The Integrated Nordic End-User Electricity Market - Feasibility and identified obstacles

International Nuclear Information System (INIS)

2006-02-01

The report identifies the various obstacles that currently exist which prevent the formation of a truly integrated Nordic electricity end-user market. The obstacles have been divided into three categories: technical, regulatory and commercial. NordREG proposes that to further integrate the Nordic end-user electricity markets, a number of differences of technical, legal and market nature ought to be gradually harmonized in order to facilitate market entry and cross-border trade. Technical obstacles: Especially the following problems related to the data and metering systems should be solved: Transferred messages, information and message timing should be harmonised; Message format should be decided; A common data transmission protocol should be specified. New solutions like web-based solutions should be studied; The identification of the final customers' metering point should be harmonised. Regulatory obstacles: The identified regulatory obstacles relate to three areas, namely the division of tasks between monopoly and competitive activities, the operation and duties of distribution network operators including how these are regulated, and the legal framework to provide protection for small end users. On the basis of the review of regulatory obstacles, the following recommendations are made: The principles of neutrality and the way these principles are being supervised by the regulator is a key issue to improve the functioning of the Nordic end-user market. Regulators should seek to harmonise regulation on neutrality and put it high on the agenda in a forthcoming process of market integration; The procedures for switching supplier should be as smooth, easy and quick as possible. It is also important that suppliers, especially the new market entrants, can participate in reliable, transparent and fluent switching practices, since this lowers the threshold for entering other than domestic electricity market. The switching model should be harmonised for the Nordic end

The Integrated Nordic End-User Electricity Market - Feasibility and identified obstacles

Energy Technology Data Exchange (ETDEWEB)

NONE

2006-02-15

The report identifies the various obstacles that currently exist which prevent the formation of a truly integrated Nordic electricity end-user market. The obstacles have been divided into three categories: technical, regulatory and commercial. NordREG proposes that to further integrate the Nordic end-user electricity markets, a number of differences of technical, legal and market nature ought to be gradually harmonized in order to facilitate market entry and cross-border trade. Technical obstacles: Especially the following problems related to the data and metering systems should be solved: Transferred messages, information and message timing should be harmonised; Message format should be decided; A common data transmission protocol should be specified. New solutions like web-based solutions should be studied; The identification of the final customers' metering point should be harmonised. Regulatory obstacles: The identified regulatory obstacles relate to three areas, namely the division of tasks between monopoly and competitive activities, the operation and duties of distribution network operators including how these are regulated, and the legal framework to provide protection for small end users. On the basis of the review of regulatory obstacles, the following recommendations are made: The principles of neutrality and the way these principles are being supervised by the regulator is a key issue to improve the functioning of the Nordic end-user market. Regulators should seek to harmonise regulation on neutrality and put it high on the agenda in a forthcoming process of market integration; The procedures for switching supplier should be as smooth, easy and quick as possible. It is also important that suppliers, especially the new market entrants, can participate in reliable, transparent and fluent switching practices, since this lowers the threshold for entering other than domestic electricity market. The switching model should be harmonised for the Nordic end

Forecasting prices and price volatility in the Nordic electricity market

International Nuclear Information System (INIS)

2001-01-01

We develop a stochastic model for long term price forecasting in a competitive electricity market environment. It is demonstrated both theoretically and through model simulations that non-stochastic models may give biased forecasts both with respect to price level and volatility. In the paper, the model concept is applied on the restructured Nordic electricity market. It is specially in peak load hours that a stochastic model formulation provides significantly different results than an expected value model. (author)

The electricity market 2003

International Nuclear Information System (INIS)

2003-01-01

The electricity markets in the Nordic countries have undergone major changes since the electricity market reform work was started in the early 1990s. We now have a common Nordic electricity market that includes all of the Nordic countries, with the exception of Iceland. The objective of the electricity market reform is to introduce increased competition, to give consumers greater freedom of choice and also, by open and increased trade in electricity, create the conditions for efficient pricing. The Swedish Energy Agency is the supervisory authority specified in the Electricity Act, and one of the tasks entrusted to it by the Government is to follow developments on the electricity market and regularly compile and report current market information. The purpose of 'The Electricity Market 2003' publication is to meet the need for generalized and easily accessible information on the conditions on the Nordic market. The publication also includes summaries of the information from recent years concerning power generation and utilization in the Nordic countries, the structure of the electricity market from the players' perspective, trade in electricity in the Nordic countries and in northern Europe, electricity prices in the Nordic and other countries, and the impact of the electricity sector on the environment

Electricity market 2000

Energy Technology Data Exchange (ETDEWEB)

Korsfeldt, T.; Petsala, B.

2000-08-01

The electricity markets in the Nordic countries have undergone major changes since the electricity market reform work was started in the early 1990s. Sweden, Norway and Finland have a common electricity market since 1996.The work of also reforming the Danish electricity market was begun in the year 2000. The objective of the electricity market reform is to introduce increased competition,to give the consumers greater freedom of choice and also, by open and expanded trade in electricity, create the conditions for efficient pricing. The Swedish National Energy Administration is the supervisory authority as specified in the Electricity Act, and one of the tasks entrusted to it by the Government is to follow developments on the electricity market and to regularly compile and report current market information. The purpose of the present publication is to meet the need for generalized and readily accessible information on the conditions on the Nordic markets.The publication includes summaries of information from recent years concerning electricity generation and utilization in the Nordic countries, the structure of the electricity market from the players' perspective trade in electricity in the Nordic countries and in Northern Europe, electricity prices in the Nordic and other countries, and the impact of the electricity sector on the environment.

Electricity market 2000

International Nuclear Information System (INIS)

Korsfeldt, T.; Petsala, B.

2000-08-01

The electricity markets in the Nordic countries have undergone major changes since the electricity market reform work was started in the early 1990s. Sweden, Norway and Finland have a common electricity market since 1996.The work of also reforming the Danish electricity market was begun in the year 2000. The objective of the electricity market reform is to introduce increased competition,to give the consumers greater freedom of choice and also, by open and expanded trade in electricity, create the conditions for efficient pricing. The Swedish National Energy Administration is the supervisory authority as specified in the Electricity Act, and one of the tasks entrusted to it by the Government is to follow developments on the electricity market and to regularly compile and report current market information. The purpose of the present publication is to meet the need for generalized and readily accessible information on the conditions on the Nordic markets.The publication includes summaries of information from recent years concerning electricity generation and utilization in the Nordic countries, the structure of the electricity market from the players' perspective trade in electricity in the Nordic countries and in Northern Europe, electricity prices in the Nordic and other countries, and the impact of the electricity sector on the environment

Market design : Common Nordic end-user market

Energy Technology Data Exchange (ETDEWEB)

2009-07-01

No later than 2015, suppliers in the Nordic countries should be able to offer electricity to consumers in any Nordic country on equal terms. In this report NordREG has analyzed the present situation in the Nordic countries and identified the issues that should be harmonised in order to establish a common Nordic end-user market. In this report NordREG also suggests an indicative road map for the implementation process. (Author)

Bidding in sequential electricity markets: The Nordic case

DEFF Research Database (Denmark)

Boomsma, Trine Krogh; Juul, Nina; Fleten, Stein-Erik

2014-01-01

problem as a multi-stage stochastic program. We investigate whether higher risk exposure can explain the hesitation, often observed in practice, to bid into the balancing market, even in cases of higher expected price levels. Furthermore, we quantify the gain from coordinated bidding, and by deriving......For electricity market participants trading in sequential markets with differences in price levels and risk exposure, coordinated bidding is highly relevant. We consider a Nordic power producer who engages in the day-ahead spot market and the near real-time balancing market. In both markets......, clearing prices and dispatched volumes are unknown at the time of bidding. However, in the balancing market, the agent faces an additional risk of not being dispatched. Taking into account the sequential clearing of these markets and the gradual realization of market prices, we formulate the bidding...

Greening of Nordic electricity industry: policy convergence and diversity

International Nuclear Information System (INIS)

Midttun, Atle; Gundersen, Mari Hegg; Koefoed, Anne Louise

2004-01-01

With a comparative focus on policy similarity and diversity, this article gives an overview of the main elements of electricity-related environmental policy in the Nordic countries, following the launching of a common electricity market in the 1990s. The article points out that the electricity related environmental policy positions of the Nordic countries showed a noticeable lack of coordination in the 1990s. Nordic divergence is observed both in terms of general policy orientations and at the instrument and incentive levels, in spite of the pioneering development of a common integrated electricity market and ambitious environmental policy goals. The article then highlights how the recent Swedish 'green' certificate market model has created a new momentum for market-based 'greening' with a potential for stronger convergence in Nordic renewable energy policy. In spite of signs of convergence, the article shows how the development of Nordic electricity-related environmental policy still contains considerable ambiguity: Unequal resource endowments, subject to simple resource-based interest formation, should indicate that there is little room for convergence in Nordic renewable energy policy. Shifting the environmental policy focus from existing technologies and resources to potential innovations, however provides a more open arena where the Nordic countries may see themselves served by the dynamic scope of a broader Nordic market based on a common policy approach, such as a green certificate market. In explaining why the Nordic arena may be an interesting locus for common renewable energy policy, the article points out that small countries may need an 'intermediary' arena to aggregate size and scope in order to generate a European momentum in regulatory competition with larger European states. Similarly, Nordic companies may consider the opportunity to gain first mover advantages by partnering with government as local experimentation may be seen as useful pilot

The Impact of Emissions Trading on the Price of Electricity in Nord Pool : Market Power and Price Determination in the Nordic Electricity Market

OpenAIRE

Oranen, Anna

2006-01-01

The objective of this thesis is to find out how dominant firms in a liberalised electricity market will react when they face an increase in the level of costs due to emissions trading, and how this will effect the price of electricity. The Nordic electricity market is chosen as the setting in which to examine the question, since recent studies on the subject suggest that interaction between electricity markets and emissions trading is very much dependent on conditions specific to each market ...

Applying mathematical finance tools to the competitive Nordic electricity market

International Nuclear Information System (INIS)

Vehvilaeinen, I.

2004-01-01

This thesis models competitive electricity markets using the methods of mathematical finance. Fundamental problems of finance are market price modelling, derivative pricing, and optimal portfolio selection. The same questions arise in competitive electricity markets. The thesis presents an electricity spot price model based on the fundamental stochastic factors that affect electricity prices. The resulting price model has sound economic foundations, is able to explain spot market price movements, and offers a computationally efficient way of simulating spot prices. The thesis shows that the connection between spot prices and electricity forward prices is nontrivial because electricity is a commodity that must be consumed immediately. Consequently, forward prices of different times are based on the supply-demand conditions at those times. This thesis introduces a statistical model that captures the main characteristics of observed forward price movements. The thesis presents the pricing problems relating to the common Nordic electricity derivatives, as well as the pricing relations between electricity derivatives. The special characteristics of electricity make spot electricity market incomplete. The thesis assumes the existence of a risk-neutral martingale measure so that formal pricing results can be obtained. Some concepts introduced in financial markets are directly usable in the electricity markets. The risk management application in this thesis uses a static optimal portfolio selection framework where Monte Carlo simulation provides quantitative results. The application of mathematical finance requires careful consideration of the special characteristics of the electricity markets. Economic theory and reasoning have to be taken into account when constructing financial models in competitive electricity markets. (orig.)

Trading electricity outside the Nordic countries

International Nuclear Information System (INIS)

1994-01-01

The subject of transborder trade of electricity between the Nordic countries and other North-European countries is dealt with. A detailed comparison of generating capacity, generating costs as well as electricity prices, market structure and national and international regulations is given. This shows that generating costs in the Nordic countries in general are lower than those in other North-European countries. This indicates a potential for transborder trade. Norway has a potential for exporting power while Denmark and Sweden have a potential for energy exports due to current excess capacity. Transmission capacity from the Nordic countries to Germany is limited. As access to the German transmission network is restricted, conditions for trade depend on differences between marginal cost. After transmission cost, those differences do not finance larger investments in further capacity. A change in the market structure in Germany with third party access to the transmission network will allow major consumers to buy directly from producers in the Nordic countries. An opening up of the market should reduce the price load in Germany. This could cause price increases in the Nordic countries. (AB)

The role of price elastic demand in market power in the Nordic electricity markets

International Nuclear Information System (INIS)

Ravn, H.F.

2004-01-01

The paper discusses the modelling and analysis of market power and price elastic demand in the Nordic electricity spot market, Nordpool. The modelling of market power in the electricity sector must take into account a number of features that are specific to the electricity sector. First, electricity cannot be stored, but must be produced simultaneously with consumption. This aspect is, however, modified by the possibility of using hydro reservoirs as an indirect electricity storage. Second, the electricity transmission network plays an important role by breaking the market into several geographically separate sub-markets with different prices. Moreover, the specific bottlenecks may differ from hour to hour, according to the balance between supply and demand in each sub-market. Third, the demand side is presently characterised by very limited experience with hour to-hour-changes in electricity prices and very limited experience with short time adjustments of electricity consumption in response to changes in the electricity price. In the present paper three basic models for supply side competition on the Nordpool spot market will be presented, viz., perfect competition, Cournot competition and Supply Function Equilibrium. The models represent price and quantity settlement, including determination of price areas (bottle necks), in accordance with the way the Nordpool market functions. The models will incorporate electricity demand which is responsive to the electricity price. The paper describes the role of demand response for the determination of the electricity prices in each of the three supply side competition models. (au)

Reliability of supply in competitive electricity markets: The Nordic electricity Market

International Nuclear Information System (INIS)

Singh, Balbir

2005-12-01

An overview of the current regulation and performance of the network utilities with respect to the reliability of supply across Europe in general indicates wide variation. On the regional level the situation in the Nordic market is no exception. Can the variation in reliability of supply in Nordic region be explained by differences in regulatory frameworks in the Nordic countries and is it possible to draw any best practice lessons for other countries and regions? The Norwegian regulation and performance with respect to reliability criterion is encouraging, however it must be emphasized that the Norwegian experience with reliability regulation in its current form covers a period of 3 years, a period that is too short to evaluate the Norwegian model. A closer examination of the Norwegian model reveals dynamic trade off in reliability performance, which if permanent may endanger the reliability of supply in the long-run. Last, but not the least important is the criterion that choice of regulation should be based on a careful social cost-benefit analysis of the regulatory model where both cost incurred by the regulatory agencies and the compliance costs incurred by the regulated utilities are included. A preliminary analysis of regulatory agencies in the Nordic market indicates that Norwegian model of network regulation is quite resource incentive. While it is premature to draw conclusions about the national regulatory mechanisms, the Nordic cross border regulation through voluntary arrangements under the auspices of NORDEL provides a good example of an arrangement that is useful when implementation of a formal regulatory regime across different jurisdiction is not possible

Further Development of the Nordic Electricity Market - a Common Solution for Investments in Transmission, Congestion Management and Peak Load Capacity

International Nuclear Information System (INIS)

Granstroem, Per-Olof

2005-06-01

The Nordic market fits well into place as a regional market in the over all European development, and it is therefore necessary to change the perspectives from a national one to a common Nordic approach. Despite the fact that the Nordic market is seen as a success, significant further improvements for customers and society can be made through deeper Nordic integration. The ongoing work on the Nordic electricity market within the Nordic Council of Ministers is therefore very welcomed and the Nordel report 'Enhancing Efficient Functioning of the Nordic Electricity Market' constitutes a good basis material for the further development of the market. There is a need to accelerate the pace of the harmonisation process, by making a clear timetable and prioritisation for the further work. Key issues for the next step are: Harmonisation of the legal framework and hence intensified co-operation among the Nordic governments; Implementation of the five known transmission investments, including a cost-benefit analysis; A more precise definition of the TSO responsibilities and core businesses, including operational reserves a prerequisite for further work on, e.g. the peak load issue; Initiation of cost-benefit analysis concerning future transmission investments; Guaranteed cross border capacity for market players; An analysis on settlement of imbalances and how this is affecting the peak load issue

Liberalisation of electricity market in Finland as a part of Nordic market

International Nuclear Information System (INIS)

Karkkainen, S.; Lakervi, E.

2001-01-01

The Finnish electricity market is a part of the physically interconnected Nordic market which also includes Denmark, Norway and Sweden. All countries are nowadays deregulated in slightly different ways, and the central co-ordination of power generation is replaced with the market based power exchange NordPool. In Finland the deregulation was performed step by step, so that first the customers above 500kW were allowed to change their supplier in November 1995. From January 1997 all customers were free to select their suppliers provided that they had a remotely-read hourly meter. Since November 1, 1998 all small customers (below 3 x 63A, about 45kW) have been able to change their supplier without any extra costs. As a result of competition most of the larger customers have changed their suppliers or negotiated new contracts with their existing supplier. Of the 2.2 million small customers, only about 3% have changed supplier, but the electricity prices for all customers have decreased. (Author)

The European internal market and Nordic energy policy

International Nuclear Information System (INIS)

Grohnheit, P.E.; Hoier Nielsen, H.; Soerensen, H.

1992-01-01

The aim was to attempt to clarify the immediate consequences, and potentials for energy policy, for the authorities and supply companies in the Nordic countries in relation to the establishment of the Single Market. Potentials for the development of coordinated electricity supply and natural gas markets, and for cooperative Nordic research and initiatives are examined. Descriptions of conditions in other lands are given. It is stated that decisions on investments must now be taken within an open capital market with other traditions. There is a need for faster technology transfer. It is concluded that it will be difficult to develope trade related to natural gas between all the Nordic countries, but it should increase (also with regard to electricity) between the Nordic countries and their neighbour countries. Regarding electricity supply, lifting of existing rights of monopoly will result in weaker connections between producer and consumer and supply reliability will decrease. Natural gas supply reliability will be strengthened but producers will shoulder more market risks. Fusions will increase but a greater variation of company types and organization forms will develope. Competition will be sharper and prices for electric power could rise. Nordic energy policy will have a more international character, especially with regard to environmental protection. Long-term investment will be encouraged. The Nordic Council of Ministers will need to concentrate on information dissemination related to energy system analyses as a basis for decision-making. Export of Scandinavian hydroelectric power will contribute to international goals for environmental protection. (AB) (45 refs.)

The futures and forward price differential in the Nordic electricity market

Energy Technology Data Exchange (ETDEWEB)

Wimschulte, Jens [University of Regensburg (Germany)

2010-08-15

This note investigates price differentials between electricity forwards and portfolios of short-term futures with identical delivery periods at the Nordic Power Exchange (Nord Pool). Since both contracts are traded at the same exchange, there is no influence of, for example, different market microstructure and default risk when examining the effect of the marking-to-market of futures on the price differential. Although the prices of the futures portfolios are, on average, below the corresponding forward prices, these price differentials are, on average, not statistically significant and not economically significant when taking transaction costs into account. Given the characteristics of the electricity contracts under observation, this is consistent with the predictions of the model and indicates efficient pricing in the Nord Pool forward market in contrast to previous results. (author)

The futures and forward price differential in the Nordic electricity market

International Nuclear Information System (INIS)

Wimschulte, Jens

2010-01-01

This note investigates price differentials between electricity forwards and portfolios of short-term futures with identical delivery periods at the Nordic Power Exchange (Nord Pool). Since both contracts are traded at the same exchange, there is no influence of, for example, different market microstructure and default risk when examining the effect of the marking-to-market of futures on the price differential. Although the prices of the futures portfolios are, on average, below the corresponding forward prices, these price differentials are, on average, not statistically significant and not economically significant when taking transaction costs into account. Given the characteristics of the electricity contracts under observation, this is consistent with the predictions of the model and indicates efficient pricing in the Nord Pool forward market in contrast to previous results. (author)

Model of Nordic energy market

International Nuclear Information System (INIS)

Gjelsvik, E.; Johnsen, T.; Mysen, H.T.

1992-01-01

Simulation results are given of the consumption of electricity and oil in Denmark, Norway and Sweden based on the demand section of a Nordic energy market model which is in the process of being developed in Oslo under the auspices of the Nordic Council of Ministers. The model incorporates supply, and trade between countries so that it can be analyzed how trading can contribute to goals within energy and environmental policies and to cost effective activities aimed at reducing pollution. The article deals in some detail with the subject of how taxation on carbon dioxide emission can influence pollution abatement and with energy consumption development within individual sectors in individual Northern countries. The model of energy demand is described with emphasis on the individual sectors of industry, transport, service and private households. Simulation results giving the effects of energy consumption and increased taxation on fossil fuels are given. On this background the consequences of the adaption of power plants is discussed and a sketch is given of a Nordic electric power market incorporating trading. (AB) (15 refs.)

Competitive nuclear production on the nordic deregulated electricity market

International Nuclear Information System (INIS)

Bohl, T.

2000-01-01

The Nordic electricity market has been partly deregulated since 1994. Today only Denmark follows the timetable recommended by the European Union, while Sweden, Norway and Finland are completely deregulated. As in most countries, the production of electricity is deregulated while the distribution is still a monopoly. This deregulation of the electricity market has created a new situation for plant life management. In order to be competitive on the market it is important to cut cost down a level when the nuclear power companies earn money again. All means to cut cost have to be used while still maintaining safety and the possibilities for operation over at least 40+ years. The possibilities to invest in modernization are limited to the absolutely necessary modifications. All investments must be very thoroughly questioned and the money can only be spent where most benefit is gained. This means new prerequisites for the absolute necessary long-strategic planning. New safety requirements from the authorities have to be discussed between the industry and the authority. The requirement cost must be compared to the benefit to safety. The authority is today requested to carry out such analyses and do so in most cases. Since the electricity market is international the requirements of the authorities must be harmonized on the whole market. The political threat against nuclear power is serious in many countries and it is important to continue working with public acceptance and lobbying. Especially in Sweden a lot of effort is spent on trying to change the taxation of nuclear power. In the near future increasing electricity demand will make the prices go up to a level when nuclear power companies earn money again. The very serious worries about climate change will also strengthen the competitiveness of nuclear power. (author)

Domestic merger policy in an international oligopoly: the Nordic market for electricity

International Nuclear Information System (INIS)

Soergard, Lars

1997-01-01

Many domestic markets are becoming integrated in international markets. Is this an argument for permitting mergers between domestic producers? It is shown that a merger with no cost-saving effects will always be detrimental to domestic welfare if the country is an importer of the good in question, and may increase welfare if the country is an exporter and the price-cost margin is sufficiently low initially. We specify a general condition for a merger to improve welfare, and apply the condition on the Nordic market for electricity. Numerical calculations suggest that in this particular market the Norwegian competition authority should ban domestic mergers with no cost savings. (Author)

Trading electricity in the Nordic countries

International Nuclear Information System (INIS)

1994-01-01

An open market for electric power in the Nordic countries will require extensive common solutions of a range of economic, technical and political problems as a consequence of the natural monopoly of the transmission and distribution grid, and the need for supply reliability. The main objective is to establish and effective framework for competition in buying and selling electricity, both nationally and in a Nordic context, and to secure optimal resource allocation. The key participants are owners of the high-voltage grid and of the international grid connections. The objective should be to develop a 'point-tariff' system, a system for effective handling of bottlenecks, and an optimisation of further developments in the common high-voltage grid. Effective routines for measurement of the trade across the borders should be established. Institutions for power-trading should be developed, such as organised spot markets which should be established in Sweden and Finland. Transaction costs for trade between the spot markets in the different countries should be low. Until spot markets are established in Sweden and Finland, Statnett Marked should be made available for Sweden and Finish consumers and producers. Abuse of a domimant market position in a common market should be firmly discouraged. Different competition policies in the Nordic countries may give participants unequal possibilities to compete. (AB)

Impact of Germany's energy transition on the Nordic power market – A market-based multi-region energy system model

International Nuclear Information System (INIS)

Zakeri, Behnam; Virasjoki, Vilma; Syri, Sanna; Connolly, David; Mathiesen, Brian V.; Welsch, Manuel

2016-01-01

The EU energy policy aims at creating a single European electricity market through market couplings and grid expansions. To analyse the implications of such power market couplings, we propose a market-based multi-region energy system model. The model simulates a multi-region power market (by applying market optimization and network theory), with detailed representation of each region as an energy system (by simulation of both heat and power sectors). We examine the impact of further integration of variable renewable energy (VRE) in Germany on the Nordic power market. The results indicate that the average electricity price slightly grows in the Nordic power market after Germany's Energy Transition (Energiewende). Hence, the economic surplus of Nordic consumers diminishes while Nordic producers improve their gain under new market conditions. Considering the gird congestion income, the overall system-level benefits (social welfare) will improve in the Nordic region after Germany's Energiewende. However, this gain is not equally distributed among different Nordic countries and across different stakeholders. Furthermore, the Energiewende slightly increases carbon emissions from power and district heating (DH) sectors, and reduces the flexibility in integration of VRE in some Nordic countries like Denmark. The direct interconnection of Norway and Germany through NordLink will contribute to the flexibility in wind integration in other Nordic countries, such as Denmark and Finland. - Highlights: • By an integrated hourly analysis, we model the energy systems of several networked countries and their common electricity market. • The proposed model can inform energy policy on implications of renewable energy integration in an international power market. • Among Nordic countries, Norway gains the highest economic benefits from Germany's energy transition. • Germany's energy transition constrains the flexibility of the Nordic countries in wind integration. • Nord

Green certificates and market power in the Nordic power market

DEFF Research Database (Denmark)

Amundsen, Eirik S; Bergman, Lars

2012-01-01

principles and a numerical model based on that to investigate the Swedish TGC market operating in a setting of a common Nordic electricity market. The analysis shows that Swedish producers may exercise market power using the TGC-market but that this problem will be eliminated by opening the TGC-market......The purpose of this study is to elucidate under which circumstances, how, and to what extent market power on a Tradable Green Certificates (TGC) market can be used to affect an entire electricity market. There are basically two reasons for being concerned with this. One is that a small number...

