This thesis examines the relationship between weather variables (wind speeds and temperature), fossil fuel prices (natural gas and coal), and electricity prices in Sweden's electricity market from 2013 to 2023. This research employs multiple linear regression to quantitatively analyze how weather variables and fossil fuel prices influence electricity prices across Sweden's four electricity price areas (SE1, SE2, SE3, and SE4). The study utilized electricity price data from Nord Pool, meteorological data from the Swedish Meteorological and Hydrological Institute, and energy commodity price data from the International Monetary Fund. The findings reveal that wind speeds have a negative correlation with electricity prices in each electricity price area analyzed. Similarly, temperature also exhibits a negative correlation with electricity prices. In contrast, natural gas and coal prices show a positive correlation with electricity prices. The explanatory power of natural gas and coal prices is higher compared to weather variables; however, this influence diminishes in the northern electricity price areas. Addressing gaps in existing research, this thesis enhances the understanding of the energy market amid the transition towards more sustainable energy systems. The findings have implications for policy formulation and market strategy, particularly in enhancing energy security and sustainability in Sweden. Additionally, this study explores the merit order effect, emphasizing how renewable energy integration influences electricity market volatility and pricing. By providing a comprehensive analysis of these factors, this research offers valuable insights for stakeholders aiming to navigate and optimize the evolving landscape of Sweden's electricity market.
| Identifer | oai:union.ndltd.org:UPSALLA1/oai:DiVA.org:su-231441 |
| Date | January 2024 |
| Creators | Ahmed, Ali, Lisa, Jonsson, Naima, Ahmed |
| Publisher | Stockholms universitet, Finansiering |
| Source Sets | DiVA Archive at Upsalla University |
| Language | English |
| Detected Language | English |
| Type | Student thesis, info:eu-repo/semantics/bachelorThesis, text |
| Format | application/pdf |
| Rights | info:eu-repo/semantics/openAccess |
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