadernos de Economía application/pdf Universidad Nacional de Colombia Cuadernos de Economía (Colombia) Num.74 Vol.XXXVII |
| title | LONG-TERM SEASONAL FORWARDS IN ELECTRICITY GENERATION MARKETS: AN APPLICATION TO COLOMBIA |
| topic | Economía y Finanzas D61 L13 L43 JEL: D43 game theory |
| url | https://www.redalyc.org/articulo.oa?id=282157688001 https://www.redalyc.org/journal/2821/282157688001/ https://www.redalyc.org/journal/2821/282157688001/html/ https://www.redalyc.org/journal/2821/282157688001/282157688001.epub https://www.redalyc.org/journal/2821/282157688001/movil |