Regulatory barriers for activating flexibility in the Nordic-Baltic electricity market

DEFF Research Database (Denmark)

Bergaentzlé, Claire; Skytte, Klaus; Soysal, Emilie Rosenlund

2017-01-01

to flexibility. We find that the most restrictive barriers against flexibility are emitted by public authorities as part of broader policy strategies. Overall, we find that current regulatory and market framework conditions do not hinder flexibility. However, despite that, flexibility remains limited due......, load adjustment or to a greater coupling to other energy sectors. In this paper, we identify the framework conditions that influence the provision of VRE-friendly flexibility in the Nordic and Baltic electricity sector, i.e., the market and regulatory settings that act as drivers or barriers...... to a lack of coherent instruments intended to both the demand and supply-side to effectively act flexibly....

Power system economics : the Nordic electricity market. 2nd ed.

International Nuclear Information System (INIS)

Wangensteen, Ivar

2012-01-01

This book written as a textbook for students of engineering is designed for the Norwegian Power Markets course which is part of the Energy and Environment Master's Program and the recently established international MSc program in Electric Power Engineering. As the title indicates, the book deals with both power system economics in general and the practical implementation and experience from the Nordic market. Areas of coverage include: -- Restructuring/deregulation of the power supply system -- Grid access including tariffs and congestion management -- Generation planning -- Market modeling -- Ancillary services -- Regulation of grid monopolies. Although Power Systems Economics is written primarily as a textbook for students, other readers will also find the book interesting. It deals with problems that have been subject of considerable attention in the power sector for some years and it addresses issues that are still relevant and important. (au)

Power system economics : the Nordic electricity market. 2nd ed.

Energy Technology Data Exchange (ETDEWEB)

Wangensteen, Ivar

2012-07-01

This book written as a textbook for students of engineering is designed for the Norwegian Power Markets course which is part of the Energy and Environment Master's Program and the recently established international MSc program in Electric Power Engineering. As the title indicates, the book deals with both power system economics in general and the practical implementation and experience from the Nordic market. Areas of coverage include: -- Restructuring/deregulation of the power supply system -- Grid access including tariffs and congestion management -- Generation planning -- Market modeling -- Ancillary services -- Regulation of grid monopolies. Although Power Systems Economics is written primarily as a textbook for students, other readers will also find the book interesting. It deals with problems that have been subject of considerable attention in the power sector for some years and it addresses issues that are still relevant and important. (au)

District heating as a source of flexibility in the Nordic electricity market

DEFF Research Database (Denmark)

Skytte, Klaus; Sneum, Daniel Møller; Sandberg, Eli

2016-01-01

to come in order to reach the ambitious renewable energy deployment targets in the Nordic and Baltic countries. Transformation to an energy system increasingly based on VRE will escalate the requirement for flexible operation of the entire energy system, including improved integration among energy sectors...... compared to the electricity market, e.g. different energy taxes, which may hinder the potential benefits from systems integration and lower the realisable potentials....

Trading with electric power in the Nordic countries

International Nuclear Information System (INIS)

1992-01-01

During recent years Nordic cooperation has contributed to a greater integration of the Nordic electric power markets. This has been based on trade on a short-term basis. As a part of increased integration in Europe and the demand for more effective administration of Nordic energy resources, trade with electric power has become more significant. At the same time environmental challenges have lead to an increase in Nordic and European cooperation, also within the energy sector. The aim of the seminar held in Hankoe, Norway, on June 9-11, 1992 was to discuss the problems within this field. Both theoretical and practical aspects were dealt with and developments in Europe and environmental issues were in focus. The lectures given at the seminar are included in this publication. (AB)

Electricity disclosure in the Nordic countries. Prestudy focussing on the customer perspective

International Nuclear Information System (INIS)

Gode, Jenny; Axelsson, Ulrik

2007-04-01

Electricity disclosure is required by the EU Directive concerning the internal market in electricity. According to the directive electricity suppliers shall make available to final customers the contribution of each energy source to the overall fuel mix and at least reference to existing sources where information on CO 2 emissions and the radioactive waste resulting from the electricity produced can be found. The information shall be reliable. The systems for electricity disclosure implemented or planned to be implemented differs among the Nordic countries and some countries currently apply some kind of transitional solutions. The systems applied at present cannot be easily combined, but extensive changes would only be needed in the Finnish system. Regulations for the Swedish system are also needed. Multiple counting (counting of e.g. environmental attributes more than once) occurs in all Nordic systems and at Nordic level as well. The Finnish system does not make corrections of environmental attributes from the electricity mix; Sweden and Norway currently apply transitional preliminary systems where the risk of multiple counting is obvious and Denmark does not yet fully apply the rules set up in their implemented system. However, in Sweden, Norway and Denmark it is likely that reliable systems will be implemented and applied - presumed that regulations for the Swedish system will be implemented according to previous plans. Multiple counting at Nordic level is a result of partly national multiple counting and partly due to application of different tracking systems, rules for import and export of electricity and attributes as well as rules and basis for correction of the residual (a residual is not at all used in Finland). Ten business customers have been interviewed regarding their opinions, requirements and desires with respect to electricity disclosure, but a clear picture has not emerged from these interviews. Several customers pay extra for some kind of green

A system dynamics analysis of the Nordic electricity market: The transition from fossil fuelled toward a renewable supply within a liberalized electricity market

Energy Technology Data Exchange (ETDEWEB)

Vogstad, Klaus-Ole

2005-07-01

A system dynamic model to analyze long-term versus short-term implications of various energy policies within the context of the Nordic electricity market has been developed. The model itself provides a theory of the development of the Nordic electricity market in response to various energy policies, both in the long and the short term. The model includes generation scheduling, demand, price formation, investment decisions, resource availability and to some extent technology progress as endogenous. Thus, explanations of the model behaviour can be found from within the model. As examples of use, the model/modelling concept addresses two important questions on the energy policy agenda. First the marginal C02-emission controversy has been study, whether building gas power in Norway increase or reduce Nordic C02-emissions. The results were that in the short run, some emission reductions can be obtained due to substitution of existing coal units by operations of the market, but this effect was found to be modest. Existing gas power is also substituted, plus some bio. In the long run, there are also some investment substitutions of renewables. These effects do not appear to be significant in the short run, but in the long run, the investment rate of renewables is reduced as a consequence of reduced prices from gas. The reduced investments in renewables results in increased emissions. Some increase in demand is also to be expected from adding gas power, due to price-elasticity of demand. The net result is that gas power is likely to increase C02-emissions, which contradicts the current belief as well as results from other electricity market models that omit the long-term mechanisms such as investment decisions and technology progress. The second study analyzed the current Swedish TGC market at the time of the introduction. The purpose was to assist market design. It was found that the current Swedish TGC market design is likely to crash, due to the slow adjustment of the

A system dynamics analysis of the Nordic electricity market: The transition from fossil fuelled toward a renewable supply within a liberalized electricity market

International Nuclear Information System (INIS)

Vogstad, Klaus-Ole

2005-01-01

A system dynamic model to analyze long-term versus short-term implications of various energy policies within the context of the Nordic electricity market has been developed. The model itself provides a theory of the development of the Nordic electricity market in response to various energy policies, both in the long and the short term. The model includes generation scheduling, demand, price formation, investment decisions, resource availability and to some extent technology progress as endogenous. Thus, explanations of the model behaviour can be found from within the model. As examples of use, the model/modelling concept addresses two important questions on the energy policy agenda. First the marginal C02-emission controversy has been study, whether building gas power in Norway increase or reduce Nordic C02-emissions. The results were that in the short run, some emission reductions can be obtained due to substitution of existing coal units by operations of the market, but this effect was found to be modest. Existing gas power is also substituted, plus some bio. In the long run, there are also some investment substitutions of renewables. These effects do not appear to be significant in the short run, but in the long run, the investment rate of renewables is reduced as a consequence of reduced prices from gas. The reduced investments in renewables results in increased emissions. Some increase in demand is also to be expected from adding gas power, due to price-elasticity of demand. The net result is that gas power is likely to increase C02-emissions, which contradicts the current belief as well as results from other electricity market models that omit the long-term mechanisms such as investment decisions and technology progress. The second study analyzed the current Swedish TGC market at the time of the introduction. The purpose was to assist market design. It was found that the current Swedish TGC market design is likely to crash, due to the slow adjustment of the

The existing Nordic regulating power market. FlexPower WP1 - Report 1

Energy Technology Data Exchange (ETDEWEB)

Bang, C.; Fock, F.; Togeby, M.

2011-06-15

The FlexPower project investigates the possibility of using broadcasted dynamic electricity prices as a simple and low cost means to activating a large number of flexible small-scale power units. The aim is to provide regulating power via an aggregated response from the numerous units on a volunteer basis. The report provides a brief historical and contextual background of the Nordic electricity market. Thereafter it goes into greater detail describing the Nordic regulating power market, both how it functions in practice, and examining some of the historical trends from a Danish perspective. (LN)

Road map towards a common harmonised Nordic end-user market. NordREG report 5 - 2013

Energy Technology Data Exchange (ETDEWEB)

NONE

2013-07-01

The purpose of this road map is to describe the overall process to harmonise the Nordic electricity end-user markets. The main target groups for the road map are the Nordic governments, legislators and the electricity industry. The road map will continuously be updated as the project progresses, at least once a year. It describes the recommendations already made by NordREG, as well as indicates up-coming recommendations. One important part of the Nordic harmonisation process is the monitoring of the progress of the project. It will be communicated through national implementation monitoring overviews, which will describe the state of play for each recommendation made by NordREG. The road map highlights the importance of national commitment by different stakeholders, authorities and governments in order to successfully harmonise the Nordic end-user markets. This commitment is absolutely essential. The goal for 2015 is to harmonise some of the legislation, rules and processes that constitute barriers for suppliers to establish their business in other Nordic countries. In order to achieve this goal, NordREG is working towards defining responsibilities in the customer interface of the supplier centric model and the way of billing the customers. Another important task is related to development of an efficient way of communication among a large number of Nordic electricity companies. By 2015 the end-user markets should be harmonised to the extent that the most critical prerequisites have been achieved. But it is important to bear in mind that there are still many more steps to be taken also after 2015. The harmonisation process between the Nordic retail markets is a process that will continue for the foreseeable future. Since there is no supranational organisation or institution (like in the EU), it means that any future development of the Nordic retail market will have to be continuously coordinated between the Nordic countries to ensure that the markets maintain the

Legal analysis of contract models in a common Nordic electricity retail market

Energy Technology Data Exchange (ETDEWEB)

Bjoerneby, Henrik; Alvik, Ivar

2012-07-01

The main objective of this study is to consider the legal advantages and disadvantages with different contract models given NordREG's choice of a supplier centric model with mandatory combined billing in a future Nordic end-user market for electricity.At the outset, there are today three relevant categories of agreements in place between customers, suppliers and DSOs in the Nordic electricity retail markets: the electricity supply agreements between customers and suppliers, the grid use agreements between customers and DSOs, and the grid connection agreements usually entered into between customers and DSOs. We have assumed that issues governed by the grid connection agreements will still be entered into by DSOs under a supplier centric model. Two general contract models have on this basis been considered as possible approaches to regulation of electricity supply and grid use terms under a future supplier centric model. The subcontractor model is considered in more detail in chapter 7 of this report. Under this model, the customer enters into a contract with the supplier governing both electricity supply and grid use. The supplier then enters into a separate contract with the DSO for grid use, making the DSO a subcontractor for this service. The Danish wholesale model which will be implemented from 1 October 2014 represents one example of a subcontractor model.The main advantage of the subcontractor model is that it will entitle the customer to envisage the electricity supply, including grid services, as a single service delivered by the supplier. On the other hand, the sub-contractor model will extend the responsibilities of suppliers towards customers. We discuss the advantages and disadvantages of this model further in section 7.2. The power of attorney model is considered in more detail in chapter 8 of this report. Under this model, the customer and the DSO will still formally be contract parties to the grid use agreement, but the supplier will act with a

Electricity and emission allowance markets from Finnish viewpoint. Study

International Nuclear Information System (INIS)

Kara, M.

2006-05-01

During 1995.2005 the Nordic energy system has experienced two major changes, the opening of the electricity market for competition and emissions trading within the EU. The European Union's emissions trading scheme (EU ETS) that began operating at the beginning of 2005 has weakened the competitiveness of Finnish electricity production and raised electricity prices. Most electricity producers have accumulated large profits thanks to higher prices. The payers have been nearly all electricity users. This report studies the effects of emissions trading on the electricity market and the functionality of the power market. Very little investment has been made in power production capacity in the Nordic countries over the past ten years. Considerable increases have mainly been made in Danish wind power capacity. Simultaneously, the total consumption of electricity and maximum system load have increased more than installed capacity has grown. In the next few years the power and energy balances may be threatened. In previous years, Finland has often been separated as its own market price area on the Nordic power exchange. The formation of price areas has been affected by the limited capacity in transmission interconnectors, network reparation work and the operating method of the Swedish national system operator, Svenska Kraftnaet (transferring domestic bottlenecks to the borders). This study reviews the scale of price differences and the effect on market activities. On the common Nordic electricity market, Finnish coal and peat condensing power capacity is mainly used during poor precipitation years. These plants were once built for base load production. Carbon dioxide emissions trading has further weakened the competitiveness of these plants. The biggest problem for the Nordic power exchange, Nord Pool, is regarded to be that market concentration in electricity production is high. Market concentration decreases the investment willingness of existing players as new power

Implementation Plan for a Common Nordic Retail Market

Energy Technology Data Exchange (ETDEWEB)

2010-09-15

For several years NordREG has been working to promote and facilitate a common Nordic end user market. Given the political support that was expressed at the meeting of the Nordic energy ministers in the autumn of 2009, the work has become even more concrete. With this implementation plan, NordREG outlines what should be done, by whom and when in order to create a common Nordic end user market over the coming years. As the plan shows the need for contributed efforts from all stakeholders will be vital in the coming years in order to make a reality of the plans of creating a common Nordic end user market. The transition from national retail markets to a single Nordic market will take a great deal of work from regulators, DSOs, suppliers and TSOs. The benefits that a single Nordic end user market will bring will however make it worthwhile. In the long run, the integrated Nordic end user market will be a more efficient solution than keeping the four national markets. This is also a step towards the integration of European markets. The process of creating a single Nordic market also brings a unique opportunity to find new efficient solutions on different issues. Hence, the goal is not only to integrate the Nordic end user markets, but rather to develop a more customer oriented market with a high degree of competition between the suppliers

The electricity market 2002

Energy Technology Data Exchange (ETDEWEB)

NONE

2002-10-01

The purpose of the 'Electricity market 2002' publication is to meet the need for generalized and readily accessible information on the conditions on the Nordic market. Iceland is not included in the description. The publication also includes summaries of information from recent years concerning electricity generation and utilization in the Nordic countries, the structure of the electricity market from the players' perspective, trade in electricity in the Nordic countries and in Northern Europe, electricity prices in the Nordic and other countries, and the impact of the electricity sector on the environment. The publication contains data on electricity generation and use during the past years, structure of the electricity market, trade in electricity in the Nordic countries and northern Europe, electricity prices in the Nordic countries and other countries as well as impact of electricity generation system on the environment. The market price of electricity is affected by a number of factors, including fuel prices, availability of water, and the power and energy balances of the various countries. The availability of water in Norway and Sweden has been very good in recent years, which has had a major influence on the price. 1996 was a dry year, which led to a high system price on Nord Pool. The price of electricity then dropped and has remained at a relatively low level up to the year 2001. The price of electricity rose during the spring of 2001 and remained at a higher level also during the summer months. The main reason was that the availability of water was lower than normal in Norway during the early part of the year. This created a higher demand for imported electricity in Norway and caused some apprehension that the year would be dry. The total price of electricity to the end users has not followed the system price development. The total cost of electricity to the end consumers consists of three items, i.e. the price of electricity, the network

Challenges for Nordic power; How to handle the renewable electricity surplus

Energy Technology Data Exchange (ETDEWEB)

2010-11-15

Almost two years after the EU Commission put forth the EUs 202020 Climate and Energy policy package, it is clear that the Nordic region may face investment in new renewable generation at levels that are unprecedented since the deregulation of the Nordic electricity market. This report explores the linkages between political choices and market dynamics on the basis of four scenarios for the Nordic Power Sector towards 2020 and 2030. The aim is to contribute to a common understanding of the market challenges and dynamics among different stakeholders: How do different policy and market drivers interact? What are the long-term implications for prices and the energy balance? And ultimately, what policy choices are available when it comes to handling the expected increase in renewable generation and the looming Nordic energy surplus. Econ Poeyry and THEMA Consulting Group have invited companies, industry organizations and government agencies to participate in the process to elaborate on the issues mentioned above. The participants have contributed through workshops, working groups and conferences. (Author)

A novel approach to electricity market education

International Nuclear Information System (INIS)

Karjalainen, R.; Viljainen, S.; Partanen, J.

2007-01-01

The special characteristics of the competitive Nordic electricity markets were discussed with particular references to the challenges of operating an open power market. Electricity prices in Norway are highly volatile and difficult to estimate because the demand for electricity depends highly on temperature, while the supply of electricity is influenced by water reservoir levels and the price of carbon dioxide allowances. An innovative approach to power engineering education was proposed in an effort to provide power engineering students at Lappeenranta University of Technology (LUT) with skills that are needed for open electricity markets. In addition to the basic power engineering skills, these include an understand of risk management, financing, sales and marketing. The approach was based on developing theoretical and practical teaching methods that are applied in power engineering education at LUT. The practical learning methods played a key role in the development of a Power Exchange Game which was based on the operation of the Nordic power exchange Nord Pool. During the game, student teams used their knowledge and acted as portfolio managers of electric utilities where they analyzed and made decisions regarding the operation in the Nordic electricity market. Upon completion of the game, students were expected analyze their own performance in a final report. Most of the students considered the course an effective and interesting way to study the operation of electricity markets. 9 refs., 1 tab., 9 figs

Optimal utilization of electric power in the Nordic countries

International Nuclear Information System (INIS)

Magnusson, G.; Gjelsvik, E.

1992-01-01

It is attempted to address the questions of which advantages the equilibrium solution would have for the energy market under free trade conditions, how Nordic electric power can be used optimally and what the trading pattern looks like, which kind of competition the transmission of electricity via cables to Iceland and other Nordic countries will meet in the United Kingdom (UK) and the Continent, how high the option values are of trading with electric power via cables from, for example, Iceland to the UK and how great the profit could be from a more effective use of electricity for aluminium production in Norway and Iceland. Data are given on consumer prices for 1990 in Scandinavia, Germany and the UK, and a few graphs and a map illustrate the text. (AB)

New nuclear power plants and the electricity market competition

International Nuclear Information System (INIS)

Ruska, M.; Koreneff, G.

2009-11-01

The study assesses the effects the different nuclear power plant projects would have on crossownership, market concentration and market power in electricity market. The analyses are given both for Finnish and Nordic power markets. The authors feel that the electricity market should primarily be viewed as a common Nordic market in the future. During 2000 to 2008 the hours when Finland was an own price area ranged from 1 % to 29 % as annual averages. In the future it will be more and more seldom that Finland will become an own deficit price area, because the cross-border transmission capacity to Sweden will increase as will Finnish electricity production capacity. In addition, the extension of Nord Pool to the Baltic will increase the size of the market. The ownership of power plants is typically organized through power share companies in Finland. Two of the three nuclear power plant projects are joint ventures with several electricity producers and consumers. The current ownership relations and what effects the new projects might have on them were analyzed in this study. The competitiveness of different electricity production forms in the future was assessed using different market scenarios based on varying demand expectations. The capacity structure was assumed to stay quite unchanged, where the biggest change is expected to come from new renewable power capacity due to EU targets. Conventional condensing power production will decrease and Nordic electricity exports will increase in the future. The market concentration would increase in Finland with new nuclear plants, the most if Fortum were the builder. Vattenfall has a decidedly larger electricity production in the Nordic countries than Fortum, and Vattenfall's capacity would be unchanged by the new planned nuclear plants. The nuclear power plant projects do not therefore increase market concentration significantly on a Nordic level. Nuclear power is not used for day or hour regulation in Finland, which means

Investments and price formation in a liberalized electric power market. Appendices

International Nuclear Information System (INIS)

Morthorst, P.E.

2005-06-01

How will the electric power prices in the Nordic electric power market develop if the generation capacity in the coming 10 to 15 years is increased considerably? And what are the conditions for investors to initiate new investments in power plants? Briefly speaking - these are the issues for the project that is reported in this report. The basis for the project has been the Nordic electric power market model and its capability to handle the future extension of the necessary generating capacity. The main issue in the project has been a quantitative analysis of what the prices in the Nordic electric power market will be in the future, depending on the size of new investments in the power generating capacity. The appendix volume of the project report contains detailed descriptions of the three models that are used: the Balmorel model, the investment model, and the MARS model. The Balmorel model is a partial equilibrium model that describes a coherent, international electric power system and combined heat and power system. The model was developed in 2000 through international co-operation with the aim to have a model for analysing international aspects in the Baltic area. The investment model analyses and models the investment decisions in a liberalized Nordic electric power market. It is an exogenous model constructed outside the Balmorel model but uses the price pictures from the Balmorel model as input. MARS (MARket Simulation) is Eltra's (a Danish electric power transmission company) market model for simulating prices, production, demand and exchanges in the power market. The model covers the Nordic countries (Nord Pool) and Northern Germany. (LN)

The electricity market 2002

International Nuclear Information System (INIS)

2002-01-01

The purpose of the 'Electricity market 2002' publication is to meet the need for generalized and readily accessible information on the conditions on the Nordic market. Iceland is not included in the description. The publication also includes summaries of information from recent years concerning electricity generation and utilization in the Nordic countries, the structure of the electricity market from the players' perspective, trade in electricity in the Nordic countries and in Northern Europe, electricity prices in the Nordic and other countries, and the impact of the electricity sector on the environment. The publication contains data on electricity generation and use during the past years, structure of the electricity market, trade in electricity in the Nordic countries and northern Europe, electricity prices in the Nordic countries and other countries as well as impact of electricity generation system on the environment. The market price of electricity is affected by a number of factors, including fuel prices, availability of water, and the power and energy balances of the various countries. The availability of water in Norway and Sweden has been very good in recent years, which has had a major influence on the price. 1996 was a dry year, which led to a high system price on Nord Pool. The price of electricity then dropped and has remained at a relatively low level up to the year 2001. The price of electricity rose during the spring of 2001 and remained at a higher level also during the summer months. The main reason was that the availability of water was lower than normal in Norway during the early part of the year. This created a higher demand for imported electricity in Norway and caused some apprehension that the year would be dry. The total price of electricity to the end users has not followed the system price development. The total cost of electricity to the end consumers consists of three items, i.e. the price of electricity, the network charges and

The impacts of EU CO2 emissions trading on electricity markets and electricity consumers in Finland

International Nuclear Information System (INIS)

Kara, M.; Syri, S.; Lehtilae, A.; Helynen, S.; Kekkonen, V.; Ruska, M.; Forsstroem, J.

