Reducing fossil fuel-based generation: Impact on wholesale electricity market prices in the North-Italy bidding zone

Abstract Decarbonisation policies aim at reducing fossil fuel based generation in favour of cleaner renewable energy sources. Changes in the generation mix to supply future electricity demand will require tools capable to emulate the bidding behaviour of new generation plants. Price forecasting tools lacking this feature and only based on historical data time series might soon become not satisfactory for this scope. This paper presents a methodology that, by considering hourly electricity generation offers (price, volumes) datasets, allows simulating future electricity wholesale's prices. This... Mehr ...