Evolution of electricity markets from the perspective of production and organized markets

Electricity markets were initially established based on a vertically integrated organizational framework. The market segments underwent a process of vertical unbundling, which subsequently led to their division into four distinct categories: generation, transmission, distribution, and retail. In the first chapter of this thesis, the most common electricity market supply industry problems have been presented. Four prominent problems emerge as noteworthy, encompassing generation inadequacy, missing money, market power, and renewable intermittency. Among these problems, there exists a network of unidirectional, bidirectional, and potentially nonlinear dynamic relationships. A holistic approach is even more crucial given the complex interactions between problems. In the second chapter, the impact of renewable energy on electricity prices has been examined with panel data analysis for 25 European countries. We employed the Pesaran CD test for cross-sectional dependence, the Pesaran and Yamagata (2008) method for slope heterogeneity, and the dynamic common correlated effect estimator to explain the market clearing prices. The model results demonstrate that European countries experience the merit order effect, where the capacity of renewable energy lowers prices. This chapter presents the impact of merit order effect for generators, consumers, and policy makers. In the third chapter, the impact of solar and wind generation on market clearing prices have been examined in Turkey as an example of a developing country. We use of machine learning techniques for analysis is one of its distinguishing characteristics. According to polynomial learner results, solar and wind generation both decreased the electricity market clearing price. In addition, solar generation has a negligible effect on market clearing price volatility below a certain threshold, but reduces it above a certain demand level. However, wind generation increases volatility at both low and high demand levels.