2008-01-01

In this paper, the likely impacts of the EU emission trading system on the Nordic electricity market and on the position of various market actors are assessed. In its first phase, the EU CO 2 emission trading system includes power plants with thermal capacity greater than 20 MW, metals industry, pulp and paper industry, mineral industry and oil refineries. This paper describes the assessment done for the Finnish Minister of Trade and Industry, analysing the likely impacts on power plant operators, on energy-intensive industries, on other industries and on other consumer groups. The impacts of emissions trading were studied with the VTT electricity market model and with the TIMES energy system model. The annual average electricity price was found to rise 0.74 EUR MW h -1 for every 1 Euro tonne CO 2 -1 in the Nordic area. Large windfall profits were estimated to incur to electricity producers in the Nordic electricity market. In Finland, metals industry and private consumers were estimated to be most affected by the electricity market price increases. Expanded nuclear power generation could limit the increases in the prices of electricity to one-third compared to those in the base case

Green Certificates and Market Power on the Nordic Power Market

International Nuclear Information System (INIS)

Bergman, Lars; Amundsen, Eirik S

2007-06-01

the power industry. Moreover, by having access to a large share of the best sites for generation of 'green' electricity a 'small' power producer may be able to exercise market power in the electricity market by exercising market power in the TGC market. In order to elucidate the interplay between the electricity and TGC markets a simple analytical model is presented. Then a numerical version of the model, depicting the Nordic electricity market and the Norwegian-Swedish market for TGCs is used to quantify the impact of TGC market power under various assumptions about the distribution of the essential resources for 'green' electricity production.

Optimal planning of the Nordic transmission system with 100% electric vehicle penetration of passenger cars by 2050

International Nuclear Information System (INIS)

Graabak, Ingeborg; Wu, Qiuwei; Warland, Leif; Liu, Zhaoxi

2016-01-01

This paper presents the optimal planning of the Nordic backbone transmission system with 100% electric vehicle penetration of passenger cars by 2050. Electric vehicles will play an important role in the future energy systems and can reduce the greenhouse gas emission from the transport sector. However, the electric vehicles will increase the electricity consumption and might induce congestions in the transmission systems. In order to deal with the electricity consumption increase from the electric vehicle integration into the power system and maximize the social welfare, the optimal investments of the Nordic transmission system are studied. Case studies were conducted using the market simulation model EMPS (Efi's multi-area power market simulator) and two electric vehicle charging scenarios: a spot price based scenario and a dumb charging scenario. The electric vehicle charging power is assumed to be 3.68 kW with 1 phase 16 A. The complete electrification of the private passenger fleet increases the yearly power demand in the Nordic region with ca 7.5%. The profitable increases in transmission capacities are highest for dumb charging, but are very low for both dumb and spot price based charging compared to a Reference case. - Highlights: • The electric vehicle distribution is done using population and car statistics. • The 100% penetration electric vehicle demand is obtained for Nordic countries. • The optimal investments in the Nordic transmission system with electric vehicles are studied.

The Nordic electric power market. A study of the market characteristics, price factors and the competitive environment of the Nordic power market

International Nuclear Information System (INIS)

Keskikallio, J.; Lindholm, J.

2003-06-01

The market price of power depends on the balance between energy supply and demand. This balance depends on several external factors: the hydrological situation, temperature, time, fuel prices and exchange rates, transmission capacity and congestion, business cycles, other weather-related factors (wind, sun etc.) There are interdependencies between the factors, but the greatest price effects are caused by changes in the hydrological situation (affects energy supply) and temperature (affects mainly demand). Transmission capacity is normally sufficient, especially between Sweden and Finland. When congestion occurs, the price effects may be drastic, due to differences between the countries in the energy production mix. Price areas with several other bordering price areas (Oslo) have the lowest price level. The Helsinki area has the highest price level over time. Congestion is more frequent between southern Sweden and Norway, which accounts for a major part of the difference between the Helsinki area price and the system price. Market concentration is very high in separate price areas, but only moderate for the Nordic market as a whole. Congestion automatically leads to a highly concentrated sub-market. Further market concentration should be avoided, and congestion management should be improved in order to ensure a functioning market. Our findings also included the fact that although power producers have increased their profits since the deregulation of the market, there were no conclusive evidence of market power abuse. A continued trend toward higher profits may change the situation in the future, as the possibility to take advantage of market power already exists. Transmission System Operators (TSO's) have a crucial role for ensuring a functioning power market. As the actions of the TSO may have adverse effects, they should be continuously monitored and subject to much tighter scrutiny than 'ordinary' energy companies. Issues have arisen from the TSO's trading of

Work Programme 2010. Nordic Energy Regulators (NordREG)

Energy Technology Data Exchange (ETDEWEB)

2010-02-15

The Nordic regulators' cooperation through NordREG is based on a strong consensus and common understanding of the Nordic market. Through mutual efforts and contributions NordREG members identify areas of work that can create added value for the Nordic electricity market. NordREG works by exchanging information and views, mapping and analysing energy market issues and by delivering statements and reports for harmonisation and improvement. In this, the regulators aim at identifying areas where NordREG can take joint action to influence Nordic or European electricity market development. NordREGs key focus in 2010 is the work towards a common Nordic retail market and the emphasis is on promoting a legal and institutional framework that supports this goal

Implementation Plan for a Common Nordic Retail Market. Evaluation of the responses on the public consultation

Energy Technology Data Exchange (ETDEWEB)

2010-09-15

Draft implementation plan for a common Nordic Retail Market was developed in close cooperation with relevant stakeholders in the Nordic electricity market during winter and spring 2010. The implementation plan outlines what should be done, by whom and when in order to create a common Nordic end user market over the coming years. NordREG organised a public consultation on the draft implementation plan from the end of June until the beginning of the August, 2010 and received 25 responses from stakeholders. This evaluation report includes summary of stakeholders' responses and NordREG comments on stakeholders' views. The evaluation of the responses has been taken into account during the finalization of the implementation plan

Integration of multiple national markets for electricity: The case of Norway and Sweden

International Nuclear Information System (INIS)

Amundsen, Eirik S.

2007-01-01

During the second part of the 1990s the Nordic (Denmark, Finland, Norway and Sweden) countries have created a unique multinational market for electricity. This paper aims to analyse the degree of integration of the different national markets that constitute the Nordic electricity market. In particular the Norwegian and Swedish wholesale and retail electricity markets are analysed. The results suggest that the wholesale markets are well integrated. Thus prices differ significantly only during periods with unusually high or low supply of hydropower. However, the retail markets are not integrated to the same degree. Thus retail prices and trade margins differ significantly. Differences in the national electricity market legislation seem to be a key factor behind these differences. (author)

Market structure and the stability and volatility of electricity prices

International Nuclear Information System (INIS)

Bask, Mikael; Widerberg, Anna

2009-01-01

By using a novel approach in this paper, (λ,σ 2 )-analysis, we have found that electricity prices most of the time have increased in stability and decreased in volatility when the Nordic power market has expanded and the degree of competition has increased. That electricity prices at Nord Pool have been generated by a stochastic dynamic system that most often has become more stable during the step-wise integration of the Nordic power market means that this market is less sensitive to shocks after the integration process than it was before this process. This is good news

Hedging local volume risk using forward markets: Nordic case

DEFF Research Database (Denmark)

Ernstsen, Rune Ramsdal; Boomsma, Trine Krogh; Tegner, Martin

2017-01-01

With focus on the Nordic electricity market, this paper develops hedging strategies for an electricity distributor who manages price and volume risk from fixed price agreements on stochastic electricity load. Whereas the distributor trades in the spot market at area prices, the financial contracts......, and we suggest various strategies for hedging in the presence of local volume risk. We benchmark against a strategy that ignores correlation and hedges at expected load, as is common practice in the industry. Using data from 2013 and 2014 for two Danish bidding areas, we show that our best hedging...... strategy reduces gross loss by 5.8% and 13.6% and increases gross profit by 3.8% and 9.5%, respectively. Although this is partly due to the inclusion of correlation, we show that performance improvement is mainly driven by the choice of risk measure....

Applying mathematical finance tools to the competitive Nordic electricity market

OpenAIRE

Vehviläinen, Iivo

2004-01-01

This thesis models competitive electricity markets using the methods of mathematical finance. Fundamental problems of finance are market price modelling, derivative pricing, and optimal portfolio selection. The same questions arise in competitive electricity markets. The thesis presents an electricity spot price model based on the fundamental stochastic factors that affect electricity prices. The resulting price model has sound economic foundations, is able to explain spot market price mo...

Functioning of the Finnish electricity wholesale markets; Saehkoen tukkumarkkinan toimivuus Suomessa

Energy Technology Data Exchange (ETDEWEB)

Vehvilainen, I.; Broeckl, M.; Hakala, L.; Vanhanen, J.

2012-12-15

The purpose of common Nordic electricity market has been to increase competition and efficiency. Market seems to be moving to the opposite direction in the 2010s. Wholesale market has become more fragmented as the market is split to larger number of price areas more often. Poor functioning of the wholesale markets is also the largest contributor to problems in the retail market. Politicians, market regulators, transmission system operators, and market players need to take action to improve the functioning of the market. Separation of price areas reduces competition in all market areas. The Finnish wholesale market is moderately or highly concentrated when Finland is separated from other price areas. Concentration is moderate, if all production capacity is considered. If only price setting hydropower and condensing power capacity are considered, the market is highly concentrated. High concentration can provide opportunities for the biggest producers to use strategic bidding to increase market prices. Larger number of price areas has reduced competition and liquidity with the financial area price products or CfDs. Poor functioning of CfD markets is emphasized by the low competition within the price areas. Bottlenecks between market areas create income for the Transmission System Operators (TSOs) that are responsible of the border transmissions. TSOs have no economic incentives to maintain and repair the border transmission lines, which seems peculiar when compared to e.g. regulation of electricity distribution companies. Finnish Fingrid shows a good example on transparent disclosure of received income and how the accrued funds are used. Import of electricity from Russia to Finland has been reduced since the end of 2011 because of the changes made in the Russian electricity market. Market liberalization in Russia has lead to a market structure that is different from the Nordic markets. Despite the differences, the two markets are becoming more integrated as the

Coordination of Nordic system operators in the electric power market - profit from improved capacity utilization and a more flexible division into price zones

International Nuclear Information System (INIS)

Bjoerndal, Mette; Joernsten, Kurt

2001-08-01

This report evaluates the possible profits of establishing a common system operator function in the Nordic electric power market. The main focus is placed on how to deal with congestion in the transmission grid. To estimate possible profits from a better utilization of the resources in the Nordic grid, the authors have analyzed socio-economic profits for several load scenarios. A simplified model of the Nordic stock area was used in the calculations. The existence of two methods of dealing with congestion in the grid may lead to reduced capacity utilization and to greater price differences than necessary. The examples show that ''indirect'' congestion control may be very expensive and that considerable cost reduction can be achieved by improved exploitation of congestion. This implies that if the Nordic area is divided into price zones, it is advantageous to regard the grid as an entity independent of national borders and system operators and to let the real transmission limitations determine the price zoning

Deregulation of the Nordic power market and environmental policy

International Nuclear Information System (INIS)

Amundsen, E.S.; Nesse, A.; Tjoetta, S.

1999-01-01

A common Nordic power market will reduce total CO2 emissions in the Nordic countries as compared to a situation of autarky and, thus, reduce the aggregate cost of complying to strict national CO2 emission targets. A common market for CO2 emission permits may reduce the aggregate cost further, but this cost reduction will be smaller the harsher the CO2 emission constraints are. The economic gain of introducing a common Nordic power market will be particularly large in the case of a Swedish nuclear power phase out. In this case, the cost reduction of introducing a common market for CO2 emission permits will not be very large. 10 refs

NordREG report on the price peaks in the Nordic wholesale market during winter 2009-2010. Final report

Energy Technology Data Exchange (ETDEWEB)

2011-01-15

In winter 2009-2010, prices peaked on three days. The high prices that were experienced in the majority of the Nord Pool Spot price areas initiated a study on the reasons that led to the price spikes and on the possible measures to develop the Nordic market arrangements to avoid such situations in the future. The analysis of the winter 2009-2010 events revealed that there were a number of primary causes for the occurrence of the price peaks and no single individual cause could be pinpointed to bear the key responsibility. The fact that the weather was cold all over the Nordic area in conjunction with the low availability for the Swedish nuclear generation capacity, however, could be indicated as the key underlying causes. The analysis also showed that the way the Nordic transmission capacity is allocated can be listed as an additional factor complementing to the occurrence of the price peaks. Thus, NordREG concluded that a review of the methods of calculating and allocating transmission capacity for the market should be carried out. As a part of this, an analysis that addresses the delimitation of bidding areas and maintenance planning of the transmission network infrastructure should be prepared as well. The flexibility on the demand side has not been very large in the Nordic region. However, the background study prepared by Gaia Consulting showed that even small degree of increased price elasticity could substantially cut the price peaks. This could be seen as an improvement potential of the trading system reflecting the present inability of the market participants to react on the price signals the market place provides. Therefore, NordREG sees that facilitating the appearance of a real price elastic behaviour of the users of electricity can be regarded as one of the key fixes for the problem. Furthermore, NordREG proposes that a consultancy study on how to promote demand flexibility in the Nordic market in a coherent way should be prepared. A further area for

Price Formation and Competition in the Swedish Electricity Market. Main findings of ER 2006:13

International Nuclear Information System (INIS)

2006-11-01

The Nordic electricity market can be divided into a Nordic wholesale market - the producer market - and the, national, retail markets. Nord Pool organises a 24-hour market for the physical trade of electricity, the spot market. Nord Pool also has a market place for so-called financial trade where players can (among other things) hedge themselves against price risks. Thus, the trade at Nord Pool represents the basis for trading with electricity throughout the entire Nordic market. In addition to the trade at Nord Pool, there is also bilateral trading between buyers and sellers. The report has been arranged as follows. Initially the functioning of the wholesale market is analysed, the issues addressed include the price formation in the spot market, the functioning of the financial market, as well as the price development in the spot market. The section ends with an analysis of the competitive situation in the Nordic wholesale market with a focus on Sweden. The next section focuses on how a potential introduction of Elspot areas in Sweden might affect the conditions for competition. The third section looks at certain conditions in the Swedish retail market and on certain consequences for households and electricity-intensive industry due to the price increases in recent years. The report concludes with the Energy Markets Inspectorate's deliberations on the need for measures to be undertaken in the Swedish and Nordic electricity market. The concentration on the Nordic electricity market is at a level where the authorities monitoring competition need to counteract changes that lead to further concentration. The present structure of the market, with an increasingly high concentration and co-ownership of power stations, also places demands on the authorities responsible for monitoring competition to implement measures designed to detect and to prevent the possible abuse of market power. There is a substantial need for research on competition and efficiency on the

A Mixed Nordic Experience:

DEFF Research Database (Denmark)

Olsen, Ole Jess; Johnsen, Tor Arnt; Lewis, Philip

2006-01-01

Although the Nordic countries were among the first to develop competition in the electricity industry, it took a long time to make retail competition work. In Norway and Sweden a considerable number of households are actively using the market but very few households are active in Finland and Denm......Although the Nordic countries were among the first to develop competition in the electricity industry, it took a long time to make retail competition work. In Norway and Sweden a considerable number of households are actively using the market but very few households are active in Finland...

Climate change: impacts on electricity markets in Western Europe.

Science.gov (United States)

Golombek, Rolf; Kittelsen, Sverre A C; Haddeland, Ingjerd

This paper studies some impacts of climate change on electricity markets, focusing on three climate effects. First, demand for electricity is affected because of changes in the temperature. Second, changes in precipitation and temperature have impact on supply of hydro electric production through a shift in the inflow of water. Third, plant efficiency for thermal generation will decrease because the temperature of water used to cool equipment increases. To find the magnitude of these partial effects, as well as the overall effects, on Western European energy markets, we use the multi-market equilibrium model LIBEMOD. We find that each of the three partial effects changes the average electricity producer price by less than 2%, while the net effect is an increase of only 1%. The partial effects on total electricity supply are small, and the net effect is a decrease of 4%. The greatest effects are found for Nordic countries with a large market share for reservoir hydro. In these countries, annual production of electricity increases by 8%, reflecting more inflow of water, while net exports doubles. In addition, because of lower inflow in summer and higher in winter, the reservoir filling needed to transfer water from summer to winter is drastically reduced in the Nordic countries.

Are households better off in liberalized electricity markets

DEFF Research Database (Denmark)

Olsen, Ole Jess; Johnsen, Tor Arnt; Pakkanen, Merja

wholesale market. Norway was first (1991), then came Finland and Sweden (1996) and Denmark was last (2000). Together with the UK the Nordic countries are now considered the avantgarde with respect to implementation of the European electricity market directives. The purpose of liberalization is to increase...... utilities mostly acted under very little surveillance and the authorities only intervened in specific cases of abuse. The separation of operational and regulatory functions was far from clear-cut - state and municipal agencies often had both functions. Today much more detailed principles of regulations...... administrated by independent regulatory agencies have been developed. The purpose of this paper is to analyze the situation for Nordic household consumers after liberalization of the electricity supply industry. A number of new regulatory principles have been introduced and some of them with particular regard...

Security of supply on the electricity market. Report of a working group

International Nuclear Information System (INIS)

2000-06-01

The shift from a regulated electricity market to open competitive electricity markets has been fast in Finland. Finland together with Sweden, Norway and partly also Denmark form a common market area where the internal trade in electricity has markedly increased. Partly as a result of this, the share of net import in our electricity consumption has increased. The low price level on the Nordic market has contributed to an increased import of electricity to Finland. The generally clearly increased production of hydroelectric power together with the functioning principles of the Nordic electricity exchange have lead to a situation where the competitive position of indigenous electricity, especially that from condensing power, has become more difficult. In Finland, several condensing power plants have, accordingly, been closed and the trend seems to continue. Similar development has taken place also in Sweden and Denmark. In the current market situation, the decisions upon investment in the construction of new power plants have further been postponed until later. Because the economic interest of the market players in maintaining slow reserve capacity has been reduced in the current market situation, there is concern whether the market is able to guarantee the security of electricity supply in all circumstances with varying demand taking also account of possible long-term malfunction of power plants or disturbances in the import of electricity or gas. Sweden and Norway are besides Finland net importers of electricity in normal hydrological years. Of the Nordic countries, only Denmark is able to balance the Nordic demand for electricity in case of a poor hydrological year. The price level on the electricity market is expected to remain low still for years. Building new capacity during the coming few years seems unlikely in all Nordic countries. The increased consumption of electricity as a result of economic growth and the reduction in capacity will however lead to a

Bioenergy '97: Nordic Bioenergy Conference, market, environment and technology

International Nuclear Information System (INIS)

1997-01-01

(Leading abstract). The conference ''Bioenergy '97: Nordic Bioenergy Conference, market, environment and technology'' took place in Oslo, Norway, 7-8 Oct 1997. The conference papers are grouped under three headings: (1) The nordic energy market. 12 papers. (2) Production and sale of biofuels. 8 papers. (3) Conversion and utilization of biofuels. With subsections New technologies, 4 papers, and Power/heat production from biofuels, 4 papers

Regulatory Barriers for Flexible Coupling of the Nordic Power and District Heating Markets

DEFF Research Database (Denmark)

Skytte, Klaus; Olsen, Ole Jess

2016-01-01

that the choice of technologies for heat generation is mainly driven by outdated policies and tax conditions that create barriers for additional flexibility in the overall energy system. However, the balancing markets may be a main driver for introducing more electric boilers into DH and thereby increase its......Large share of variable renewable energy sources (VRE) is being deployed in the Nordic countries, especially wind power. This calls for additional flexibility of the power market. With the right coupling to the underlying national and local district heating (DH) markets, large shares of flexibility...

Common Nordic Retail Market. Organisation of the further work

Energy Technology Data Exchange (ETDEWEB)

2010-12-15

For several years NordREG has been working to promote and facilitate a common Nordic end user market. Given the political support that was expressed at the meeting of the Nordic energy ministers in the autumn of 2009, the work has become even more concrete. It should also be noted that the energy ministers expressed their support for the NordREGs implementation plan for a common Nordic retail market at their yearly meeting on the 25th of October 2010. With this organization document, NordREG define the organization of the future work and the governance rules of the whole process. The document shows which bodies needs to be established, what their roles are and how the decision-making and the consultation of stakeholders will be organized. As the document shows, the need for contributed efforts from all stakeholders will be vital in the coming years in order to make a reality of the plans for creating a common Nordic end user market. The organization document has been prepared by the NordREG Retail and Distribution Working Group. Nordenergi and Nordic TSOs have had an opportunity to comment the document before it was finalized. NordREG appreciates all the comments and has taken them into consideration before finalizing the document

Investments and price formation in a liberalized electric power market. Appendices; Investering og prisdannelse pae et liberaliseret elmarked. Bilag

Energy Technology Data Exchange (ETDEWEB)

Morthorst, P.E.

2005-05-01

How will the electric power prices in the Nordic electric power market develop if the generation capacity in the coming 10 to 15 years is increased considerably? And what are the conditions for investors to initiate new investments in power plants? Briefly speaking - these are the issues for the project that is reported in this report. The basis for the project has been the Nordic electric power market model and its capability to handle the future extension of the necessary generating capacity. The main issue in the project has been a quantitative analysis of what the prices in the Nordic electric power market will be in the future, depending on the size of new investments in the power generating capacity. The appendix volume of the project report contains detailed descriptions of the three models that are used: the Balmorel model, the investment model, and the MARS model. The Balmorel model is a partial equilibrium model that describes a coherent, international electric power system and combined heat and power system. The model was developed in 2000 through international co-operation with the aim to have a model for analysing international aspects in the Baltic area. The investment model analyses and models the investment decisions in a liberalized Nordic electric power market. It is an exogenous model constructed outside the Balmorel model but uses the price pictures from the Balmorel model as input. MARS (MARket Simulation) is Eltra's (a Danish electric power transmission company) market model for simulating prices, production, demand and exchanges in the power market. The model covers the Nordic countries (Nord Pool) and Northern Germany. (LN)

Optimal electricity market for wind power

International Nuclear Information System (INIS)

Holttinen, H.

2005-01-01

This paper is about electricity market operation when looking from the wind power producers' point of view. The focus in on market time horizons: how many hours there is between the closing and delivering the bids. The case is for the Nordic countries, the Nordpool electricity market and the Danish wind power production. Real data from year 2001 was used to study the benefits of a more flexible market to wind power producer. As a result of reduced regulating market costs from better hourly predictions to the market, wind power producer would gain up to 8% more if the time between market bids and delivery was shortened from the day ahead Elspot market (hourly bids by noon for 12-36 h ahead). An after sales market where surplus or deficit production could be traded 2 h before delivery could benefit the producer almost as much, gaining 7%

Analysing the relationship between wholesale and end-user prices in the Nordic electricity market

International Nuclear Information System (INIS)

Lewis, P.E.; Johnsen, T.A.; Naervae, T.; Wasti, S.

2004-09-01

Efficient pricing in a deregulated market means prices which closely reflect the cost of obtaining electricity in the wholesale market. This research report analyses and explains the relationship between wholesale prices (especially Spot Prices) and end-user prices for residential, industrial and commercial users in the Finnish, Swedish and Norwegian electricity markets. The report primarily analyses the closeness of wholesale and end-user price patterns (the primary tracking period is 1998-2003, focusing especially closely on Finland and the period 2002-2003). The report reveals that Finnish, Norwegian and Swedish end- user prices can all be said to follow spot prices (and other wholesale prices) to a greater or lesser extent. The relationship is however complex and, especially regarding spot prices, clearly closest in Norway, followed by Sweden and then Finland. Whilst, overall, Finnish prices seem quite competitive and Nordic end-user prices currently seem to be extremely similar, there is some cause for concern in Finland. In particular, very few customers have spot based tariffs; wholesale prices (including spot prices) appear to sometimes have been used as an excuse for end-user price rises; Finnish suppliers have often been slow to respond to post-spike spot price reductions; offer prices are currently often higher than standard variable prices; and suppliers seem quite free to follow any pricing strategy, regardless of the presence of competition. Six factors are identified which influence end-user prices and their relationship with wholesale (and particularly spot) prices: hydro-dependency; concentration and entry barriers; cultural and historical determination; legislation; pricing strategies; the competitive environment. The report additionally specifically illustrates a wide variety of possible supplier strategies which might explain Finnish end-user pricing. Spot prices seem to provide only a minor explanation for Finnish end-user prices. (orig.)

