The Swedish electricity market has seen a surge in demand over the past fifty years. Since the deregulation in 1996, both the demand and supply side of the market has evolved into a competitive space for market actors. This has resulted in unique conditions, characterizing the nordic electricity market as being very much dependent on demand predictability. Demand flexibility has been investigated frequently, but as certain sector developments constantly affect electricity consumption, such as price volatility and green technology development, the price- and temperature elasticities should be revised continuously. Hourly-price contracts specifically, are on the rise in price area SE1, with a rise from 6 percent to 8 percent during the middle of 2023, meaning consumption patterns are of interest for the future as the trend continues. This has, to the authors’ knowledge, not been investigated within the municipality of Luleå, which is the basis for this master’s thesis. Two methodologies were adopted to investigate the elasticities, (1) an ordinary least squares (OLS) regression model and (2) two weighted least squares (WLS) regression models. The results indicate that the price elasticity of demand in Luleå is still very inelastic, with temperature bearing the main explanatory power for household electricity consumption patterns.
| Identifer | oai:union.ndltd.org:UPSALLA1/oai:DiVA.org:ltu-106092 |
| Date | January 2024 |
| Creators | Bäckman, Edvin, Hedegård, Gustaf |
| Publisher | Luleå tekniska universitet, Institutionen för ekonomi, teknik, konst och samhälle |
| 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 |
Page generated in 0.0028 seconds