Abstract
COVID-19 disease shocked global economic activity and affected the electricity markets due to lockdown and work-from-home policies. Therefore, this study proposes an empirical analysis to identify the electricity spot price response during the preventive and mandatory insulation in Colombia, where the economic contraction caused the largest decrease in the electricity demand, especially in the industrial sector. The methodology applied was quantile regression to quantify the non-linear effect on the spot price returns, and two sample periods were selected to contrast the results: 2018 and 2019. The main findings showed that regulated demand variation caused the highest variability on the spot price dynamic during the strict quarantine. However, the price could not fully capture the effects of the demand change due to the short duration of the shock and, also, the price variability in 2019 was higher than 2020 by an El Niño shock.
Highlights
Energies 2021, 14, 6989. https://During the first quarter of 2020, the SARS-CoV-2 (COVID-19) disease was declared a world pandemic by the World Health Organization (WHO) [1]
One of the electricity market indicators with more significant changes was the demand caused by the mobility restrictions and the work-from-home policy
The lower price was 81.85 Colombian pesos per kWh (COP/kWh) due to the increase in the the demand demand shock shock and and in in the Likewise, the the median median spot spot price price was was in the water water reservoirs
Summary
Energies 2021, 14, 6989. https://During the first quarter of 2020, the SARS-CoV-2 (COVID-19) disease was declared a world pandemic by the World Health Organization (WHO) [1]. The governments applied different health policies that increased the uncertainty in various economic sectors such as trading, global supply chains, pressured asset pricing, and energy markets [2]. The electricity markets were impacted due to the closedown of some industrial and commercial sectors that affected different market aspects such as the technical, economic, and environmental aspects. One of the electricity market indicators with more significant changes was the demand caused by the mobility restrictions and the work-from-home policy. According to the authors of [3,4,5], demand level, profile, composition, and distribution were altered in different countries. In Europe, e.g., during the lockdown policy, the daily demand presented relevant variations between 2019 and 2020.
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