Optimal Planning of the Nordic Transmission System with 100% Electric Vehicle Penetration of passenger cars by 2050

DEFF Research Database (Denmark)

Graabak, Ingeborg; Wu, Qiuwei; Warland, Leif

2016-01-01

This paper presents the optimal planning of the Nordic backbone transmission system with 100% electric vehicle penetration of passenger cars by 2050. Electric vehicles will play an important role in the future energy systems and can reduce the greenhouse gas emission from the transport sector....... However, the electric vehicles will increase the electricity consumption and might induce congestions in the transmission systems. In order to deal with the electricity consumption increase from the electric vehicle integration into the power system and maximize the social welfare, the optimal investments...... of the Nordic transmission system are studied. Case studies were conducted using the market simulation model EMPS and two electric vehicle charging scenarios: a spot price based scenario and a dumb charging scenario. The electric vehicle charging power is assumed to be 3.68 kW with 1 phase 16A. The complete...

The need to strengthen the electricity market with a better network

International Nuclear Information System (INIS)

Morch, Stein

2002-01-01

Price regions in the Nordic electricity market has been common. The competition authorities, the electricity exchange and the other actors indicate the need for increased capacity of the network. A larger concentration of big, competing producers in the Nordic countries is not desirable. The current competition among bidders is satisfactory at a common price level. Under conditions of price regions it is essential that there is competition in the area, which has not always been the case

Power exchange game in the electricity market

International Nuclear Information System (INIS)

Pyykko, S.; Partanen, J.; Viljainen, S.; Lassila, J.; Honkapuro, S.; Tahvanainen, K.

2006-01-01

Since it is not economically reasonable to build parallel electricity networks, in Finland, Sweden, Norway and Denmark, electricity distribution is protected by monopoly. However, electricity production and selling have been opened up to competition by connecting the transmission networks of these countries together, and it is possible to produce electricity where it is cheapest. A common electricity power market, called Nord Pool, has been created where electricity can be bought, sold or used as an exchange product. In order to help students understand the operation of electricity markets and the use of different electricity exchange products, the Department of Electrical Engineering at Lappeenranta University developed a scheme in which the theory can be used in practice. In the scheme, students are given the responsibility to manage the electricity markets of power companies in order analyze, plan and make decisions, which are skills required on the open power markets. The paper provided an introduction to the electricity markets in Nordic countries and discussed Nord Pool and its products. Information about education at the Department of Electrical Engineering at Lappeenranta University of Technology was also presented. The paper also provided details of the power exchange scheme on the electricity markets. 6 refs., 17 figs

Nordic cooperation within natural gas research

International Nuclear Information System (INIS)

Edna, O.-J.

1993-01-01

Nordic cooperation within natural gas research is discussed. A reorganization of this cooperation has recently taken place. It is explained that common Nordic resources are now to be concentrated within 7 areas, one of which is the area of energy/industrial policies, regional policies and agriculture and forestry, all under the common heading of ''Economy''. The plan of activities within this area includes international cooperation within the European Communities, the European Energy Charter, the International Energy Agency and will involve the energy policy situation in eastern Europe and the Baltic countries, the electric power and natural gas markets in the northern countries, energy related environmental questions and Nordic energy research cooperation. Nordic research activities constitute 2% of research resources within the OECD. The basis for Nordic research cooperation (for example a common cultural background) is described, and suggestions are made as to how it should be administrated. The Nordic energy research programme for 1991-1994 embodies bioenergy and the environment, fuel cells, energy and the society, solid fuels, district heating and petroleum technology. The status report for the nordic gas market, which represents the Nordic gas companies' evaluation of the Nordic gas market, is summarized, and Nordic research activities related to gas utilization are shortly commented upon. (AB)

Pricing of Contracts for Difference in the Nordic market

International Nuclear Information System (INIS)

Kristiansen, T.

2004-01-01

The purpose of this paper is to give an introduction to, and a pricing analysis of a new forward locational price differential product, Contracts for Difference (CfD), introduced the 17th of November 2000 at Nord Pool - the Nordic electricity exchange. To our knowledge there is no literature available of how the Nordic CfDs are priced. The CfD is a forward market product with reference to the difference between the future seasonal Area Price and System Price. By using available historical trading prices and spot prices for four seasonal contracts and one yearly contract, we analyze the relationships between the contract prices and the value of the underlying asset. For the first four seasonal contracts it appears that CfDs traded at Nord Pool are mostly over-priced relative to the underlying asset. Pricing theory for forward contracts explains this by the presence of a majority of risk-averse consumers who are willing to pay a risk premium for receiving the future price differential. We utilize statistical analysis with regard to the contract prices and the underlying asset, and find some interesting relationships. The analysis is preliminary due to the fact that the CfD market is relatively new. (Author)

An open data repository and a data processing software toolset of an equivalent Nordic grid model matched to historical electricity market data.

Science.gov (United States)

Vanfretti, Luigi; Olsen, Svein H; Arava, V S Narasimham; Laera, Giuseppe; Bidadfar, Ali; Rabuzin, Tin; Jakobsen, Sigurd H; Lavenius, Jan; Baudette, Maxime; Gómez-López, Francisco J

2017-04-01

This article presents an open data repository, the methodology to generate it and the associated data processing software developed to consolidate an hourly snapshot historical data set for the year 2015 to an equivalent Nordic power grid model (aka Nordic 44), the consolidation was achieved by matching the model׳s physical response w.r.t historical power flow records in the bidding regions of the Nordic grid that are available from the Nordic electricity market agent, Nord Pool. The model is made available in the form of CIM v14, Modelica and PSS/E (Siemens PTI) files. The Nordic 44 model in Modelica and PSS/E were first presented in the paper titled "iTesla Power Systems Library (iPSL): A Modelica library for phasor time-domain simulations" (Vanfretti et al., 2016) [1] for a single snapshot. In the digital repository being made available with the submission of this paper (SmarTSLab_Nordic44 Repository at Github, 2016) [2], a total of 8760 snapshots (for the year 2015) that can be used to initialize and execute dynamic simulations using tools compatible with CIM v14, the Modelica language and the proprietary PSS/E tool are provided. The Python scripts to generate the snapshots (processed data) are also available with all the data in the GitHub repository (SmarTSLab_Nordic44 Repository at Github, 2016) [2]. This Nordic 44 equivalent model was also used in iTesla project (iTesla) [3] to carry out simulations within a dynamic security assessment toolset (iTesla, 2016) [4], and has been further enhanced during the ITEA3 OpenCPS project (iTEA3) [5]. The raw, processed data and output models utilized within the iTesla platform (iTesla, 2016) [4] are also available in the repository. The CIM and Modelica snapshots of the "Nordic 44" model for the year 2015 are available in a Zenodo repository.

Windonomics. Empirical essays on the economics of wind power in the Nordic electricity market

Energy Technology Data Exchange (ETDEWEB)

Mauritzen, Johannes

2012-07-01

From the introduction: The following chapters in this dissertation take up three topics surrounding the interaction of wind power investment in Denmark and the functioning of the deregulated Nordic electricity market. The first two chapters take up the issue of how wind power a affects prices in the deregulated market. I find that electricity price variation in the spot market is lower in days with more wind power. In the following chapter I extend this analysis to see how wind power in Denmark affects prices in neighbouring hydro power dominated Norway. I find that wind power affects the magnitude of trade between the countries asymmetrically - dependent on the net direction of trade. I also find that wind power has a slight but statistically significant negative effect on prices in Norway, likely due to a slackening of hydro power producers supply constraints. The last chapter starts with the observation that most turbines are scrapped in order to make room for a newer turbine. An opportunity cost that comes from the interaction of scarce land resources, technological change and government policy is then a dominant reason for the scrapping of wind turbines. This leads to the implication that turbines located on windier, better situated land have a higher risk of being scrapped. Policy is also shown to have a strong and in some respects unexpected effect on scrappings. Over the last two decades two major trends have taken place in power markets around the world. The first has been a movement towards market based power systems. Vertically integrated power companies have been split into component generation, transmission and retailing companies. Generation and retailing have been opened to competition. Increasingly, regulated prices and bilateral trade are being replaced by regulated markets that establish prices through auction mechanisms. The second trend has been investment in renewable and intermittent energy sources - notably wind power. What started as

Risk-minimisation in electricity markets

DEFF Research Database (Denmark)

Tegner, Martin; Ernstsen, Rune Ramsdal; Skajaa, Anders

2017-01-01

This paper analyses risk management of fixed price, unspecified consumption contracts in energy markets. We model the joint dynamics of the spot-price and the consumption of electricity, study expected loss minimisation for different loss measures, and derive optimal static hedge strategies based...... on forward contracts. The strategies are implemented empirically and compared to a benchmark strategy widely used by the industry. On 2012–2014 Nordic market data, the suggested hedges significantly outperform the benchmark: The realised cumulative profit-and-losses are greater for almost every single one...

Studies in market-based electric power trade and regulation

International Nuclear Information System (INIS)

Hope, Einar

2000-01-01

This is a compilation of articles written by the author during the last fifteen years. Most of the articles are related to the reform of the Norwegian electric power market. This reform led to the Energy Act of 1990 and to the subsequent development of the power markets. Some of the sections are in Norwegian, some in English. The sections discuss (1) Markets for electricity trade in Norway, (2) Economic incentives and public firm behaviour, (3) Market alternatives to the present forms of occasional power trade, (4) Socio-economic considerations about electricity pricing, (5) Scenarios for market based power trade in Norway, (6) Markets for electricity: economic reform of the Norwegian electricity industry, (7) The Norwegian power market, (8) A common Nordic energy market?, (9) Organization of supply markets for natural gas in Europe, (10) The extent of the central grid, (11) Optimum regulation of grid monopolies in the power trade, (12) Power markets and competition policy, (13) Deregulation of the Norwegian power sector, (14) designing a market based system for the Icelandic electricity industry and (15) regulation regimes for the power sector

Real-Time Pricing in the Nordic Power markets

International Nuclear Information System (INIS)

Kopsakangas Savolainen, Maria; Svento, Rauli

2012-01-01

In this paper we study the potential effects of Real-Time Pricing (RTP) of electricity on the need for long-run capacities in the Nordic Power markets. A characteristic of the Nordic Power market is the large variety of production technologies, of which hydro and nuclear power are capacity constrained. We analyze the impact of RTP on: the need for total, peak and midmerit capacities; total demand; prices; peak demand hours; and economic welfare. We have also studied whether the results of RTP are sensitive to the simultaneous implementation of tradable emission permits. We find that RTP diminishes the need for total capacity even with inelastic demand. Our results show that even with modest assumptions related to RTP participation, the annual midmerit and peaker capacity efficiency savings amount to 97 million Euros, which are around 6% of their total annual investment costs. The price of the peak demand hour clearly diminishes as the share of the RTP customers increases or demand becomes more price elastic. We compare RTP and tradable emission permits as two separate instruments in reaching energy use efficiencies and show how these two instruments must be seen as complementary and not as substitutable instruments. We show how RTP and tradable emission permits have a positive correlation in promoting market access of renewable energy sources. We find that welfare effects of the implementation of RTP are positive. - Highlights: ► RTP diminishes the need for total capacity even with inelastic demand. ► The capacity efficiency savings are around 6% of their annual investment costs. ► RTP and ETS should be seen as complementary and not as substitutable instruments. ► RTP and ETS have a positive correlation in promoting market access of renewables. ► Welfare effects of the implementation of RTP are positive.

Security of supply in competitive electricity markets: The Nordic power market

International Nuclear Information System (INIS)

Singh, Balbir

2004-01-01

It is well known that in the absence of a complete set of markets or under conditions of monopoly and imperfect competition, optimal provision of quality can not be taken for granted. Market set in the restructured electricity markets is not complete, physical networks per definition are natural monopolies, market-power issues are yet to be resolved, not all the services supplied through the restructured frameworks are private goods and risk of government intervention is high during the times when market prices signal shortages. Sole reliance on the energy-only markets for optimal provision of security of supply under such conditions is mistaken. On the other hand, centralization of decisions for provision of reserve capacity, such as the gas-reserve capacity proposal in the Norwegian system is not an efficient substitute for missing or imperfect markets. The solution lies in the design of permanent market-mechanisms that enhance the ability of energy-only markets to handle the medium and long-term security of supply. A carefully designed reserve energy certificates mechanism is a viable alternative in this context. (Author)

The reform of the Swedish electricity market

International Nuclear Information System (INIS)

Petsala, B.

1995-01-01

The objective of the ongoing reform of deregulation of the electricity market in Sweden is to create and improve the prerequisites for more efficient use of the generation and distribution, thus bringing about a more efficient price building. Similar reforms take place in the other Nordic countries. As a result of these changes the possibilities for international trade in electricity increases considerably. Tendencies towards concentration of production and distribution as well as increased vertical integration make it important for the State to monitor the development and if necessary suggest measures to counteract possible undesired effects. The national character of the former electricity market does no longer constitute a restriction to trade and the power companies already operate in each other's market. (author). 2 figs., 4 tabs., 6 refs

Cogeneration and taxation in a liberalised Nordic power market

International Nuclear Information System (INIS)

Jess Olsen, O.; Munksgaard, J.

1997-01-01

This report is about the impact of the liberalisation of the Nordic power market on cogeneration of heat and power. Special attention is given to the effects on competition of the entirely different tax regimes in the Nordic countries. Some of the main questions answered in this study are: Which cogeneration technologies are able to compete on a liberalised power market? What are the consequences of different tax structures in the four countries for cross-border competition? Which principles should be applied if a common Nordic tax structure is to be developed? The following countries are included in the study: Denmark, Finland, Norway and Sweden. Today, cogeneration provides a larger contribution to the energy supply in the Nordic countries than elsewhere in the world. Our analysis demonstrates that most cogeneration technologies can compete with the power-only technologies. This is the case with respect to both long- and short-term marginal costs. The main exception is the very expensive straw-fired cogeneration technology. The analysis is extended to include the effects of the existing tax regimes (in 1996) in Denmark, Finland and Sweden as well as of the combines energy/CO 2 -tax that was proposed in 1992 by the European Commission. Each of the four tax regimes preserve the competitiveness of cogeneration within its own regime, i.e. if a given cogeneration technology is competitive without taxes it will remain so in a closed market when either Danish, Finnish, Swedish or European taxes are added. The implication of this is that the same cogeneration technology will be exposed to very different conditions in an open power market with cross-border competition, if the present tax regimes in the Nordic countries are allowed to continue. (EG) Also published in Danish. 15 refs

Cogeneration and taxation in a liberalised Nordic power market

Energy Technology Data Exchange (ETDEWEB)

Jess Olsen, O.; Munksgaard, J.

1997-12-31

This report is about the impact of the liberalisation of the Nordic power market on cogeneration of heat and power. Special attention is given to the effects on competition of the entirely different tax regimes in the Nordic countries. Some of the main questions answered in this study are: Which cogeneration technologies are able to compete on a liberalised power market? What are the consequences of different tax structures in the four countries for cross-border competition? Which principles should be applied if a common Nordic tax structure is to be developed? The following countries are included in the study: Denmark, Finland, Norway and Sweden. Today, cogeneration provides a larger contribution to the energy supply in the Nordic countries than elsewhere in the world. Our analysis demonstrates that most cogeneration technologies can compete with the power-only technologies. This is the case with respect to both long- and short-term marginal costs. The main exception is the very expensive straw-fired cogeneration technology. The analysis is extended to include the effects of the existing tax regimes (in 1996) in Denmark, Finland and Sweden as well as of the combines energy/CO{sub 2}-tax that was proposed in 1992 by the European Commission. Each of the four tax regimes preserve the competitiveness of cogeneration within its own regime, i.e. if a given cogeneration technology is competitive without taxes it will remain so in a closed market when either Danish, Finnish, Swedish or European taxes are added. The implication of this is that the same cogeneration technology will be exposed to very different conditions in an open power market with cross-border competition, if the present tax regimes in the Nordic countries are allowed to continue. (EG) Also published in Danish. 15 refs.

The Nordic power exchange Nord pool and the Nordic model for a liberalised power market

International Nuclear Information System (INIS)

Houmoller, A. P.

2000-01-01

As the first countries in the world, the Nordic countries Norway, Sweden, Finland and denmark have established a common, multinational power exchange. By means of this common power exchange, these countries also have established a common power market. this is also the first - and for the time being - the only place in the world, where you can find a multinational, truly competitive power market. This Nordic model has attracted much interest from other countries in Europe, Asia, North America and South America. The presentation will explain, how the common power exchange makes it possible for the four countries and the five system operators in Scandinavia physically and financially to operate a common, multinational, competitive power market. The presentation will explain how this systems works in the Nordic countries by discussion the following items: - The non-commercial players: The Transmission System Operators and the local grid operators; - The market players: the producers, the retailers, the traders, the brokers and the end users; - The access to the grid: The point tariff system; - The fairness towards the market players and the security of supply: The balancing power and the regulating power; - The power exchange handles bottlenecks in the grid. The presentation will explain how this is done and will demonstrate how this gives the power market a bottleneck handing method which:- Is neutral and fair towards all the market players, - Ensures that all the capacity of any bottleneck is utilised during every hour of operation, - Is extremely easy to use for the Transmission System Operators - also if the bottleneck is cross-border bottleneck; - The Nord Pool spot market Elspot; - The Nord Pool futures market Eltermin; - Area prices; - How financial contracts replace physical contracts when the power market is liberalised; - The day-to-day market and the market for long-term contracts in a liberalised power market; - How to eliminate the c ounter party risk

Ownership structure and market power in the nordic power market

International Nuclear Information System (INIS)

Amundsen, E.S.; Bergman, L.

1999-01-01

The opening of Nord Pool in 1996 seriously constrained the power companies' ability to exercise market power within their national borders. Currently there is an integration process going on among the power companies in the Nord Pool area. It manifest itself in terms of take-over and reciprocal acquisition of shares in the power companies - nationally and abroad. This process may undo what the introduction of the common power market achieved in curtailing market power. The aim of this paper is to investigate the effects on market power of increased cross- ownership in the Nordic power market. (au)

Market Power in Power Markets: Evidence from Forward Prices of Electricity

DEFF Research Database (Denmark)

Christensen, Bent Jesper; Jensen, Thomas Elgaard; Mølgaard, Rune

We examine the forward market for electricity for indications of misuse of market power, using a unique data set on OTC price indications posted by Elsam A/S, the dominant producer in Western Denmark, which is one of the price areas under the Nordic power exchange Nord Pool. The Danish Competition...... Council (the regulatory government agency) has ruled that Elsam has used its dominant position to obtain excessive spot prices over a period from July 2003 through December 2006. We show that significant forward premia exist, and that they are related both to spot market volatility and misuse of market...... are consistent across forward premium regressions and structural forward pricing models....

Real-time versus day-ahead market power in a hydro-based electricity market

OpenAIRE

Tangerås, Thomas P.; Mauritzen, Johannes

2014-01-01

We analyse in a theoretical framework the link between real-time and day-ahead market performance in a hydro-based and imperfectly competitive wholesale electricity market. Theoretical predictions of the model are tested on data from the Nordic power exchange, Nord Pool Spot (NPS).We reject the hypothesis that prices at NPS were at their competitive levels throughout the period under examination. The empirical approach uses equilibrium prices and quantities and does not rely on bid data nor o...

Future Potential for Hydro-Québec and the Québec electricity market

OpenAIRE

Teig, Atle Nedbu

2010-01-01

The purpose of this thesis is to investigate what a restructuring of the Québec electricity market could mean for Hydro-Québec and the Province of Québec. The thesis is divided into four main sections. Section one describes the drivers of electricity markets and we get an introduction to the situation in Québec. The environmental aspect of energy is also explained. Section two describes the electricity market in Norway and the Nordic countries, which works as a benchma...

Support mechanisms and risk: Implications on the Nordic electricity system

DEFF Research Database (Denmark)

Kitzing, Lena; Ravn, Hans

2013-01-01

a stochastic analysis for the Nordic electricity system by conducting simulations with the energy system model Balmorel and by applying the mean-standard deviation approach of modern portfolio theory to quantify risk implications of policy instruments for an exemplary offshore wind park. The analysis reveals......Investments in renewable energy projects, such as offshore wind parks, are very much dependent on financial support. The type of policy instrument chosen for such support determines investors' exposure to market risk, and thus influences which rate of return they expect to achieve. We make...... that the two support policy schemes Feed-in Tariffs and Feed-in Premiums provide different risk-return relationships. In the investigated case, a Feed-in Premium scheme would require a 13% higher support level, because of a 6% higher exposure of investors to market risk. Our findings can help when designing...

Market power in the European electricity market - The impacts of dry weather and additional transmission capacity

International Nuclear Information System (INIS)

Lise, Wietze; Hobbs, Benjamin F.; Hers, Sebastiaan

2008-01-01

This paper uses a static computational game theoretic model of a fully opened European electricity market and can take strategic interaction among electricity-producing firms into account. The model is run for a number of scenarios: first, in the baseline under perfect competition, the prices differ due to the presence of various generation technologies and a limited ability to exchange electricity among countries. In addition, when large firms exercise market power, the model runs indicate that prices are the highest in countries where the number of firms is low. Second, dry weather would increase the prices in the hydro-rich Nordic countries followed by the Alpine countries. The price response would be about 20% higher with market power. Third, more transmission capacity would lower the prices in countries with high prices and it also reduces the impact of market power. Hence, more transmission capacity can improve market competitiveness. (author)

Market power in the European electricity market-The impacts of dry weather and additional transmission capacity

Energy Technology Data Exchange (ETDEWEB)

Lise, Wietze [IBS Research and Consultancy, Agahamami Cadessi 1/6, Aga Han, Cihangir, 34433 Beyoglu, Istanbul (Turkey); Energy Markets and International Environmental Policy Group, ECN Policy Studies, Energy Research Centre of the Netherlands, Amsterdam (Netherlands)], E-mail: wietze.lise@ibsresearch.com; Hobbs, Benjamin F. [Department of Geography and Environmental Engineering, Johns Hopkins University, Baltimore, MD 21218 (United States); Hers, Sebastiaan [Energy Markets and International Environmental Policy Group, ECN Policy Studies, Energy Research Centre of the Netherlands, Amsterdam (Netherlands)

2008-04-15

This paper uses a static computational game theoretic model of a fully opened European electricity market and can take strategic interaction among electricity-producing firms into account. The model is run for a number of scenarios: first, in the baseline under perfect competition, the prices differ due to the presence of various generation technologies and a limited ability to exchange electricity among countries. In addition, when large firms exercise market power, the model runs indicate that prices are the highest in countries where the number of firms is low. Second, dry weather would increase the prices in the hydro-rich Nordic countries followed by the Alpine countries. The price response would be about 20% higher with market power. Third, more transmission capacity would lower the prices in countries with high prices and it also reduces the impact of market power. Hence, more transmission capacity can improve market competitiveness.

