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How does dynamic price information flow among Northern European electricity spot prices and prices of major electricity generation fuel sources? We use time series models combined with new advances in causal inference to answer these…

Applications · Statistics 2011-10-26 Egil Ferkingstad , Anders Løland , Mathilde Wilhelmsen

Natural gas demand is a crucial factor for predicting natural gas prices and thus has a direct influence on the power system. However, existing methods face challenges in assessing the impact of shocks, such as the outbreak of the…

Machine Learning · Computer Science 2024-07-16 Philipp Kai Peter , Yulin Li , Ziyue Li , Wolfgang Ketter

This paper introduces a novel Bayesian reverse unrestricted mixed-frequency model applied to a panel of nine European electricity markets. Our model analyzes the impact of daily fossil fuel prices and hourly renewable energy generation on…

Econometrics · Economics 2025-07-01 Francesco Ravazzolo , Luca Rossini , Andrea Viselli

We investigate the impact of several critical events associated with the Russo Ukrainian war, started officially on 24 February 2022 with the Russian invasion of Ukraine, on ten European electricity markets, two natural gas markets (the…

Statistical Finance · Quantitative Finance 2024-10-11 Panayotis G. Papaioannou , George P. Papaioannou , George Evangelidis , George Gavalakis

We study the prices of European Emission Allowances (EUA), whereby we analyze their uncertainty and dependencies on related energy prices (natural gas, coal, and oil). We propose a probabilistic multivariate conditional time series model…

Statistical Finance · Quantitative Finance 2023-02-13 Jonathan Berrisch , Sven Pappert , Florian Ziel , Antonia Arsova

Electricity markets are changing, driven by large-scale renewable integration and rising demand from electrification and digitalisation. This raises fundamental questions about how electricity prices form as the relationships among key…

General Economics · Economics 2026-04-17 Shiva Madadkhani , Nils Sturma , Mathias Drton , Svetlana Ikonnikova

Energy markets exhibit complex causal relationships between weather patterns, generation technologies, and price formation, with regime changes occurring continuously rather than at discrete break points. Current approaches model…

Computational Finance · Quantitative Finance 2026-03-12 Dennis Thumm

The energy transition is profoundly reshaping electricity market dynamics. It makes it essential to understand how renewable energy generation actually impacts electricity prices, among all other market drivers. These insights are critical…

Applications · Statistics 2025-01-22 Davide Cacciarelli , Pierre Pinson , Filip Panagiotopoulos , David Dixon , Lizzie Blaxland

Researchers and electricity sector practitioners frequently require the supply curve of electricity markets and the price elasticity of supply for purposes such as price forecasting, policy analyses or market power assessment. It is common…

The recent energy crisis starting in 2021 led to record-high gas, coal, carbon and power prices, with electricity reaching up to 40 times the pre-crisis average. This had dramatic consequences for operational and risk management prompting…

Applications · Statistics 2024-08-27 Paul Ghelasi , Florian Ziel

Accurate forecasts of electricity prices are crucial for the management of electric power systems and the development of smart applications. European electricity prices have risen substantially and became highly volatile after the Russian…

Relationships between the energy and the finance markets are increasingly important. Understanding these relationships is vital for policymakers and other stakeholders as the world faces challenges such as satisfying humanity's increasing…

General Economics · Economics 2025-07-17 Orr Shahar , Stefan Lessmann , Daniel Traian Pele

Human conflict, geopolitical crises, terrorist attacks, and natural disasters can turn large parts of energy distribution networks offline. Europe's current gas supply network is largely dependent on deliveries from Russia and North Africa,…

Physics and Society · Physics 2015-06-18 Rui Carvalho , Lubos Buzna , Flavio Bono , Marcelo Masera , David K. Arrowsmith , Dirk Helbing

The recent liberalization of the electricity and gas markets has resulted in the growth of energy exchanges and modelling problems. In this paper, we modelize jointly gas and electricity spot prices using a mean-reverting model which fits…

Statistical Finance · Quantitative Finance 2018-02-20 Noufel Frikha , Vincent Lemaire

Renewable electricity generation has grown significantly across many European power systems, leading to a greener energy mix, but also additional complexity in balancing electricity supply and demand. Unexpected differences between…

Systems and Control · Electrical Eng. & Systems 2026-05-19 Arnaud Verstraeten , Maria Margarida Mascarenhas , Hussain Kazmi

The availability of historical data related to electricity day-ahead prices and to the underlying price formation process is limited. In addition, the electricity market in Europe is facing a rapid transformation, which limits the…

Applications · Statistics 2023-06-27 Raffaele Sgarlato

The Russian invasion of Ukraine on February 24, 2022 entailed the threat of a drastic and sudden reduction of natural gas supply to the European Union. This paper presents a techno-economic analysis of the consequences of a sudden gas…

General Economics · Economics 2024-09-13 Anton Pichler , Jan Hurt , Tobias Reisch , Johannes Stangl , Stefan Thurner

This paper examines the dependence between electricity prices, demand, and renewable energy sources by means of a multivariate copula model {while studying Germany, the widest studied market in Europe}. The inter-dependencies are…

Applications · Statistics 2022-01-05 Fabrizio Durante , Angelica Gianfreda , Francesco Ravazzolo , Luca Rossini

This study employs the Causal Machine Learning (CausalML) statistical method to analyze the influence of electricity pricing policies on carbon dioxide (CO2) levels in the household sector. Investigating the causality between potential…

Machine Learning · Computer Science 2024-03-26 Iman Emtiazi Naeini , Zahra Saberi , Khadijeh Hassanzadeh

The interconnected European Electricity Markets see considerable cross-border trade between different countries. In conjunction with the structure and technical characteristics of the power grid and its operating rules, the corresponding…

Physics and Society · Physics 2019-08-09 Mirko Schäfer , Fabian Hofmann , Hazem Abdel-Khalek , Anke Weidlich
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