Comparative Analysis of Resilience Performance and Mechanisms in Wholesale Electricity Markets: U.S. and E.U. Response to Natural Gas Price Shocks During the 2022 Global Energy Crisis

DOI

10.2991/978-94-6463-702-1_46How to use a DOI?

Keywords

Wholesale electricity markets; Day-ahead markets; Resilience mechanism; Conditional quantile regression analysis; U.S.; E.U

Abstract

The 2022 global energy crisis, triggered by soaring natural gas prices, severely impacted wholesale electricity markets, particularly in the E.U., where electricity prices surged drastically. This study compares the resilience of U.S. and E.U. wholesale electricity markets in responding to natural gas price shocks. A conditional quantile regression model was developed to analyze the performance of six U.S. Independent System Operators (ISOs) and the wholesale markets of 27 E.U. countries. Results show that U.S. markets, especially those employing capacity mechanisms, exhibited stronger resilience. Within the E.U., countries like Spain, Portugal, and Poland also demonstrated better resilience. Capacity mechanisms such as capacity payments or auctions played a crucial role in enhancing market resilience, while markets lacking these mechanisms were more vulnerable. This study provides key insights for policymakers aiming to improve the resilience of electricity markets in the face of future energy crises.

Copyright

© 2025 The Author(s)

Open Access

Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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TY  - CONF
AU  - Mingze Qin
PY  - 2025
DA  - 2025/05/05
TI  - Comparative Analysis of Resilience Performance and Mechanisms in Wholesale Electricity Markets: U.S. and E.U. Response to Natural Gas Price Shocks During the 2022 Global Energy Crisis
BT  - Proceedings of the 2025 10th International Conference on Financial Innovation and Economic Development (ICFIED 2025)
PB  - Atlantis Press
SP  - 431
EP  - 444
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6463-702-1_46
DO  - 10.2991/978-94-6463-702-1_46
ID  - Qin2025
ER  -