Market power in the European electricity market - The impacts of dry weather and additional transmission capacity

Energy Technology Data Exchange (ETDEWEB)

Lise, Wietze [IBS Research and Consultancy, Agahamami Cadessi 1/6, Aga Han, Cihangir, 34433 Beyoglu, Istanbul (Turkey); Energy Markets and International Environmental Policy Group, ECN Policy Studies, Energy Research Centre of the Netherlands, Amsterdam (Netherlands); Hobbs, Benjamin F. [Department of Geography and Environmental Engineering, Johns Hopkins University, Baltimore, MD 21218 (United States); Hers, Sebastiaan [Energy Markets and International Environmental Policy Group, ECN Policy Studies, Energy Research Centre of the Netherlands, Amsterdam (Netherlands)

2008-04-15

This paper uses a static computational game theoretic model of a fully opened European electricity market and can take strategic interaction among electricity-producing firms into account. The model is run for a number of scenarios: first, in the baseline under perfect competition, the prices differ due to the presence of various generation technologies and a limited ability to exchange electricity among countries. In addition, when large firms exercise market power, the model runs indicate that prices are the highest in countries where the number of firms is low. Second, dry weather would increase the prices in the hydro-rich Nordic countries followed by the Alpine countries. The price response would be about 20% higher with market power. Third, more transmission capacity would lower the prices in countries with high prices and it also reduces the impact of market power. Hence, more transmission capacity can improve market competitiveness. (author)

Risk management in electricity markets emphasizing transmission congestion

International Nuclear Information System (INIS)

Kristiansen, Tarjei

2004-01-01

This thesis analyzes transmission pricing, transmission congestion risks and their associated hedging instruments as well as mechanisms for stimulating investments in transmission expansion. An example of risk management in the case of a hydropower producer is included. After liberalization and restructuring of electricity markets, risk management has become important. In particular the thesis analyzes risks due to transmission congestion both in the short- and long-term (investments) for market players such as generators, loads, traders, independent system operators and merchant investors. The work is focused on the northeastern United States electricity markets and the Nordic electricity markets. The first part of the thesis reviews the literature related to the eight research papers in the thesis. This describes the risks that are relevant for an electricity market player and how these can be managed. Next, the basic ingredients of a competitive electricity market are described including the design of the system operator. The transmission pricing method is decisive for hedging against transmission congestion risks and there is an overview of transmission pricing models considering their similarities and differences. Depending on the transmission pricing method used, locational or area (zonal) pricing, the electricity market players can use financial transmission rights or Contracts for Differences, respectively. In the long-term it is important to create mechanisms for investments in transmission expansion and the thesis describes one possible approach and its potential problems. The second part comprises eight research papers. It presents empirical analyses of existing markets for transmission congestion derivatives, theoretical analyses of transmission congestion derivatives, modeling of merchant long-term financial transmission rights, theoretical analysis of the risks of the independent system operator in providing financial transmission rights, an analysis

Constructing forward price curves in electricity markets

International Nuclear Information System (INIS)

Fleten, Stein-Erik; Lemming, Jacob

2003-01-01

We present and analyze a method for constructing approximated high-resolution forward price curves in electricity markets. Because a limited number of forward or futures contracts are traded in the market, only a limited picture of the theoretical continuous forward price curve is available to the analyst. Our method combines the information contained in observed bid and ask prices with information from the forecasts generated by bottom-up models. As an example, we use information concerning the shape of the seasonal variation from a bottom-up model to improve the forward price curve quoted on the Nordic power exchange

Regulated and unregulated Nordic retail prices

International Nuclear Information System (INIS)

Johnsen, Tor Arnt; Olsen, Ole Jess

2011-01-01

Nordic residential electricity consumers can now choose among a number of contracts and suppliers. A large number of households have continued to purchase electricity from the incumbent supplier at default contract terms. In this paper, we compare the situation for such passive customers. Danish default prices are regulated whereas default prices in the other countries are unregulated. Systematic price differences exist among the Nordic countries. However, as wholesale prices sometimes differ the gross margin is a more relevant indicator. Regulated gross margins are lower in Denmark than in Sweden but higher than in Norway and Finland. Because of market design Norwegian default contracts are competitive whereas Swedish contracts provide the retailer with some market power. We interpret the low Finnish margins as a result of municipal retailers continuing traditional pricing from the monopoly period. Danish margins are higher than the competitive Norwegian margins but are earned from a much lower level of consumption. The annually margins earned per consumer are very close in the two countries, which indicates that the Danish regulation is achieving its objective of approaching competitive prices. - Highlights: → Prices of active and passive Nordic residential electricity consumers are compared. → Active consumers get lower prices in Sweden but not in Norway. → Prices of passive consumers differ considerably among the four Nordic countries. → Danish regulated prices compare well with unregulated prices in the other countries. → Passive consumers in Finland have low prices compared with the other countries.

Regulated and unregulated Nordic retail prices

Energy Technology Data Exchange (ETDEWEB)

Johnsen, Tor Arnt, E-mail: tor.a.johnsen@bi.no [Norwegian School of Management BI, NO-0442 Oslo (Norway); Olsen, Ole Jess, E-mail: ojo@ruc.dk [Department of Environmental, Social and Spatial Change (ENSPAC), Roskilde University, Building 10.1, Universitetsvej 1, DK-4000, Roskilde (Denmark)

2011-06-15

Nordic residential electricity consumers can now choose among a number of contracts and suppliers. A large number of households have continued to purchase electricity from the incumbent supplier at default contract terms. In this paper, we compare the situation for such passive customers. Danish default prices are regulated whereas default prices in the other countries are unregulated. Systematic price differences exist among the Nordic countries. However, as wholesale prices sometimes differ the gross margin is a more relevant indicator. Regulated gross margins are lower in Denmark than in Sweden but higher than in Norway and Finland. Because of market design Norwegian default contracts are competitive whereas Swedish contracts provide the retailer with some market power. We interpret the low Finnish margins as a result of municipal retailers continuing traditional pricing from the monopoly period. Danish margins are higher than the competitive Norwegian margins but are earned from a much lower level of consumption. The annually margins earned per consumer are very close in the two countries, which indicates that the Danish regulation is achieving its objective of approaching competitive prices. - Highlights: > Prices of active and passive Nordic residential electricity consumers are compared. > Active consumers get lower prices in Sweden but not in Norway. > Prices of passive consumers differ considerably among the four Nordic countries. > Danish regulated prices compare well with unregulated prices in the other countries. > Passive consumers in Finland have low prices compared with the other countries.

Stochastic factor model for electricity spot price-the case of the Nordic market

International Nuclear Information System (INIS)

Vehvilaeinen, Iivo; Pyykkoenen, Tuomas

2005-01-01

This paper presents a stochastic factor based approach to mid-term modeling of spot prices in deregulated electricity markets. The fundamentals affecting the spot price are modeled independently and a market equilibrium model combines them to form spot price. Main advantage of the model is the transparency of the generated prices because each underlying factor and the dynamics between factors can be modeled and studied in detail. Paper shows realistic numerical examples on the forerunner Scandinavian electricity market. The model is used to price an exotic electricity derivative

Stochastic factor model for electricity spot price - the case of the Nordic market

International Nuclear Information System (INIS)

Vehvilainen, I.; Pyykkoenen, T.

2005-01-01

This paper presents a stochastic factor based approach to mid-term modeling of spot prices in deregulated electricity markets. The fundamentals affecting the spot price are modeled independently and a market equilibrium model combines them to form spot price. Main advantage of the model is the transparency of the generated prices because each underlying factor and the dynamics between factors can be modeled and studied in detail. Paper shows realistic numerical examples on the forerunner Scandinavian electricity market. The model is used to price an exotic electricity derivative. (author)

Investments and price formation in a liberalized electric power market

International Nuclear Information System (INIS)

Morthorst, P.E.

2005-05-01

How will the electric power prices in the Nordic electric power market develop if the generation capacity in the coming 10 to 15 years is increased considerably? And what are the conditions for investors to initiate new investments in power plants? Briefly speaking - these are the issues for the project that is reported in this report. The basis for the project has been the Nordic electric power market model and its capability to handle the future extension of the necessary generating capacity. The main issue in the project has been a quantitative analysis of what the prices in the Nordic electric power market will be in the future, depending on the size of new investments in the power generating capacity. Using the Balmorel model, a basic scenario until the year 2020 is made which contains the present decisions about capacity extension only. Up to 2010 this basic scenario can be seen as a probable development. For the period 2010 to 2020, however, the calculations can primarily be seen as illustrations of how the prices may develop, provided that no further investments are made. Thus, for the period 2010 - 2020 it is a 'worst case' that has been analysed. In the basic scenario several cases for the year 2015 are analysed, among others the consequences of wet and dry years and an unusually cold winter. The project also analyses how the price development impacts the profitability of new investments in power capacity, depending on several exogenous events, like use of more wind power and the price on the carbon dioxide market. The analyses present three cases: 1) A single investor not owing other power plants, 2) a single investor owing a number of power plants in which case a new plant will compete with him self, 3) two competing investors investing in the same known power plants. In all cases investments are made in a natural gas combined cycle plant producing both electric power and heat. Furthermore, the investor's own possibility to time his investment has been

Market price of risk implied by Asian-style electricity options and futures

International Nuclear Information System (INIS)

Weron, Rafal

2008-01-01

In this paper we propose a jump-diffusion type model which recovers the main characteristics of electricity spot price dynamics in the Nordic market, including seasonality, mean-reversion and spiky behavior. We show how the calibration of the market price of risk to actively traded futures contracts allows for efficient valuation of Nord Pool's Asian-style options written on the spot electricity price. Furthermore, we study the evolution of the market price of risk (and the risk premium) over a three year time period and compare the obtained results with those reported in the literature. (author)

Market price of risk implied by Asian-style electricity options and futures

Energy Technology Data Exchange (ETDEWEB)

Weron, Rafal [Hugo Steinhaus Center for Stochastic Methods, Institute of Mathematics and Computer Science, Wroclaw University of Technology, 50-370 Wroclaw (Poland)

2008-05-15

In this paper we propose a jump-diffusion type model which recovers the main characteristics of electricity spot price dynamics in the Nordic market, including seasonality, mean-reversion and spiky behavior. We show how the calibration of the market price of risk to actively traded futures contracts allows for efficient valuation of Nord Pool's Asian-style options written on the spot electricity price. Furthermore, we study the evolution of the market price of risk (and the risk premium) over a three year time period and compare the obtained results with those reported in the literature. (author)

The Nordic approach to market-based provision of ancillary services

International Nuclear Information System (INIS)

Kristiansen, Tarjei

2007-01-01

This paper presents an overview of the markets for ancillary services, which are regulated and traded differently within and across borders in the Nordic countries. We describe the services provided and their characteristics in terms of definition, participation, contracting approach and duration, selection of offers, and dispatch criteria. Further, we assess the costs, specify the payments, and discuss cost allocation, and we conclude with a policy discussion of ancillary services in the Nordic countries. (author)

Challenges when electricity markets face the investment phase

International Nuclear Information System (INIS)

Finon, Dominique; Johnsen, Tor Arnt; Midttun, Atle

2004-01-01

Deregulation of electricity industry in Europe has tended to start with a grace period of energy surplus inherited from the previously expansive coordinated economies and further amplified by better resource utilisation from extended international trade. The regulatory challenge has therefore primarily been to allocate existing generation to consumers in an efficient way. However, as energy demand increases, due to economic growth, the challenge of providing new capacity surfaces. The Nordic region, which has been a pioneer in internationalising and deregulating electricity, is now approaching this stage, ahead of most of the rest of Europe. While the Nordic case is characterised by specificities related to hydropower it also raises the more general challenge of capacity expansion under a deregulated market economy. The article therefore discusses how the Nordic investment challenges of today shed light on more generic challenges that may become more general European challenges of tomorrow. In a final section, the article discusses policy options available to address the investment/price-hike challenge. The argument is put forward that recursion to some degree of coordinated governance might seem necessary if solutions are confined within large-scale technical systems. However, within the context of a small-scale decentralised technological development, one may be more confident of competitive solutions. (Author)

Revisiting short-term price and volatility dynamics in day-ahead electricity markets with rising wind power

International Nuclear Information System (INIS)

Li, Yuanjing

2015-01-01

This paper revisits the short-term price and volatility dynamics in day-ahead electricity markets in consideration of an increasing share of wind power, using an example of the Nord Pool day-ahead market and the Danish wind generation. To do so, a GARCH process is applied, and market coupling and the counterbalance effect of hydropower in the Scandinavian countries are additionally accounted for. As results, we found that wind generation weakly dampens spot prices with an elasticity of 0.008 and also reduces price volatility with an elasticity of 0.02 in the Nordic day-ahead market. The results shed lights on the importance of market coupling and interactions between wind power and hydropower in the Nordic system through cross-border exchanges, which play an essential role in price stabilization. Additionally, an EGARCH specification confirms an asymmetric influence of the price innovations, whereby negative shocks produce larger volatility in the Nordic spot market. While considering heavy tails in error distributions can improve model fits significantly, the EGARCH model outperforms the GARCH model on forecast evaluations. (author)

Value of flexible consumption in the electricity markets

DEFF Research Database (Denmark)

Biegel, Benjamin; Hansen, Lars Henrik; Stoustrup, Jakob

2014-01-01

A transition from an oil and coal based energy system to a systems based on renewable and sustainable energy sources has begun in many countries throughout the developed world. As a pioneer, Denmark currently has a wind energy penetration of 30% in the electricity sector and an end goal of 100......% renewables in all energy sectors by 2050. The main elements in this transition are an increase in the wind energy production and electrification of main energy sectors such as transport and heating. Activation of flexible consumption in the electricity markets is believed to be one of the means to compensate...... for the growth of fluctuating renewables and the decrease of conventional power plants providing system-stabilizing services. In this work, we examine the requirements for flexible consumption to be active in the spot market and the regulating power market in the Nordic system and estimate the costs of entering...

Measuring international electricity integration: a comparative study of the power systems under the Nordic Council, MERCOSUR, and NAFTA

International Nuclear Information System (INIS)

Pineau, P.-O.; Hira, Anil; Froschauer, Karl

2004-01-01

Many regions of the world feel the pressure to interconnect electric power systems internationally. Regional integrations of the electricity sector have become part of free trade and common market initiatives, though the steps individual national jurisdictions take towards developing integrated systems vary. In this article, we review three regions concerned with common market initiatives and at different stages of integration processes that involve infrastructural, regulatory, and commercial decisions. First, we examine the North European countries in the Nordic Council, then countries in the Southern Cone of South America in MERCOSUR, and finally Mexico, the United States and Canada, linked under NAFTA. This comparative study highlights the potential, but also the many hurdles, that electricity sector integrations face. The study suggests a framework for measuring the level of electricity sector integration that could be applied to other regions

Electricity demand profile with high penetration of heat pumps in Nordic area

DEFF Research Database (Denmark)

Liu, Zhaoxi; Wu, Qiuwei; Nielsen, Arne Hejde

2013-01-01

This paper presents the heat pump (HP) demand profile with high HP penetration in the Nordic area in order to achieve the carbon neutrality power system. The calculation method in the European Standard EN14825 was used to estimate the HP electricity demand profile. The study results show...... there will be high power demand from HPs and the selection of supplemental heating for heat pumps has a big impact on the peak electrical power load of heating. The study in this paper gives an estimate of the scale of the electricity demand with high penetration of heat pumps in the Nordic area....

Investment behaviour in the Nordic power market; Investeringsadferd i det nordiske kraftmarkedet

Energy Technology Data Exchange (ETDEWEB)

Ingeberg, K; Johannessen, A

1995-11-15

This report is the result of a preliminary project which defines the frames for an application for a main project within the research programme EFFEKT. The composition, extent and time for new investments in the Nordic power market will have decisive influence on the profits of Norwegian water power resources in the future. At the same time the process around investments is very complex and is affected by economic, technological and political conditions. The report examines important prime movers for new investments and how the investment behaviour in the Nordic power market can be analysed in a main project. 25 refs., 1 figure

The Swedish electricity market and the role of Svenska Kraftnaet (rev. ed.)

International Nuclear Information System (INIS)

2001-11-01

production and consumption of electricity can be maintained throughout the country. Svenska Kraftnaet's objectives are; offering reliable, efficient and environmentally-adapted transmission of electricity on the grid, promoting an open and competitive Nordic electricity market, discharging its system responsibility cost-effectively and working for a robust and flexible electricity supply during times of crisis and war. Svenska Kraftnaet and Statnett - which has the system responsibility in Norway - jointly own the Nordic power exchange, Nord Pool, with headquarters in Oslo. Svenska Kraftnaet and Finnish system operator Fingrid jointly own a smaller power exchange for balance adjustment, EL-EX, located in Helsinki. Nord Pool and EL-EX work closely together - among other things acting as agents for each other's products, which complement one another. A decision has been taken to merge Nord Pool spot market and EL-EX to form a new company - Nord Pool Nordic Elspot - to be owned 20 % each by Nord Pool, Statnett, Svenska Kraftnaet and Fingrid and 10 % each by Eltra and Elkraft System, the Danish system operators. Nord Pool and Nord Pool Nordic Elspot will - from the customer's view - work as one market place. Svenska Kraftnaet's role on the open electricity market is to co-ordinate the trade in electricity with the physical transmission and balancing of electricity in Sweden. Svenska Kraftnaet introduced a new tariff system for the grid on 1 January 1995. The objective was to: promote competition on the electricity market, by being sufficiently flexible to allow new types of customers and contracts offer a simple, open and predictable tariff, so that the players can calculate their transmission costs cover its own costs for managing and operating the national grid provide the players with financial and technical signals as regards losses, bottlenecks, etc

Prices and costs of irregularity in renewable resources in the liberalized electricity markets

International Nuclear Information System (INIS)

Menanteau, Ph.; Finon, D.

2004-01-01

The problems raised by incorporating irregular production are of a technical nature (risk of non-availability during peak demand, the requirements for additional reserves) but the electricity markets methods of operation impose economic penalties, which greatly exceed these additional technical costs. In this document, the authors examine the nature of the technical problems posed by irregularity of production and the additional costs resulting from this, and then analyse the origins of the economic penalties that the operation of liberalized electricity markets impose, taking in particular the example of the British market, the New Energy Trading Arrangement (NETA). It would appear that the markets' operating rules may conflict, in certain cases, with the targets for promoting electricity generation from renewable resources. Two types of solutions can therefore be envisaged: a set of rules to limit the impact on irregular production or collective handling of the adjustment to production from renewable resources as already exists in the Nordic electricity markets. (authors)

Coordination of Nordic system operators in the electric power market - profit from improved capacity utilization and a more flexible division into price zones; Koordinering av nordiske systemoperatoerer i kraftmarkedet - gevinster ved bedret kapasitetsutnyttelse og mer fleksibel prisomraadeinndeling

Energy Technology Data Exchange (ETDEWEB)

Bjoerndal, Mette; Joernsten, Kurt

2001-08-01

This report evaluates the possible profits of establishing a common system operator function in the Nordic electric power market. The main focus is placed on how to deal with congestion in the transmission grid. To estimate possible profits from a better utilization of the resources in the Nordic grid, the authors have analyzed socio-economic profits for several load scenarios. A simplified model of the Nordic stock area was used in the calculations. The existence of two methods of dealing with congestion in the grid may lead to reduced capacity utilization and to greater price differences than necessary. The examples show that ''indirect'' congestion control may be very expensive and that considerable cost reduction can be achieved by improved exploitation of congestion. This implies that if the Nordic area is divided into price zones, it is advantageous to regard the grid as an entity independent of national borders and system operators and to let the real transmission limitations determine the price zoning.

Emission Permits trade between the Nordic and Baltic Countries

Energy Technology Data Exchange (ETDEWEB)

Alm, Leif Kristian

2000-05-01

A bottom-up technology oriented model of the energy systems in the Nordic and Baltic countries have been constructed and used for analysing an optimal set of energy and emission trading within the region. The model used is MARKAL, which has been developed within the IEA-ETSAP. The analyses are based on national emission levels agreed on in the Kyoto protocol (and the following burden sharing negotiations within the European Union), and with an additional strengthening after 2010. Only energy related CO{sub 2} emissions are explicitly considered. Nuclear power in Sweden is assumed to be phased out. The results show that especially Norway and Sweden have large abatement costs when acting alone, whale the Baltic countries will probably not need to take domestic actions due to the Kyoto protocol if they act alone, as the restructuring of their economies in the beginning of the 1990ties cut emissions (and their economies) dramatically. It is shown that emission trading among the Nordic and Baltic countries can reduce abatement costs among the Nordic countries significantly, possibly down to a level equivalent to a world market (Annex I) permit price. Extending the Nordic common electricity market to Balticum will have minor influence on overall energy system costs. There is no pronounced direction for net electricity flow between the Nordic and Baltic countries. High marginal costs during peak hours in Balticum indicate that imports of Nordic hydro power during peak-hours could be a cost-effective option. This possibility could be implemented with a subsea AC/DC connection between Sweden and Latvia. It is politically viable to develop more hydropower in Norway, this country will be the major electricity exporter in the region, while Sweden will be the main importer. Changing scenario assumptions, i.e. no more Norwegian hydropower, but life extension of Swedish nuclear power, could change this picture. (author)

Research document no. 24. The integration of european electric markets: from the national markets juxtaposition to the establishment of a regional market

International Nuclear Information System (INIS)

Finon, D.

2000-11-01

After the transcription of the electricity directive in national legislations, the European electricity market appears to be a vast set of juxtaposed markets which are weakly connected at the level of their wholesale contracts compartment. Referring to the technological peculiarities of electricity as a commodity, the paper identifies the direct conditions of regional integration of the electricity markets, those which would favour cross-border trade and allow to be near the normal functioning of a regional commodity market. The infrastructure network dependence and the need of a stringent technical coordination necessitate to unify the operation of the different systems and the rules of access, or at the least to come near this unification by strong coordination. A second major condition, which is not fully debated, is the increasing connexion of short-term markets, via daily physical trade and emergence of a European financial market, which could trade various standardised contracts referring to a single hourly spot price, or to prices in various delivery points. To reach such an integration, two paths are possible: either concentration into one single organised power exchange as the Nordic pool, or rules harmonization of the various power exchanges which would be a minimal requirement to allow arbitrations between them. (author)

The Nordic power market: Are there alternatives to expensive clearing?

International Nuclear Information System (INIS)

Nerdrum, Per Kaare; Poulsson, Christian

2003-01-01

The Enron scandal of 2002 has set focus on counter party risk in the Nordic power market and is an important cause of increased clearing of bilateral financial power contracts. The article discusses whether expensive clearing is always the best tool for dealing with counter party risk

The Swedish electricity market and the role of Svenska Kraftnaet (rev. ed.)

Energy Technology Data Exchange (ETDEWEB)

NONE

2001-11-01

of balance between the production and consumption of electricity can be maintained throughout the country. Svenska Kraftnaet's objectives are; offering reliable, efficient and environmentally-adapted transmission of electricity on the grid, promoting an open and competitive Nordic electricity market, discharging its system responsibility cost-effectively and working for a robust and flexible electricity supply during times of crisis and war. Svenska Kraftnaet and Statnett - which has the system responsibility in Norway - jointly own the Nordic power exchange, Nord Pool, with headquarters in Oslo. Svenska Kraftnaet and Finnish system operator Fingrid jointly own a smaller power exchange for balance adjustment, EL-EX, located in Helsinki. Nord Pool and EL-EX work closely together - among other things acting as agents for each other's products, which complement one another. A decision has been taken to merge Nord Pool spot market and EL-EX to form a new company - Nord Pool Nordic Elspot - (abstract truncated)

Bioenergy `97: Nordic Bioenergy Conference, market, environment and technology; Bioenergi `97: nordisk bioenergikonferanse, marked, miljoe og teknikk

Energy Technology Data Exchange (ETDEWEB)

NONE

1997-12-31

(Leading abstract). The conference ``Bioenergy `97: Nordic Bioenergy Conference, market, environment and technology`` took place in Oslo, Norway, 7-8 Oct 1997. The conference papers are grouped under three headings: (1) The nordic energy market. 12 papers. (2) Production and sale of biofuels. 8 papers. (3) Conversion and utilization of biofuels. With subsections New technologies, 4 papers, and Power/heat production from biofuels, 4 papers

Bioenergy `97: Nordic Bioenergy Conference, market, environment and technology; Bioenergi `97: nordisk bioenergikonferanse, marked, miljoe og teknikk

Energy Technology Data Exchange (ETDEWEB)

NONE

1998-12-31

(Leading abstract). The conference ``Bioenergy `97: Nordic Bioenergy Conference, market, environment and technology`` took place in Oslo, Norway, 7-8 Oct 1997. The conference papers are grouped under three headings: (1) The nordic energy market. 12 papers. (2) Production and sale of biofuels. 8 papers. (3) Conversion and utilization of biofuels. With subsections New technologies, 4 papers, and Power/heat production from biofuels, 4 papers

Locating Nordic Noir

DEFF Research Database (Denmark)

Hansen, Kim Toft; Waade, Anne Marit

such as Beck, The Killing, Trapped and The Bridge as well as a range of other important Nordic Noir cases. The book positions the development of Nordic Noir on the global market for popular television drama and places the international attention towards Nordic crime dramas within regional development of drama...

