Evaluating the impact of solar and wind production uncertainty on prices using quantile regression

In the past two decades the penetration and the importance of renewable energy sources (RES) has greatly increased. In turn, demand for accurate forecasts of solar and wind power, and their relations with energy demand and prices has increased too. In contrast with other conventional energy productions, photovoltaic and wind power generation is intrinsically stochastic and highly volatile, mainly due to weather conditions. As a consequence, energy traders, utilities and transmission systems operators, trading in the dispatching services markets, increasingly require reliable information concerning the effects of RES' uncertainty production on prices.