TITLE:
Price Spikes in the Italian Electricity Market: An Economic Analysis
AUTHORS:
Stefano Zedda, Giovanni Batista Masala
KEYWORDS:
Electricity Markets, Auctions, Bid and Offer, Price Spikes, Probit Model
JOURNAL NAME:
Modern Economy,
Vol.10 No.9,
September
29,
2019
ABSTRACT: Since their liberalization, the electricity markets
are characterized by a rather high volatility, which includes price spikes as
one of the stylized and specific characteristics of this market. In this paper,
we investigate the factors and mechanisms determining these spikes. Based on
the Italian electricity market data, we perform a specific analysis of the
auctions mechanisms and of the hourly bid and offer of electricity
characteristics, for determining how and why do price spikes occur.