Market Power in Hydro-Thermal Supply

International Nuclear Information System (INIS)

Edin, Karl-Axel

2006-12-01

Despite having had a deregulated electricity market in Sweden for over ten years we still need to increase our understanding as to how deregulated electricity markets actually work and how possible problems are to be solved. One question that is always in focus is if the competition between generators in the Nordic electricity market really works the way it was intended. Many argue that the concentration in ownership of generation plants already has gone too far. Together with joint ownership in nuclear facilities and barriers for entrance, critics say that this has resulted in higher electricity prices than necessary. In this report different methods to (ex ante) study potential possibilities for generating firms to influence the electricity price (market power) and (ex post) discover possible manipulation through analysing the spot price and other observed factors on the electricity market are analysed. The purpose of the longer underlying paper is to give a comprehensive treatment of the electricity market with storage, i.e. hydro power, with an auction market organisation and to test the models on the Nordic market in order to explore the explanatory power of auction market theory and the theory of contestable market. The main theoretical effort in the paper concerns auction theory with inventories. The paper develops an inter-temporal auction model of a thermal-hydro power market. Parallel to the derivation of the basic equations a numerical model is developed in order to illustrate the results of the model. Section 2 of the present paper summarizes the basic equations (derived in the longer paper) for an inter-temporal auction thermal-hydro market. Section 3 contains the illustrations of solutions to equations for some stylized markets. In section 4 the auction model is tested on the Nordic market

Survey of system responsibility in the Nordic countries. Final report

International Nuclear Information System (INIS)

2005-02-01

In September 2004 the Nordic Council of Ministers asked Nordel to perform some tasks and present the results to the Council on 1 March 2005. One of the tasks is to survey how system responsibility is defined and executed in the different Nordic countries. According to the Nordic Council of Ministers, the survey shall illuminate similarities and differences between the countries and assess the reasons for the differences. Nordel is asked to present a joint view system responsibility in the Nordic countries. Among other things, the responsibility for the system operators and the participants in the market shall be defined. The definition shall also include the distribution of costs between costs for network business and costs for business in competition. This shall be done in a way that creates a common platform for the further harmonisation work and continuous positive development of the Nordic electricity market. It is also important to identify the need for changes in e.g. legislation and guidelines in the different countries as a consequence of an implementation of a common definition in the Nordic countries. Areas to be included in the task are among others, balance settlement, security of supply, congestion management and system services. (BA)

Day-Ahead Energy Planning with 100% Electric Vehicle Penetration in the Nordic Region by 2050

DEFF Research Database (Denmark)

Liu, Zhaoxi; Wu, Qiuwei; Nielsen, Arne Hejde

2014-01-01

This paper presents the day-ahead energy planning of passenger cars with 100% electric vehicle (EV) penetration in the Nordic region by 2050. EVs will play an important role in the future energy systems which can both reduce the greenhouse gas (GHG) emission from the transport sector and provide...... demand side flexibility required by the smart grids. On the other hand, the EVs will increase the electricity consumption. In order to quantify the electricity consumption increase due to the 100% EV penetration in the Nordic region to facilitate the power system planning studies, the day-ahead energy...

Grid investments in a Nordic perspective. Report to EMG

Energy Technology Data Exchange (ETDEWEB)

2010-05-15

In a letter of 20 November 2008, the Electricity Market Group (EMG) under the Nordic Council of Ministers requested NordREG to carry out an assignment related to transmission network investments in the Nordic countries. The assignment to NordREG was divided into two tasks; to map the differences in the legislation and licensing processes in the Nordic countries and to analyse these differences and possible ways of financing common network investment projects. In the second half of 2009 the consultant Econ Poeyry was engaged to support in the finalisation of this project, mainly concerning possibilities for Nordic financing. The final text is however the sole responsibility of the task force. A draft version of the final report was delivered to EMG in December 2009. At the same time the report was sent to the Nordic TSOs together with an invitation to a workshop at Gardermoen on 26 January 2010. The comments from the TSOs are included in appendix 2 of the report

Benefits from coordinating congestion management-The Nordic power market

International Nuclear Information System (INIS)

Bjorndal, Mette; Joernsten, Kurt

2007-01-01

We consider the possibility of improving the utilization of the capacity of the Nordic transmission grid, by improving on the methods for congestion management. We use a simplified model of the Nordic power market, and different load-scenarios are developed in order to illustrate the effects. By improving the coordination of the system operator function, we may achieve that the actual bottlenecks, both as regards to the location and capacity, form the basis for the definition of price areas. This may result in a better partition of the grid, not necessarily following the borders between the control areas of today's system operators. We also consider solving intra zonal bottlenecks 'directly', through the area prices and 'indirectly' by 'moving' internal capacity constraints to the borders between price areas. The examples illustrate that this 'indirect' congestion management may be costly, and result in larger price differences than necessary

Development of a Common Nordic Balance Settlement

Energy Technology Data Exchange (ETDEWEB)

NONE

2006-02-15

NordREG finds it essential for the customers that a common integrated end-user electricity market is developed and that all end-users are able to take part in the Nordic market. A common Nordic balance settlement is one important part of such a change. However, attention has to be paid to the comments that a badly designed common system is worse than well-designed national systems. It is thus important that the change to a common balance settlement is so thoroughly investigated that the common system gives a basis for a well-functioning market. An important basis for such a change is an agreed vision for the process: The present different systems for balance settlement shall by the year 2010 be replaced by a common Nordic balance settlement. This means that: It will be possible for a supplier to sell to the whole Nordic market from one legal entity and using only one system for customer management and reporting. The common Nordic balance settlement will be designed in such a way that it contributes to a well functioning market. This means for example that it will be attractive even for small suppliers and some end-users to be balance responsible parties. It is feasible that the first phase is focused on those present differences that are most decisive for fulfilment of the vision. NordREG recommends that the following issues shall be discussed and agreed in co-operation between NordREG, Nordel and relevant stakeholders in the first phase: The definition shall include how the common Nordic balance settlement shall interact with the balance control and the balance regulation of the interconnected power system and the balance settlement between countries performed by the TSOs. The definition should include the cost-base for common Nordic balance settlement in relation to other system responsibility costs. The core activities of system responsibility have also been analyzed by NordREG. It is important to find a balance between inter alia the need for simplicity and the

Development of a Common Nordic Balance Settlement

International Nuclear Information System (INIS)

2006-02-01

NordREG finds it essential for the customers that a common integrated end-user electricity market is developed and that all end-users are able to take part in the Nordic market. A common Nordic balance settlement is one important part of such a change. However, attention has to be paid to the comments that a badly designed common system is worse than well-designed national systems. It is thus important that the change to a common balance settlement is so thoroughly investigated that the common system gives a basis for a well-functioning market. An important basis for such a change is an agreed vision for the process: The present different systems for balance settlement shall by the year 2010 be replaced by a common Nordic balance settlement. This means that: It will be possible for a supplier to sell to the whole Nordic market from one legal entity and using only one system for customer management and reporting. The common Nordic balance settlement will be designed in such a way that it contributes to a well functioning market. This means for example that it will be attractive even for small suppliers and some end-users to be balance responsible parties. It is feasible that the first phase is focused on those present differences that are most decisive for fulfilment of the vision. NordREG recommends that the following issues shall be discussed and agreed in co-operation between NordREG, Nordel and relevant stakeholders in the first phase: The definition shall include how the common Nordic balance settlement shall interact with the balance control and the balance regulation of the interconnected power system and the balance settlement between countries performed by the TSOs. The definition should include the cost-base for common Nordic balance settlement in relation to other system responsibility costs. The core activities of system responsibility have also been analyzed by NordREG. It is important to find a balance between inter alia the need for simplicity and the

Large Scale Deployment of Electric Vehicles (EVs) and Heat Pumps (HPs) in the Nordic Region

DEFF Research Database (Denmark)

Liu, Zhaoxi; Wu, Qiuwei; Petersen, Pauli Fríðheim

This report describes the study results of large scale deployment of electric vehicles (EVs) and heat pumps (HPs) in the Nordic countries of Denmark, Norway, Sweden and Finland, focusing on the demand profiles with high peneration of EVs and HPs in 2050......This report describes the study results of large scale deployment of electric vehicles (EVs) and heat pumps (HPs) in the Nordic countries of Denmark, Norway, Sweden and Finland, focusing on the demand profiles with high peneration of EVs and HPs in 2050...

The EU's major electricity and gas utilities since market liberalization

International Nuclear Information System (INIS)

Schuelke, Christian

2011-06-01

A major change has taken place in the company structure of the European electricity and gas markets. Twenty years ago, national or regional monopolies dominated the markets and there was strictly no competition between utilities. But since the liberalization of EU energy markets began in the 1990's, companies like E.ON, GDF Suez, EDF, Enel, and RWE have become European giants with activities in a large number of Member States. The advocates of market liberalization did not expect, or even intend, the emergence of a small number of large utilities that control an increasing part of the EU market. Some observers already claim that liberalization has led to an oligopoly with detrimental consequences for competition. Based on extensive background research, this book presents a fact-based analysis of the changes in the European utility sector since the 1990's. Case studies of the seven largest utilities illustrate how companies adapted their strategies to the changing market environment. The author underlines diverging choices and common trends like geographic expansion into new markets via mergers and acquisitions or diversification of business activities with the aim of using synergies between electricity and gas. Contents: Executive Summary. Introduction. Seven Case Studies of Changing Strategies of Major European Energy Utilities since Market Liberalization (E.ON, GDF Suez, EDF, Enel, RWE, Iberdrola, Vattenfall, Other European Utilities). Overview of Major National and Regional Electricity and Gas Market in the EU (Germany, France, United Kingdom, Italy, Spain, Nordic, Belgium and the Netherlands, Central and Eastern Europe). Conclusions. Annex. Bibliography

The role of Denmark in the Nordic power market; Danmarks rolle i det nordiske kraftmarkedet

Energy Technology Data Exchange (ETDEWEB)

NONE

1996-03-07

This report discusses whether Danish power producers are subject to any technological, political or economic restrictions which may influence their power trade with the other Nordic countries. Since Danish environmental accounts are corrected for foreign power trade, there are at present no limitations on the exchange of power. But the possibility of a more restrictive environmental policy may cause the producers to adapt their activities to the aims of the authorities. To illustrate the significance of possible restrictions on power trade between Denmark and the other Nordic countries, two alternative model calculations have been done. In the first, it is assumed that Danish producers may export freely. In the second, it is assumed that they are subject to neutral energy exchange. For free exploitation of Danish surplus capacity, the power consumption is estimated to 10 TWh more than for neutral energy exchange. The Swedish consumption will rise. The flexibility of the Danish system has been analysed. Certain technical properties of the Danish system may sometimes restrict import from Norway. Due to high costs of shutdowns and start-ups of thermal power plants, the speed with which Danish producers can adjust their schedule is limited. Power export from Norway and Sweden beyond top load periods must therefore be expected to last before Danish agents will replace local production with hydro electric power. The calculations demonstrate very clearly the crucial role of Denmark in the development of the Nordic power market. 10 refs., 22 figs.

Green Nanotechnology in Nordic Construction - Eco-innovation strategies and Dynamics in nordic Window Chains

DEFF Research Database (Denmark)

Andersen, Maj Munch; Sandén, Björn A.; Palmberg, Christopher

This project analyzes Nordic trends in the development and industrial uptake of green nanotechno-logy in construction. The project applies an evolutionary economic perspective in analyzing the innovation dynamics and firm strategies in the window value chains in three Nordic countries, Denmark......, Finland and Sweden. Hence the project investigates two pervasive parallel market trends: The emergence of the green market and the emergence of nanotechnology. The analysis investigates how a traditional economic sector such as the construction sector reacts to such major trends. Conclusions are multiple...... of nanotechnology in the construction sector in the Nordic countries we do find quite a high number of nanotech applications in the Nordic window chains. Eco-innovation is influencing strongly on the nanotech development. We see several examples of nano-enabled smart, multifunctional green solutions in the Nordic...

Joint balance handling in the Nordic Countries

International Nuclear Information System (INIS)

2005-01-01

In September 2002 Nordel introduced new principles for disposing of regulation power for balancing production and consumption of electricity. The new principles imply that the regulation power in the joint Nordic power system is better utilized, and that the settlement of imbalances between the countries follows joint rules. The settlement of imbalances in the individual countries follows different principles but Nordel is looking into the possibilities of a harmonization. EU's most recent draft of a strategy report on development of the power market points among other things towards a joint regulation power market as a tool against misuse of market power. (BA)

On wind power in the Nordic countries

International Nuclear Information System (INIS)

Nilsson, Lars J.

1993-01-01

The purpose of this article is to discuss the prospects for a large scale introduction of wind power in the Nordic countries especially with respect to the consequences for small independent power producers of the ongoing and planned deregulation of the electricity sector. The recoverable wind resources are great and integration costs are small due to the good load following capability of the existing Swedish and Norwegian hydroelectric capacity. The structure of the present electricity system and the current principles for electricity trade are reviewed. To what extent wind power will be the technology of choice for capacity replacement and expansion depends on how intermittent power will be valued on the future electricity market. In a deregulated market, wind power may be priced below its value unless appropriate pricing mechanisms are developed. Market reforms should therefore include consideration of the large contribution that wind energy must make in a future electricity system which, in addition to being economically efficient, is compatible with broader societal goals. 47 refs, 2 figs

EU emission trading scheme and the effect on the price of electricity

International Nuclear Information System (INIS)

2004-01-01

The Electricity Market Working Group and the Climate Change Policy Working Group of the Nordic Council of Ministers, has commissioned ECON Analysis to prepare this report. The report analyses the demand and supply of GHG emission allowances and the price of emission allowances for the period 2005-2007 and 2008-2012 and the effect on the electricity price in the Nordic electricity market. The demand for emissions allowances has then been estimated for different scenarios, with different assumption on burden sharing between sectors and international participation and the supply of emission allowances is determined by the marginal abatement costs. Based on available information on abatement costs the supply of allowances is then estimated. The market balance between the demand and supply for allowances then determines the price of emission allowances. The effect on the electricity price is simulated with ECON's model for the Nordic power market to quantitatively estimate the effect from emissions trading on the electricity price, production, consumption, trade, etc. (BA)

Energy Flexibility of The Commercial Greenhouse Growers, The Potential and Benefits of Participating in The Electricity Market

DEFF Research Database (Denmark)

Ma, Zheng; Jørgensen, Bo Nørregaard

2018-01-01

Commercial greenhouses can provide energy flexibility with artificial lighting usage and information and communications technology support. Therefore, commercial greenhouse growers can potentially play an important role in the electricity market as a flexibility service provider....... With the application of a climate control software- DynaLight NG, this paper takes Danish commercial growers and the Nordic electricity regulating market as an example, to investigate the market potential with two business models: 1) commercial greenhouse growers directly participate in the regulating market, 2......) to reduce balance responsible parties’ imbalance errors. Two calculations are formulated to evaluate the monetary benefits for the commercial greenhouse growers’ participation in the two business models. The results show that: 1) one big commercial greenhouse grower might get around 55,000 DKK...

Investments and price formation in a liberalized electric power market; Investering og prisdannelse pae et liberaliseret elmarked

Energy Technology Data Exchange (ETDEWEB)

Morthorst, P.E.

2005-05-01

How will the electric power prices in the Nordic electric power market develop if the generation capacity in the coming 10 to 15 years is increased considerably? And what are the conditions for investors to initiate new investments in power plants? Briefly speaking - these are the issues for the project that is reported in this report. The basis for the project has been the Nordic electric power market model and its capability to handle the future extension of the necessary generating capacity. The main issue in the project has been a quantitative analysis of what the prices in the Nordic electric power market will be in the future, depending on the size of new investments in the power generating capacity. Using the Balmorel model, a basic scenario until the year 2020 is made which contains the present decisions about capacity extension only. Up to 2010 this basic scenario can be seen as a probable development. For the period 2010 to 2020, however, the calculations can primarily be seen as illustrations of how the prices may develop, provided that no further investments are made. Thus, for the period 2010 - 2020 it is a 'worst case' that has been analysed. In the basic scenario several cases for the year 2015 are analysed, among others the consequences of wet and dry years and an unusually cold winter. The project also analyses how the price development impacts the profitability of new investments in power capacity, depending on several exogenous events, like use of more wind power and the price on the carbon dioxide market. The analyses present three cases: 1) A single investor not owing other power plants, 2) a single investor owing a number of power plants in which case a new plant will compete with him self, 3) two competing investors investing in the same known power plants. In all cases investments are made in a natural gas combined cycle plant producing both electric power and heat. Furthermore, the investor's own possibility to time his

77 FR 11531 - Electric Quarterly Reports, Acacia Energy, Inc., et al.; Notice of Revocation of Market-Based...

Science.gov (United States)

2012-02-27

...-000 Nordic Marketing of Illinois, Docket No. ER03-888-000 L.L.C. Nordic Marketing of Michigan, Docket No. ER04-264-000 L.L.C. Nordic Marketing, L.L.C Docket No. ER00-774-000 Pirin Solutions, Inc Docket... (including market-based power sales, cost-based power sales, and transmission service) and providing...

Regulations and monitoring of the financial part of the electricity market

International Nuclear Information System (INIS)

Eriksson, Svante; Eliasson, Torben; Jenssen Aasmund

2001-11-01

not possible. Today less than ten Swedish power sector companies hold a licence to conduct securities operations, while another five or so have applied for a licence. The Swedish Financial Supervisory Authority is responsible for supervising the securities markets and monitoring compliance. So far, however, the authority seems to have given low priority to the financial part of the electricity market. The European Council Directive on investment services in the securities field does not apply to commodity derivatives. This means that the regulation of the electricity derivatives market differs between European countries. Norway, for instance, has a less strict regulation than Sweden. A major difference is that Norwegian companies that offer commodity derivatives don't need a special licence. ECON ends the report, by listing certain questions that we feel justify further investigation, for example: In what way is competition affected by the fact that different countries within the common Nordic electricity exchange area have different financial regulations? What are the costs of having different financial regulations, in different countries within the common Nordic electricity exchange area? Since Nord Pool in Norway soon will be authorised to act as a securities exchange: What differences are there between Swedish and Norwegian exchange regulations? How do these differences affect Nord Pool? Are there financial contracts traded bilaterally between single parties that are not considered to be financial instruments? If so, what are the consequences? Are there on the Swedish market actors without licences offering investment services of a kind that really should require a licence? Do the monitoring activities of the Swedish and the Norwegian financial supervisory authorities differ in any significant way?

Green nanotechnology in Nordic Construction: Eco-innovation strategies and Dynamics in Nordic Window Value Chains

DEFF Research Database (Denmark)

Andersen, Maj Munch

2010-01-01

This project analyzes Nordic trends in the development and industrial uptake of green nanotechno-logy in construction. The project applies an evolutionary economic perspective in analyzing the innovation dynamics and firm strategies in the window value chains in three Nordic countries, Denmark......, Finland and Sweden. Hence the project investigates two pervasive parallel market trends: The emergence of the green market and the emergence of nanotechnology. The analysis investigates how a traditional economic sector such as the construction sector reacts to such major trends. Conclusions are multiple...... of nanotechnology in the construction sector in the Nordic countries we do find quite a high number of nanotech applications in the Nordic window chains. Eco-innovation is influencing strongly on the nanotech development. We see several examples of nano-enabled smart, multifunctional green solutions in the Nordic...

How competitive are EU electricity markets? An assessment of ETS Phase II

International Nuclear Information System (INIS)

Castagneto-Gissey, Giorgio

2014-01-01

This paper studies the interactions between electricity and carbon allowance prices in the year-ahead energy markets of France, Germany, United Kingdom and the Nordic countries, during Phase II of the EU ETS. VAR and Granger-causality methods are used to analyze causal interfaces, whereas the volatility of electricity prices is studied with basic and asymmetric AR-GARCH models. Among the main results, the marginal rate at which carbon prices feed into electricity prices is shown to be ca. 135% in the EEX and Nord Pool markets, where electricity and carbon prices display bidirectional causality, and 109% in the UK. Therefore, generators in these markets internalized the cost of freely allotted emission allowances into their electricity prices considerably more than the proportionate increase in costs justified by effective carbon intensity. Moreover, electricity prices in France are found to Granger-cause the carbon price. This study also shows how European electricity prices are deeply linked to coal prices among other factors, both in terms of levels and volatility, regardless of the underlying fuel mix, and that coal was marginally more profitable than gas for electricity generation. EU policies aimed at increasing the carbon price are likely to be crucial in limiting the externalities involved in the transition to a low-carbon system. - Highlights: • The interactions between electricity and carbon prices during Phase II are investigated. • This work also studies the determinants of EU electricity price levels and volatilities. • Nord Pool, APX UK and EEX carbon cost pass-through rates emphasize low electricity market competitiveness. • Powernext electricity prices Granger-cause the Phase II carbon price. • Coal was marginally more profitable than gas during Phase II

Outcomes, challenges and prospects for the Nordic network regulations

International Nuclear Information System (INIS)

Agrell, Per J.; Koivuranta, Kari; Lorenz, Mathias

2005-01-01

The deregulation of the electricity sector in the NordPool area has largely been a success story in terms of market organization and responsiveness. The joint market and the tight cooperation among the TSOs serve as an international benchmark in terms of transparency and market efficiency. However, the regulation models for the residual distribution network monopolies are surprisingly heterogeneous in terms of character, instruments and application. For primarily historical and institutional reasons, the Nordic countries have chosen different methods to regulate the sector, with interesting differences also in industrial structure. Whereas Finland and Sweden long maintained a 'light-handed' ex post approach based on enforced self-regulation, Norway adopted an ex ante increasingly high-powered revenue cap regime based on frontier analysis methods (DEA). Denmark, where the sector is dominated by cooperatively owned distributors, opted for high-powered model based on simple regression tools (COLS). In this paper, we present findings from a joint Nordic study on the challenges to the heterogeneous regulation models in the presence of increasing consolidation and supra-national regulatory convergence from the IEM directives. Based on an analysis based on surveys among stakeholders in the four countries, we investigate the feasibility and potential properties of a common Nordic regulation model. The paper is illustrated with a new Nordic operating efficiency analysis for the area, based on frontier analysis, showing the relative and absolute cost differences in the current decentralized regime. (Author)

Labor Market Institutions, Mobility, and Dualization in the Nordic Countries

Directory of Open Access Journals (Sweden)

Jørgen Svalund

2013-01-01

Full Text Available Comparing the Nordic countries, this article examines different combinations of permanent and temporary employment protection legislation, and whether such differences are reflected in patterns of labor market transitions. We find higher levels of transitions from unemployment to temporary contracts in Sweden and Finland, with lax regulation of temporary contracts and strict regulation of permanent contracts. Further, temporary employees are integrated into permanent contracts in countries with lax (Denmark or strict (Norway regulation of permanent contracts, while this is not the case in Finland and Sweden. For these countries, the study indicates a certain degree of labor market duality, with low mobility from temporary to permanent employment contracts.

An empirical study of real estate stock return behavior on the Nordic markets : – A 2003-2013 study

OpenAIRE

Mäki, David; Lundström, Martin

2013-01-01

The financial crisis has made the stock markets a very turbulent place. Investors have therefore begun searching for stable and profitable investments. Nordic real estate has for decades steadily increased in value and the stocks of real estate companies are said to be less risky than the market. This has led to a view of them being a safe haven for risk adverse investors. Very few empirical studies have been done on how these supposedly safe stocks actually behave in the Nordic countries. Th...

Integrating intermittent energy sources in liberalized electricity markets: from technical costs to economic penalties as a result of market rules

International Nuclear Information System (INIS)

Menanteau, Ph.; Finon, D.; Lamy, M.L.

