Research Programme Energy-Economy-Society (EWG) Econometric Analysis of the Determinants of Electricity Wholesale Prices

Given the perspective of the Swiss energy policy to invest in renewable energy sources in the future, it be-comes highly relevant to understand the traditional fundamental factors that impact Swiss electricity prices. In this project, local and cross-border effects of market fundamentals are analysed that influence electricity prices in Switzerland, taking into account seasonal effects, which have significantly changed up to 2015. In the context of a dynamic fundamental model, the continuous price adaption effect of electricity prices to market fundamentals is investigated and how it depends on different price risk quantiles. The understanding of the risk drivers of electricity prices is of great importance for risk management, production planning, as well as for the energy policy makers in the derivation of long-term energy scenarios.