Large and volatile within-day spreads in the day-ahead electricity market, defined as the daily maximum minus the minimum of hourly day-ahead prices, shape arbitrage revenues and therefore investment incentives for flexibility resources such as batteries, demand response, and vehicle-to-grid (V2G). They also provide a market-based signal of scarcity and surplus in power systems with rising...
The ongoing decarbonization of the power sector has fundamentally transformed electricity markets in many countries. In countries like Germany, renewable production accounts for a dominant share of the overall production (see Bundesnetzagentur SMARD (2025)). As a consequence, the risk profile of power producers has shifted: instead of relying primarily on controllable thermal power plants with...
