Effects of the COVID-19 pandemic on the spot price of Colombian electricity

A. Oviedo-Gómez, S.M. Londoño Hernández, D-F. Manotas Duque

Energies Vol. 14, nº. 21, pp. 6989-1 - 6989-14

Summary:

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.

Keywords: COVID-19; pandemic; lockdown; electricity prices; electricity demand; electricity market; quantile regression approach

JCR Impact Factor and WoS quartile: 3,252 - Q3 (2021); 3,200 - Q3 (2022)

DOI reference: https://doi.org/10.3390/en14216989

Published on paper: November 2021.

Published on-line: October 2021.

Citation:
A. Oviedo-Gómez, S.M. Londoño Hernández, D-F. Manotas Duque, Effects of the COVID-19 pandemic on the spot price of Colombian electricity. Energies. Vol. 14, nº. 21, pp. 6989-1 - 6989-14, November 2021. [Online: October 2021]