2003-06-01

With the aim of preventing climatic change and ensuring the security of energy supplies, the recent European Directive on renewable energy production sources is aimed at bringing about a very substantial increase in electricity production from renewable sources in Europe by the 2010 horizon. Generally speaking, production of electricity from renewable sources will be assured by biomass and wind, and to a lesser extent by micro hydro, technologies whose characteristics are very different from the point of view of their integration into the electricity system. Their inclusion in the electricity systems will cause problems because of the intermittent nature of the production, a factor that does not enter into the paradigms of producers, system operators or regulators. The problems raised by the integration of intermittent production are technical in nature (risk of non-availability in peak periods, the need for additional reserves) and will incur adjustment costs, but the way in which the electricity markets function will impose economic penalties generally more substantial than the added technical costs. In this paper are examined in succession: (i) the additional costs raised by intermittence; (ii) the economic penalties imposed by the operating rules of de-regulated electricity markets with electricity production from renewable sources included, with particular reference to the case of the British and Nordic markets; and (iii) an analysis of the options that could limit the gap between the additional cost of intermittent production for the system and the adjustment surcharges imposed by the electricity markets, with the aim of reducing the tension between the deregulation of the electricity market and promoting the development of renewable energy sources. (A.L.B.)

Day-Ahead Energy Planning with 100% Electric Vehicle Penetration in the Nordic Region by 2050

Directory of Open Access Journals (Sweden)

Zhaoxi Liu

2014-03-01

Full Text Available This paper presents the day-ahead energy planning of passenger cars with 100% electric vehicle (EV penetration in the Nordic region by 2050. EVs will play an important role in the future energy systems which can both reduce the greenhouse gas (GHG emissions from the transport sector and provide the demand side flexibility required by smart grids. On the other hand, the EVs will increase the electricity consumption. In order to quantify the electricity consumption increase due to the 100% EV penetration in the Nordic region to facilitate the power system planning studies, the day-ahead energy planning of EVs has been investigated with different EV charging scenarios. Five EV charging scenarios have been considered in the energy planning analysis which are: uncontrolled charging all day, uncontrolled charging at home, timed charging, spot price based charging all day and spot price based charging at home. The demand profiles of the five charging analysis show that timed charging is the least favorable charging option and the spot priced based EV charging might induce high peak demands. The EV charging demand will have a considerable share of the energy consumption in the future Nordic power system.

Non-market forest ecosystem services and decision support in Nordic countries

DEFF Research Database (Denmark)

Filyushkina, Anna; Strange, Niels; Löf, Magnus

2016-01-01

The need to integrate non-market ecosystem services into decision-making is widely acknowledged. Despite the exponentially growing body of literature, trade-offs between services are still poorly understood. We conducted a systematic review of published literature in the Nordic countries (Denmark......, Norway, Sweden and Finland) on the integration of non-market forest ecosystem services into decision-making. The aim of the review was two-fold: (1) to provide an overview of coverage of biophysical and socio-economic assessments of non-market ecosystem services in relation to forest management; (2......) to determine the extent of the integration of biophysical and socio-economic models of these services into decision support models. Our findings reveal the need for wider coverage of non-market ecosystem services and evidence-based modelling of how forest management regimes affect ecosystem services...

Nordic Noir Production Values

DEFF Research Database (Denmark)

Waade, Anne Marit; Jensen, Pia Majbritt

2013-01-01

In this article the authors argue that Nordic noir constitutes a set of production values utilised and conceptualised to make Danish television series attractive in the international market. The idea of production values is embedded into a media industrial context where market principles of target...... by relating the specific Nordic noir production values present in the two series to changing conditions in Danish television drama production, in particular the internationalisation of DR’s Drama Division....

Adjustable consumption participating in the electricity markets

DEFF Research Database (Denmark)

Biegel, Benjamin; Hansen, Lars Henrik; Stoustrup, Jakob

2013-01-01

are aggregated and utilized for spot price optimization and to participate in the regulating power market. In this case study we examine in detail the implications of the given regulatory requirements for market participation in the Nordic system and compare this with estimates of the revenue that can...... be generated via market participation. The case study shows that the profit in the current system is very limited but that planned regulatory changes will make market participation significantly more attractive....

Parents' labour market participation as a predictor of children's health and wellbeing: a comparative study in five Nordic countries

DEFF Research Database (Denmark)

Reinhardt Pedersen, C; Madsen, Mette

2002-01-01

OBJECTIVE: To study the association between parents' labour market participation and children's health and wellbeing. DESIGN: Parent reported data on health and wellbeing among their children from the survey Health and welfare among children and adolescents in the Nordic countries, 1996. A cross...... significant. Health outcomes and parents' labour market participation were associated in all five countries. CONCLUSIONS: Children in families with no parents employed in the past six months had higher prevalence of ill health and low wellbeing in the five Nordic countries despite differences in employment...... sectional study of random samples of children and their families in five Nordic countries (Denmark, Finland, Iceland, Norway, and Sweden). PARTICIPANTS: A total of 10 317 children aged 2-17 years. RESULTS: Children in families with no parents employed in the past six months had higher prevalence...

Evaluation of Market Design Programme - Phase IV; Utvaerdering av Market Designprogrammet - etapp IV

Energy Technology Data Exchange (ETDEWEB)

Wall, Tomas

2013-08-15

The Market Design program was established in year 2000 to study issues related to markets, regulations and policy instruments related to the deregulation of the Swedish electricity market. Through the years, the focus has widened to include not only Sweden but also international cooperation on these issues. The fourth phase of the program is now underway between the years 2010 and 2013. The overall project objective of this fourth phase is to increase knowledge about the Nordic and North European electricity market. Specific objective is to create new knowledge that affects market design of the single market area (Nordic, EU) and to contribute to constructive meetings between researchers, energy companies and government agencies on Market Design Issues. The purpose of the evaluation of the Market Design Program phase IV has been to investigate the results and benefits of the program in relation to the program's original objectives and to examine the need for and areas of further research and possible ways for the research in Market Design. The evaluation has been carried through in four phases during spring and summer 2013. The work has included reading, interviews with program stakeholders, analysis and reporting.

Energy system, electricity market and economic studies on increasing nuclear power capacity

International Nuclear Information System (INIS)

Forsstrom, J.; Pursiheimo, E.; Kekkonen, V.; Honkatukia, J.

2010-04-01

Objective of this research project is to examine effects of addition of nuclear capacity from three different angles by using energy system, electricity market and economic analysis. In each area the analysis is based on computational methods. Finland is a member of Nordic electricity market which is further connected to networks of Continental Europe and Russia. Due to the foreign connections Finland has been able to import inexpensive electricity from its neighboring countries and this state is expected to continue. Addition of nuclear capacity lowers electricity import demand, affects level of electricity price decreasingly and decreases shortfall of installed production capacity. Substantial additions of nuclear power capacity and generous import supply have disadvantageous effect on profitability of combined heat and power production. The development of import possibilities depends on progression of difficult-to-estimate balance between electricity consumption and production in the neighboring countries. Investments on nuclear power increase national product during the construction phase. Growth of employment is also rather significant, especially during the construction phase. In the long term permanent jobs will be created too. Increase of employment is held back by increasing real wages, but it is though evident that consumer purchasing power is improved due to these nuclear power developments. (orig.)

Restructuring in the Electricity Markets and Structural Transformation in Turkish Electricity Market

Directory of Open Access Journals (Sweden)

Hakan ÇETİNTAŞ

2015-07-01

Full Text Available Electricity markets are changed over from monopolistic to competitive structure. In many countries liberalization process in electricity markets began after 1980. In this study models for restructuring the electricity markets are explained with the natural monopoly and its regulation which is discussed in economic theory over many years. Then structural transformation in Turkish Electricity Market is explained within the legal arrangament framework and in liberalization process of electricity markets current state of Turkey is evaluated. In Turkey, the reform process in electricity market began with the liberalization of production and ıt is contiuned to change the design of the wholesale market. There has been significant progress for energy exchange by the establishment of EPİAŞ with the Electricity Market Law Numbered 6446 in 2013.

The Nordic Region - leading in green growth. Report by the Nordic prime ministers' working group for green growth

Energy Technology Data Exchange (ETDEWEB)

2011-10-15

If green growth is to be a key priority for Nordic co-operation in the next few years, then it is essential to have a joint vision for the work - a vision underpinned by tangible activities, one that enjoys strong political support and sends important signals about political goals and intentions. ''The Nordic Region - leading in green growth'' is a vision based on the joint utilisation of Nordic strengths in energy efficiency, the development of sustainable energy, environmental awareness, investment in innovation and research, and ambitious international targets for the environment and climate. Working together, the Region will carry more weight, earn a bigger market share and make more of a political impact at international level. The working group recommends eight priorities: 1. developing Nordic test centres for green solutions. 2. working together on education, training and research for green growth. 3. promoting flexible consumption of electricity. 4. working together on green-technology norms and standards. 5. working together on green procurement in the public sector. 6. developing techniques and methods for waste treatment. 7. promoting the integration of environmental and climate considerations into development aid. 8. co-ordinating and improving funding for green investment and companies. (LN)

Digital marketing plan for a non-profit organization. Case: Nordic ASEAN Business Forum Ry

OpenAIRE

Ngo, Chi

2017-01-01

The Internet is changing people’s lives as well as the way organizations operate. In fact, digitalization and digital marketing are considered essential in organization’s operations. In this context, the capability to facilitate and master digital marketing becomes a key asset of an organization to stay competitive. This project-based thesis was commissioned by Nordic ASEAN Business Forum (NABF), a non-profit organization based in Helsinki, Finland. The need for the thesis comes from the ...

Promoting Vehicle to Grid (V2G) in the Nordic Region

DEFF Research Database (Denmark)

Kester, Johannes; Noel, Lance; Zarazua de Rubens, Gerardo

2018-01-01

Vehicle to Grid (V2G) holds the promise of cheap, flexible, and fast-responding storage through the use of electric vehicle batteries. Unfortunately, infrastructure, battery degradation and consumer awareness are only some of the challenges to a faster development of this technology. This paper...... offers a qualitative comparative analysis that draws on a subsample of 227 semistructured interviews on electric vehicles with both transportation and electricity experts from 201 institutions and 17 cities within the Nordic region to discuss the reasoning and arguments behind V2G incentives and policy...... mechanisms. A frequency analysis of the most coded V2G responses favoured an update of the electricity market regulation – in particular in relation to electricity taxation and aggregator markets – and support for pilot projects. However, the analysis overall implies that V2G, in contrast to EVs...

Nuclear communications and deregulated energy market

International Nuclear Information System (INIS)

Ruuskanen, Antti

1998-01-01

The electricity market a over the world is facing the most profound change ever. The market is to be deregulated, competition will be increased and companies privatised. The boom started from the UK but today the Nordic market is the most liberalised in the world. Nordic market consists of annual power sales around 350 TWh and only a modest growth potential of 12 percent per year. All fuels and all technologies meet in the marketplace. Nuclear has its good one fourth share of the production there. Nuclear is clearly for base-load with low marginal costs next to hydro electric power. There are four major players in the Nordic market. Swedish Vattenfall, IVO Group and Swedish Sydkraft are the three biggest in that order, and all of them have nuclear assets. The market is characterised by lowest power prices in Europe, two electricity exchanges and continuous power trade across the borders. The described market change from national and less open utility driven sector has clear impacts to companies strategies and consequently also to communications. All these circumstances demand, New target groups from corporate communications' point of view; new communications language to change to more business-like; new insider rules and new information practices; new business orientated journalists against a new reference group. This all opens new challenges and possibilities to re-build nuclear image. Market economy in electricity will also ease governmental nationally oriented energy policies and let market forces to decide whether investments are viable or not. This is positive for nuclear - again if and only if the power plants are managed in an economically viable way. Deregulation may open the market from political deadlock to new nuclear investments in case the above mentioned requirements are correct. All in all, market change comes sooner or later to regions not yet liberalised. It will challenge nuclear companies and their communications. The change always creates

Market Survey Turkey. Electricity Market

International Nuclear Information System (INIS)

2008-12-01

The present market survey presents the Turkish power market and derives business opportunities and prospects for Dutch trade and industry. This market survey has been carried out for the following four, from time to time overlapping, sectors that have been identified by EVD as potential opportunities for Dutch small and medium-sized enterprises (SME): renewable energy, energy efficiency, electricity generation, electricity distribution

Reinterpreting the Historicity of the Nordic Model

OpenAIRE

Pauli Kettunen

2012-01-01

In conventional images of the so-called Nordic model, the strong state is opposed to markets or civil society and co-operation is opposed to conflict. These opposites appear problematic if one takes seriously the Nordic market- and interest-centered language used for the practices of social regulation, including the stubborn use of “labor market parties” instead of the EU concept “social partners”. Applying an approach sensitive to the historical and political aspects of language and concepts...

Infrastructure development for electrical mobility: a Nordic perspective on national and cross-national challenges

DEFF Research Database (Denmark)

Klitkou, Antje; Iversen, Eric; Borup, Mads

level. This paper studies the national cases of Norway and Denmark within the context of the seemingly homogenous Nordic region. The paper focuses on the different approaches taken at the national level to build battery electric vehicle (BEV) recharging infrastructure. Norway and Denmark provide apt...

Nordic Energy Technologies : Enabling a sustainable Nordic energy future

Energy Technology Data Exchange (ETDEWEB)

Vik, Amund; Smith, Benjamin

2009-10-15

A high current Nordic competence in energy technology and an increased need for funding and international cooperation in the field are the main messages of the report. This report summarizes results from 7 different research projects relating to policies for energy technology, funded by Nordic Energy Research for the period 2007-2008, and provides an analysis of the Nordic innovation systems in the energy sector. The Nordic countries possess a high level of competence in the field of renewable energy technologies. Of the total installed capacity comprises a large share of renewable energy, and Nordic technology companies play an important role in the international market. Especially distinguished wind energy, both in view of the installed power and a global technology sales. Public funding for energy research has experienced a significant decline since the oil crisis of the 1970s, although the figures in recent years has increased a bit. According to the IEA, it will require a significant increase in funding to reduce greenhouse gas emissions and limit further climate change. The third point highlighted in the report is the importance of international cooperation in energy research. Nordic and international cooperation is necessary in order to reduce duplication and create the synergy needed if we are to achieve our ambitious policy objectives in the climate and energy issue. (AG)

Unified electricity market

International Nuclear Information System (INIS)

Anon

2011-01-01

A unified European electricity market means a unification and harmonisation of functioning of the national electricity market into one European Market or into one entity. It gives an opportunity to Slovenske elektrarne to open room for their wider activity within Europe where common rules for cross-boarder trade and markets functioning will apply. (author)

Priority cross-sections. Joint Nordic analyses of important cross-sections in the Nordel system. Main report

Energy Technology Data Exchange (ETDEWEB)

NONE

2004-06-01

The Nordic Grid Master Plan 2002 shed light on the energy and power balance for the Nordel area but with special focus on 2005. There was a lot to suggest that the tradi-tional transport patterns with frequent southbound transports would change and be more frequently replaced by northbound transports. Against this background, a number of cross-sections were identified within the Nordel area where expansion is expected to have considerable significance for the Nordic elec-tricity market. The present report 'Priority Cross-sections' concludes the work which was started with the grid master plan. The priority cross-sections are subjected to a technical and socio-economic analysis. The analysis aims to understand the transports in the Nordel system and to support Nor-del when prioritizing forthcoming initiatives. The market price is the driving force for the initiatives which will be carried out on the supply and demand side. The commissioning and decommissioning of commercial pro-duction capacity is determined by the market players, and the task of the transmission system operators (TSOs) is to ensure a robust infrastructure for the smooth operation of the electricity market. (au)

Nordic Analysis of Climate Friendly Buildings

DEFF Research Database (Denmark)

Andresen, Inger; Thomsen, Kirsten Engelund; Wahlstrøm, Åsa

This report summarizes the findings of the work conducted within the project “Nordic Analysis of Climate Friendly Buildings”, financed by the Nordic Council of Ministers. The main goal of the project was to establish a knowledge and decision base for a Nordic innovation program that will promote...... the development and demonstration of low energy and climate friendly buildings. The innovation program should support a development that brings the Nordic countries to an international forefront with respect to business strongholds and market penetration of low energy and climate friendly buildings....

A method for short term electricity spot price forecasting

International Nuclear Information System (INIS)

Koreneff, G.; Seppaelae, A.; Lehtonen, M.; Kekkonen, V.; Laitinen, E.; Haekli, J.; Antila, E.

1998-01-01

In Finland, the electricity market was de-regulated in November 1995. For the electricity purchase of power companies this has caused big changes, since the old tariff based contracts of bulk power supply have been replaced by negotiated bilateral short term contracts and by power purchase from the spot market. In the spot market, in turn, there are at the present two strong actors: The electricity exchange of Finland and the Nordic power pool which is run by the Swedish and Norwegian companies. Today, the power companies in Finland have short term trade with both of the electricity exchanges. The aim of this chapter is to present methods for spot price forecasting in the electricity exchange. The main focus is given to the Finnish circumstances. In the beginning of the presentation, the practices of the electricity exchange of Finland are described, and a brief presentation is given on the different contracts, or electricity products, available in the spot market. For comparison, the practices of the Nordic electricity exchange are also outlined. A time series technique for spot price forecasting is presented. The structure of the model is presented, and its validity is tested using real case data obtained from the Finnish power market. The spot price forecasting model is a part of a computer system for distribution energy management (DEM) in a de-regulated power market

A method for short term electricity spot price forecasting

Energy Technology Data Exchange (ETDEWEB)

Koreneff, G; Seppaelae, A; Lehtonen, M; Kekkonen, V [VTT Energy, Espoo (Finland); Laitinen, E; Haekli, J [Vaasa Univ. (Finland); Antila, E [ABB Transmit Oy (Finland)

1998-08-01

In Finland, the electricity market was de-regulated in November 1995. For the electricity purchase of power companies this has caused big changes, since the old tariff based contracts of bulk power supply have been replaced by negotiated bilateral short term contracts and by power purchase from the spot market. In the spot market, in turn, there are at the present two strong actors: The electricity exchange of Finland and the Nordic power pool which is run by the Swedish and Norwegian companies. Today, the power companies in Finland have short term trade with both of the electricity exchanges. The aim of this chapter is to present methods for spot price forecasting in the electricity exchange. The main focus is given to the Finnish circumstances. In the beginning of the presentation, the practices of the electricity exchange of Finland are described, and a brief presentation is given on the different contracts, or electricity products, available in the spot market. For comparison, the practices of the Nordic electricity exchange are also outlined. A time series technique for spot price forecasting is presented. The structure of the model is presented, and its validity is tested using real case data obtained from the Finnish power market. The spot price forecasting model is a part of a computer system for distribution energy management (DEM) in a de-regulated power market

Essays on electricity markets

Energy Technology Data Exchange (ETDEWEB)

Rud, Linda

2009-07-01

The report covers several topics of electricity markets: The first essay, 'Selected Topics on Early Electricity Market Design in Norway' studies market design issues in establishing the market-based Norwegian electricity market. Essays 2-4 focus on issues of network congestion: 'Capacity Charges: A Price Adjustment Process for Managing Congestion in Electricity Transmission Networks' presents the capacity charge approach for managing transmission constraints in electricity networks. 'Understanding the Stochastics of Nodal Prices: Price Processes in a Constrained Network' seeks a further understanding of stochastic nodal prices processes. 'Investment Evaluation in a Constrained Electricity Network with Stochastic Nodal Price Processes' studies how the interaction of the competitive market and the capacitated network affects the evaluation of investments under uncertainty, and points out potential pitfalls of evaluation. In the last essay, 'A Newsboy Model Perspective on the Power Market: The Case of a Wind Power Producer' we discuss aspects of optimal bidding for a wind power producer. (Author)

Essays on electricity markets

Energy Technology Data Exchange (ETDEWEB)

Rud, Linda

2009-07-01

The report covers several topics of electricity markets: The first essay, 'Selected Topics on Early Electricity Market Design in Norway' studies market design issues in establishing the market-based Norwegian electricity market. Essays 2-4 focus on issues of network congestion: 'Capacity Charges: A Price Adjustment Process for Managing Congestion in Electricity Transmission Networks' presents the capacity charge approach for managing transmission constraints in electricity networks. 'Understanding the Stochastics of Nodal Prices: Price Processes in a Constrained Network' seeks a further understanding of stochastic nodal prices processes. 'Investment Evaluation in a Constrained Electricity Network with Stochastic Nodal Price Processes' studies how the interaction of the competitive market and the capacitated network affects the evaluation of investments under uncertainty, and points out potential pitfalls of evaluation. In the last essay, 'A Newsboy Model Perspective on the Power Market: The Case of a Wind Power Producer' we discuss aspects of optimal bidding for a wind power producer. (Author)

Future Electricity Markets

DEFF Research Database (Denmark)

Pinson, Pierre

2015-01-01

The changing face of energy production in Europe necessitates a rethink in the way that electricity markets are structured. The ‘5s’ (Future Electricity Markets) project is a multi-disciplinary project that is looking to challenge the current approach to the design and operation of electricity...

Electricity markets theories and applications

CERN Document Server

Lin, Jeremy

2017-01-01

Electricity Markets: Theories and Applications offers students and practitioners a clear understanding of the fundamental concepts of the economic theories, particularly microeconomic theories, as well as information on some advanced optimization methods of electricity markets. The authors--noted experts in the field--cover the basic drivers for the transformation of the electricity industry in both the United States and around the world and discuss the fundamentals of power system operation, electricity market design and structures, and electricity market operations. The text also explores advanced topics of power system operations and electricity market design and structure including zonal versus nodal pricing, market performance and market power issues, transmission pricing, and the emerging problems electricity markets face in smart grid and micro-grid environments. The authors also examine system planning under the context of electricity market regime. They explain the new ways to solve problems with t...

The labor market regimes of Denmark and Norway – one Nordic\\ud model?

OpenAIRE

Gooderham, Paul; Navrbjerg, Steen E.; Olsen, Karen Modesta; Steen, Christina Roe

2015-01-01

The literature on the Danish and Norwegian labor market systems emphasizes the commonalities of the two systems. We challenge this perception by investigating how employers in multinational companies in Denmark and Norway communicate with employees on staffing changes. We argue that the development of ‘flexicurity’ in Denmark grants Danish employers considerably greater latitude in engaging in staffing changes than its Nordic counterpart, Norway. Institutional theory leads us to suppose that ...

Reinterpreting the Historicity of the Nordic Model

Directory of Open Access Journals (Sweden)

Pauli Kettunen

2012-11-01

Full Text Available In conventional images of the so-called Nordic model, the strong state is opposed to markets or civil society and co-operation is opposed to conflict. These opposites appear problematic if one takes seriously the Nordic market- and interest-centered language used for the practices of social regulation, including the stubborn use of “labor market parties” instead of the EU concept “social partners”. Applying an approach sensitive to the historical and political aspects of language and concepts, the paper argues that a particular notion of social citizenship developed in the Nordic countries, in which interests rather than rights were put into the center. Such a notion of social citizenship was associated with two intertwined ideas, important in the development of the Nordic pattern of social reform: the idea of symmetry between workers and employers and the idea of a virtuous circle between divergent interests. With these ideas democracy and citizenship were combined with paid work and conflicting interests. This combination has been questioned by the projects for competitive national (and European communities, responding to globalized and financialized capitalism. The vigorous comparisons of “models”, and the popularity of the concept of “the Nordic model”, can be seen as an aspect of this current transformation.

The electricity market

International Nuclear Information System (INIS)

2015-01-01

After a first part proposing predictions for electricity production and consumption for 2016, for the turnovers of electricity suppliers and producers, an indication of important recent important events regarding enterprises belonging to the sector, and a dashboard of the sector activity, an annual report proposes a detailed overview of trends and of the competition context for the electricity market. It identifies the main market opportunities for electricity suppliers, identifies eight determining factors for the sector activity, gives an overview of the sector context evolution between 2004 and 2014 (temperatures, rainfalls, manufacturing industry production, housing and office building stock, projected housing and office building). It analyses the evolution of the sector activity by presenting and commenting various activity indicators and financial performance of electricity producers. It analyses the sector economic structure: evolution of the economic fabric, presentation of various structural characteristics (cross-border exchanges, production capacities per energy source, nuclear plant fleet, thermal plant fleet, location, electricity supply market). It proposes a presentation of the various actors and of their respective market shares, and presentations of groups, electricity suppliers, and electricity producers. It indicates highlights and presents various rankings of the main enterprises in 2014

Slovenian and Spanish electricity markets

International Nuclear Information System (INIS)

Bregar, Z.

