Modeling realized volatility on the Spanish intra-day electricity market

A-Tier
Journal: Energy Economics
Year: 2016
Volume: 58
Issue: C
Pages: 152-163

Authors (2)

Score contribution per author:

2.011 = (α=2.01 / 2 authors) × 2.0x A-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

This paper models the realized volatility of the hourly prices from the six sessions of the Spanish intra-day electricity market for the period 2002–2014. Based on the sequential organization of the market, a model in which realized volatility depends on its own past and that of the other sessions is specified and then modified in two ways. On the one hand, total variation is decomposed into jump and non-jump components and on the other hand EGARCH innovations are considered. Estimation results show significant volatility transmissions between the sessions. Out-of-sample forecast criteria select EGARCH innovations for sessions 1 and 2, while simpler models with no EGARCH innovations and no jump distinction are preferred for sessions 5 and 6. We argue how results are driven by the market structure, the market design and the regulation of renewable generation.

Technical Details

RePEc Handle
repec:eee:eneeco:v:58:y:2016:i:c:p:152-163
Journal Field
Energy
Author Count
2
Added to Database
2026-01-29