2004-01-01

Spanish electricity market has served as a basic model in the construction of the electricity market in Slovenia. However, in the final phase of its development additional solutions were adopted from other European and worldwide electricity markets. The electricity market thus obtained is in some aspects more complex and in others simpler with regard to the original model. This article describes two of the new solutions on the Slovenian electricity market: the introduction of numerous standardized electric energy products (Band, Peak, Off-peak, Hourly power etc.) to be traded on completely separate markets, and the introduction of continuous, real-time type trading on all of them but the hourly market.(author)

Report on system operation - A background report prepared by the Nordel Operation Committee/OPG in the Nordel project on enhancing efficient functioning of the Nordic electricity market

International Nuclear Information System (INIS)

2004-12-01

This report contains the operation procedures in extreme situations and lessons learned from blackouts, based on a mandate given by the Operations Committee. Nordic TSOs have had common rules and principles for system operation i.e. System Operation Agreement since the late 1990s. The rules have been revised according to the system security and market changes and needs. The collaboration between system operators is regular and fruitful. The knowledge and capability to manage extreme situations of the Nordic power system has continuously increased and the recent blackouts did not show major deficiencies in operation practices. Regardless of the existing good collaboration it is important to continue development in the future in order to ensure high system security. Important development areas are security of reserve supervision and coordination of calculation procedures for transmission limits, enhancement of data exchange routines between control centres in order to improve the overview of the system security within the Nordic power system. More extensive coordination of outage planning processes will further improve the system security. Continuously training of operational staff is important to be able to manage different situations and disturbances efficiently. (BA)

Vocational education and training in the Nordic countries:

DEFF Research Database (Denmark)

Jørgensen, Christian Helms

2018-01-01

countries and the historical development of each of the four VET systems. This is followed by an examination of the role of VET in relation to the Nordic model of education and the Nordic labour market model. Finally, the position of VET in the Nordic transition systems is considered.......The chapter examines the systems of vocational education and training (VET) in four Nordic countries, Sweden, Finland, Norway and Denmark. First, it identifies the common political challenges for VET, which the following chapters of the book examine. Next, it outlines shared qualities of the Nordic...

Energy and commodities market

International Nuclear Information System (INIS)

Bokermann, Marcus; Prass, Markus

2015-01-01

The electricity markets in Central and Western Europe and in the nordic countries have further shown weak in 2014 with falling prices. The key factors were the declining quotations for coal and natural gas and the warm weather. Another driver was the growth of renewable energy. In the power markets conditions remained mostly an oversupply. The upward trending prices on the CO 2 emissions market were not formative enough to turn the market sentiment. They only caused for volatility during the year. [de

Wind up with continuous intra-day electricity markets? The integration of large-share wind power generation in Denmark

International Nuclear Information System (INIS)

Karanfil, Fatih; Li, Yuanjing

2015-01-01

This paper suggests an innovative idea to examine the functionality of an electricity intra-day market by testing causality among its fundamental components. As fluctuations of poorly predicted wind power generation are challenging the stability of the current electricity system, an intra-day market design can play an important role in managing wind forecast errors. Using Danish and Nordic data, it investigates the main drivers of the price difference between the intra-day and day-ahead markets, and causality between wind forecast errors and their counterparts. Our results show that the wind and conventional generation forecast errors significantly cause the intra-day price to differ from the day-ahead price, and that the relative intra-day price decreases with the unexpected amount of wind generation. Cross-border electricity exchanges are found to be important to handle wind forecast errors. Additionally, some zonal differences with respect to both causality and impulse responses are detected. This paper provides the first evidence on the persuasive functioning of the intra-day market in the case of Denmark, whereby intermittent production deviations are effectively reduced, and wind forecast errors are jointly handled through the responses from demand, conventional generation, and intra-day international electricity trade. (authors)

Perspectives on Nordic Working Life Research

Directory of Open Access Journals (Sweden)

Jan Ch. Karlsson

2013-09-01

Full Text Available Welcome to this Thematic Issue on Perspectives on Nordic Working Life Research! It is perhaps not that surprising that a journal called Nordic Journal of Working Life Studies contains many discussions about “Nordic Models”: What is the Nordic Welfare State Model? What has happened to it lately? Is there still one? Has there ever been one? What about the Nordic Industrial Relations Model—is it on its way to be abandoned? And the Nordic Labor Market Model? Or the Nordic Work Environment Model? In contrast, in the Thematic Issue part of this issue of NJWLS Nordic working life research itself is discussed. Editing the issue has led me to some (selfcritical reflections on Nordic working life research—or perhaps rather reflections on the self-image of Nordic working life researchers. We often say that two of the cornerstones of Nordic working life research are the assumption that there is a positive correlation between employee autonomy at work and higher productivity, and that our research tradition is different from those found in other geographical areas (and, implicitly, probably better. Being part of the Nordic tradition, I too have claimed both, but I now think both needs to be qualified and critically discussed. Or rather, the first needs to be qualified and the consequences of the other critically evaluated (...

Cross-border integration in the European electricity market. Evidence from the pricing behavior of Norwegian and Swiss exporters

International Nuclear Information System (INIS)

Balaguer, Jacint

2011-01-01

This paper examines the electricity market integration process in two European areas based on the pricing behavior of Norwegian and Swiss exporters. The aim is to gain evidence for the period after the adoption of the 'Second Legislative Package' (2003). The pricing behavior of Norwegian exporters indicates that the wholesale markets for Denmark and Sweden are highly integrated. Moreover, results are fully compatible with the existence of a very competitive marketplace for electricity. This clearly contrasts with the evidence provided by Swiss exporters. In this last case, analysis revealed differences in pricing-to-market behavior between Italy, France and Germany, which indicates that exporters take advantage of international market segmentation and divergences between market structures. This outcome provides a reasonable explanation as to why price differences between countries cannot be fully attributed to transmission costs, as has been claimed in previous research. We also found cross-country convergence in levels of markups and in pricing-to-market behavior of the Swiss exporters for the first part of the period that was analyzed. The evidence is fully consistent with an initial impulse toward market integration originated by reforms implemented at the beginning of the last decade. - Highlights: → We exploit a model based on pricing-to-market behavior. → Price discrimination by Swiss exporters is found. → Nordic electricity markets are found to be already highly integrated. → Market integration was recently improved in continental area. → Results are consistent with reforms under the 'Second Legislative Package'.

Cross-border integration in the European electricity market. Evidence from the pricing behavior of Norwegian and Swiss exporters

Energy Technology Data Exchange (ETDEWEB)

Balaguer, Jacint, E-mail: jacint.balaguer@eco.uji.es [Department of Economics, Universitat Jaume I, 12071 Castellon (Spain)

2011-09-15

This paper examines the electricity market integration process in two European areas based on the pricing behavior of Norwegian and Swiss exporters. The aim is to gain evidence for the period after the adoption of the 'Second Legislative Package' (2003). The pricing behavior of Norwegian exporters indicates that the wholesale markets for Denmark and Sweden are highly integrated. Moreover, results are fully compatible with the existence of a very competitive marketplace for electricity. This clearly contrasts with the evidence provided by Swiss exporters. In this last case, analysis revealed differences in pricing-to-market behavior between Italy, France and Germany, which indicates that exporters take advantage of international market segmentation and divergences between market structures. This outcome provides a reasonable explanation as to why price differences between countries cannot be fully attributed to transmission costs, as has been claimed in previous research. We also found cross-country convergence in levels of markups and in pricing-to-market behavior of the Swiss exporters for the first part of the period that was analyzed. The evidence is fully consistent with an initial impulse toward market integration originated by reforms implemented at the beginning of the last decade. - Highlights: > We exploit a model based on pricing-to-market behavior. > Price discrimination by Swiss exporters is found. > Nordic electricity markets are found to be already highly integrated. > Market integration was recently improved in continental area. > Results are consistent with reforms under the 'Second Legislative Package'.

Will cross-ownership reestablish market power in the Nordic power market?

International Nuclear Information System (INIS)

Amundsen, Eirik S.; Bergman, Lars

2000-01-01

The integration of the power markets in Norway and Sweden in 1996 significantly constrained the major power companies' ability to exercise market power within their national borders. In recent years, however, mergers and reciprocal acquisition of shares have reduced the number of independent players on the Norwegian-Swedish power market. The aim of this paper is to explore to what extent increasing cross-ownership among major power companies in Norway and Sweden might re-establish the market power that was lost when the two national power markets were integrated. The analysis is based on a numerical model, assuming Cournot quantity setting behaviour, of the Norwegian-Swedish power market. The simulation results suggest that partial ownership relations between major generators and other power-producing firms tend to increase horizontal market power and thus the market price of electricity. (author)

Economic Dispatch of Hydrogen Systems in Energy Spot Markets

DEFF Research Database (Denmark)

You, Shi; Nørgård, Per Bromand

2015-01-01

of energy spot markets. The generic hydrogen system is comprised of an electrolysis for hydrogen production, a hydrogen storage tank and a fuel cell system for cogeneration of electricity and heat. A case study is presented with information from practical hydrogen systems and the Nordic energy markets...

The Wage Curve in the Nordic Countries

DEFF Research Database (Denmark)

Madsen, Erik Strøjer; Albæk, K.; Asplund, R.

regions in the long run. One explanation put forward for this slow speed of regional wage adjustment is the rather centralized bargaining system on the labour market in the Nordic countries. Wages are set according to the average unemployment rate for the economy as a whole, and differences in regional...... for researchers or civil servants with a deeper interest in labour market problems. The main result from this study is that the wage formation at the regional level is rather inflexible in the short run in all five Nordic countries, with no effect from changes in local unemployment on the local wage level......This report focusses on wage formation in the Nordic countries with a special attention to the effect from changes in local unemployment on the local wage level. The book gives a comprehensive and comparable study of this topic in the five Nordic countries which may be of great value...

Impact of Energy Transition in Germany on the Nordic Power Market – A Blessing or Curse?

DEFF Research Database (Denmark)

Zakeri, Behnam; Syri, Sanna; Connolly, David

2015-01-01

integrate and harmonize regional markets towards a pan-European power market with a single pricing algorithm. The impacts of such power market couplings on the interconnected countries are complex, which concerns market participants in different levels, from consumers and producers to grid operators...... in such interconnected countries calls for a market-based multiregion energy system model. In this respect, this contribution analyses the impact of further VRE in Germany on the Nordic countries by proposing a new integrated energy system, power market model of the region. The results reveal the market-economic impact......The European energy policy emphasizes the establishment of EU-wide internal energy markets as a reliable solution in increasing the security of supply, optimal use of internal energy resources, and improved economic competitiveness. With respect to the power sector, the EU’s strategy is to further...

Parents' labour market participation as a predictor of children's health and wellbeing: a comparative study in five Nordic countries.

Science.gov (United States)

Reinhardt Pedersen, C; Madsen, M

2002-11-01

To study the association between parents' labour market participation and children's health and wellbeing. Parent reported data on health and wellbeing among their children from the survey Health and welfare among children and adolescents in the Nordic countries, 1996. A cross sectional study of random samples of children and their families in five Nordic countries (Denmark, Finland, Iceland, Norway, and Sweden). A total of 10 317 children aged 2-17 years. Children in families with no parents employed in the past six months had higher prevalence of recurrent psychosomatic symptoms (odds ratio 1.67, 95% confidence intervals 1.16 to 2.40), chronic illness (odds ratio 1.35, 95% confidence intervals 1.00 to 1.84), and low wellbeing (odds ratio 1.47, 95% confidence intervals 1.12 to 1.94). Social class, family type, parents' immigrant status, gender and age of the child, respondent, and country were included as confounders. When social class, family type and the parents' immigrant status (one or more born in the Nordic country versus both born elsewhere) were introduced into the model, the odds ratios were reduced but were still statistically significant. Health outcomes and parents' labour market participation were associated in all five countries. Children in families with no parents employed in the past six months had higher prevalence of ill health and low wellbeing in the five Nordic countries despite differences in employment rates and social benefits.

Market power analysis for the Iranian electricity market

International Nuclear Information System (INIS)

Asgari, Mohammad Hossein; Monsef, Hassan

2010-01-01

The market power problem in Iranian electricity market is addressed in this study. This paper by using various structural indices of market power and reviewing market results analyzes the intensity of competition in Iran's electricity market and examines whether this market is functioning at an appropriate level of efficiency. In this article the most well-known indices of market power are calculated in two approaches for two different scenarios (current situation and future outlook of generation sector's ownership in Iran's power industry). Comparing the results of these scenarios promises more competitive market for the second scenario. Calculating Residual Supply Index for Iran's power market shows despite admissible values of concentration ratios, due to supply scarcity during periods when the demand is close to the total available capacity, some suppliers can exercise market power even with a relatively small market share. The most important price and load indices like weighted average prices and load/price duration curves of Iranian electricity market during March 2007-March 2008 are also analyzed in this paper. These results imply the existence of economic withholding. The main limiting factors of competition and significant implemented countermeasures for market power mitigation in Iran's electricity market are also mentioned.

Energy Choices. Energy markets; Vaegval Energi. Energimarknader

Energy Technology Data Exchange (ETDEWEB)

Damsgaard, Niclas (Econ Poeyry AB, Stockholm (Sweden))

2008-12-15

Each of the major energy markets for oil, coal, natural gas, biofuels and electricity has its own character. But markets are dependent on each other in an often complicated way. This interconnection has become even more complex since the market for emissions trading began in Europe in 2005. This report describes the current situation of the different energy markets but also the relationships between them, and some possible future scenarios. The oil market is global, but is dominated by a few producing countries. Coal is traded on the international market with good competition and over time probably a stable price. Other markets are more regional or even local. One example is the natural gas market. In the current situation of natural gas is not particularly important for Sweden's energy supply, but very much so in a European perspective. There may be repercussions also in Sweden. The gas price ups and downs are important for the price of emission rights and electricity. Biofuel markets ranging from global markets, such as ethanol, to regional or local markets, depending on processing. Only with the creation of a single trading venue, Nordpool was a common pricing of electricity possible in the Nordic region. In the near future we will have a common electricity market covering at least the Nordic region and northwestern Europe. This does not mean that prices will become equalized, for that further expansion of the transmission capacity is needed. It is possible to imagine several scenarios for future energy markets, but the interaction between the different markets will persist. To develop appropriate instruments is of great importance to achieve the political objectives in the energy field the next decade

Cooperative consumers in a deregulated electricity market - dynamic consumption strategies and price coordination

Energy Technology Data Exchange (ETDEWEB)

Haemaelaeinen, R.P.; Maentysaari, J. [Helsinki Univ. of Technology (Finland). Systems Analysis Lab.; Ruusunen, J. [Fortum Power and Heat Inc. (Finland); Pineau, P.O. [Helsinki Univ. of Technology (Finland). Systems Analysis Lab.; Ecole des Hautes Etudes Commerciales, Monteal , Quebec (Canada)

2000-09-01

As the trend in electricity markets is strongly towards deregulation, new players, new rules and new behaviors will continue to emerge. One of the new developments on the demand side is purchases made by a coalition of consumers. It seems indeed likely that in the future this will be more common, and that coalitions of consumers will emerge when they are worthwhile. The aim of this paper is to study how such an organization of consumers can be set up in a hierarchical framework. This new approach has not been described before in the deregulated electricity markets but is clearly an important research topic. We focus our interest on electric space heating, which is an energy need especially important in the Nordic countries such as Finland. We examine the consumption strategies of individual electricity buyers within a coalition. The decision problem all consumers face is to find the optimal use of their space heating system with respect to changes in electricity prices and to their tolerance to indoor temperature variation. A mathematical model for this problem is defined. Physical parameters of sample houses were gathered from an experimental field test conducted in Helsinki during the winter of 1996. The coalition buys in the market at marginal cost. However, as marginal cost pricing may not always fulfill metering and communication needs of the members of the coalition, we consider Time-Of-Use (TOU) pricing within the coalition. Different groups of consumer behavior are constructed to simulate this coalition. The optimal marginal price is used as a reference point to estimate the nearest TOU price within the coalition. (author)

Action plan for Nordic energy co-operation 2006-2009

International Nuclear Information System (INIS)

2005-01-01

The Action Plan for Nordic Energy Co-operation 2006-2009 is targeted at creating a visible and sustainable contribution to solving the most important and politically most relevant energy policy challenges faced by the Nordic region. The plan concentrates on three main areas: Energy markets; Sustainable energy system; and Nordic impact on the international agenda. The Action Plan is the energy sector's contribution to the implementation of the Nordic strategy 'Sustainable Development - New Bearing for the Nordic Countries' and to a number of the Nordic Council's recommendations for the development of the Nordic energy sector. An important element of the implementation of the action plan is on-going contact and information sharing between the Nordic Energy Policy co-operation and the Nordic Energy Research. The continues dialogue between the Nordic Council of Energy Ministers and The Nordic Council on future energy policy challenges will likewise be an important part of the political process. (BA)

Restructured electric power systems analysis of electricity markets with equilibrium models

CERN Document Server

2010-01-01

Electricity market deregulation is driving the power energy production from a monopolistic structure into a competitive market environment. The development of electricity markets has necessitated the need to analyze market behavior and power. Restructured Electric Power Systems reviews the latest developments in electricity market equilibrium models and discusses the application of such models in the practical analysis and assessment of electricity markets.

Parents' labour market participation as predictor of children's well-being: changes from 1984 to 1996 in the Nordic countries

DEFF Research Database (Denmark)

Pedersen, Charlotte R; Holstein, Bjørn E; Köhler, Lennart

2005-01-01

BACKGROUND: This study analysed the influence of parents' labour market participation on their children's well-being in the five Nordic countries, and the changes from 1984 to 1996, during which unemployment rates generally rose in the Nordic countries. METHODS: Parent-reported questionnaire data...... from two cross-sectional studies, 12 years apart, with 15,354 (in 1984) and 15,255 (in 1996) randomly selected children aged 2-17 years. The response rates were 67.0% (n=10290) and 67.6% (n=10317), respectively. The parents' assessment of their children's well-being was measured by six items......, with three items focusing on psychological functioning and three items on social functioning. RESULTS: The association between parents' labour market participation and children's well-being changed from 1984 to 1996. In 1984, more children in families with paid work had low well-being than did children...

Wholesale electricity markets in Europe

International Nuclear Information System (INIS)

Rios, J. L.

2010-01-01

Electricity Wholesale Markets provide efficient operation of power stations, facilitate hedging instruments for generators and retailers and deliver price signals for new investments. Despite having a common regulatory framework at European level whose last aim is a single electricity market, Wholesale markets have been unevenly developed in each Member State. The evolution form a spot-based market towards a forward-based market needs a certain level of liquidity, transparency and regulatory stability. Interconnections are the key element to promote the integration of electricity markets. To facilitate this, European Regional Initiatives have pushed regulatory harmonization between countries and market coupling projects. (Author)

Alberta's electricity forwards market

International Nuclear Information System (INIS)

Andrews, D.

2002-01-01

This paper outlined how the province of Alberta is starting over with a wholesale electricity market. Wholesalers have retreated back to the real-time market. The Watt-Ex standard market design position paper, issued in October 2002, examines wholesale market issues. The author notes that the biggest constraint to competitive electricity market is the reliance on real-time markets to price a good portion of transactions. Doing so, creates extreme price volatility and ineffective price signals because demand and supply have only a limited ability to respond to prices

Study on electricity markets in Romania

Directory of Open Access Journals (Sweden)

Alexandra FLOREA

2017-03-01

Full Text Available In this paper, we detail about the components of the wholesale electricity market in Romania: Market for Bilateral Contracts (Central Market with continuous double negotiation of bilateral electric energy contracts (CM - OTC, Centralized Market for bilateral electric energy contracts, Day-Ahead Market (DAM, Inter-Daily Market (IM, Balancing Market (BM, Centralized Market for universal service (CMUS. In addition, for each type of market we generated diagrams with the main business processes.

On Russian/Nordic Investment Competition in the Baltic States

Directory of Open Access Journals (Sweden)

Olenchenko Vladimir

2015-06-01

Full Text Available The researchers often overlook the relationships between Russian and Nordic investment capital; and even less attention is paid to studying the competition between the two. Yet this subject can be of particular relevance to the areas that are geographically, historically and culturally close to both Russia and the Nordic countries. Thus, the aim of this article is to understand how the competition between Russian and Nordic capital investment is played out in the Baltic States. The study discusses the principles of Russian and Nordic investment in the Baltic, and suggests ways to regulate these relations. To this end, we compare the investment conditions created in the Baltic States for both Russian and Nordic investors. The analysis shows that most of the Baltic market is controlled by the Nordic capital, which blocks the arrival of Russian investment to the Baltic States. With a nod to a number of previous studies, the authors of this article suggest some adjustments to the theory of foreign direct investment. The study will be also of practical interest to those Russian investors who are seeking entry points to the Baltic markets.

Market power in electricity markets: Beyond concentration measures

International Nuclear Information System (INIS)

Borenstein, S.; Bushnell, J.; Knittel, C.R.

1999-01-01

The wave of electricity market restructuring both within the US and abroad has brought the issue of horizontal market power to the forefront of energy policy. Traditionally, estimation and prediction of market power has relied heavily on concentration measures. In this paper, the authors discuss the weaknesses of concentration measures as a viable measure of market power in the electricity industry, and they propose an alternative method based on market simulations that take advantage of existing plant level data. The authors discuss results from previous studies they have performed, and present new results that allow for the detection of threshold demand levels where market power is likely to be a problem. In addition, the authors analyze the impact of that recent divestitures in the California electricity market will have on estimated market power. They close with a discussion of the policy implications of the results

Nordic H{sub 2} energy foresight action report

Energy Technology Data Exchange (ETDEWEB)

Eerola, A [VTT Technology Studies (Finland)

2004-11-01

The Action Report is one of the intermediate outputs of the Nordic H{sub 2} Energy Foresight project. It pools together the results of the Action Workshop that was organised in Espoo, Finland, in March 2004. It includes the views of 28 Nordic experts representing research, industry, government and relevant associations. A number of challenges are faced when introducing hydrogen energy into the Nordic markets. The report discusses these generics and specific challenges concerning the entire hydrogen energy value chain - hydrogen production, hydrogen use in transport, the stationary use of hydrogen - and the required infrastructure. A multi-perspective approach is taken: techno-economic, infrastructural, geographical, ecological, environmental and socio-political issues are all paid attention to. Thereafter the actions needed to realize the Nordic hydrogen energy visions are discussed. The report suggests that the Nordic countries should take an active role in promoting the successful introduction of hydrogen energy and in exploiting the business opportunities provided by the new technology. The suggestions for actions provided by the Nordic experts can be classified into six categories: 1) informing decision-makers and the wider public, 2) carrying out relevant research and development, 3) creating appropriate strategies and policies, 4) obtaining financial support for the technological developments in the transition phase, 5) market creation and intervention, and 6) contribution to international agreements. The report lists a number of specific tasks within each category and identifies the key actors to be involved at Nordic, national and EU-levels. (au)

Electric vehicles in imperfect electricity markets: The case of Germany

International Nuclear Information System (INIS)

Schill, Wolf-Peter

2011-01-01

We use a game-theoretic model to analyze the impacts of a hypothetical fleet of plug-in electric vehicles on the imperfectly competitive German electricity market. Electric vehicles bring both additional demand and additional storage capacity to the market. We determine the effects on prices, welfare, and electricity generation for various cases with different players in charge of vehicle operations. Vehicle loading increases generator profits, but decreases consumer surplus in the power market. If excess vehicle batteries can be used for storage, welfare results are reversed: generating firms suffer from the price-smoothing effect of additional storage, whereas power consumers benefit despite increasing overall demand. Strategic players tend to under-utilize the storage capacity of the vehicle fleet, which may have negative welfare implications. In contrast, we find a market power-mitigating effect of electric vehicle recharging on oligopolistic generators. Overall, electric vehicles are unlikely to be a relevant source of market power in Germany in the foreseeable future. - Highlights: → We study the effect of electric vehicles on an imperfectly competitive electricity market. → We apply a game-theoretic model to the German market. → There is a market power-mitigating effect of vehicle loading on oligopolistic generating firms. → Consumers benefit from electric vehicles if excess battery capacity can be used for grid storage. → Electric vehicles are unlikely to be a source of market power in Germany in the near future.

Comparing the Nordic and South Korean Models: Labour-Market Regulation and Social Welfare in Times of Crisis

DEFF Research Database (Denmark)

Schmidt, Johannes Dragsbæk

2012-01-01

The first part of the paper briefly describes the causes and impacts of the US induced financial crisis cum “Great Depression”. The second part discusses the status of the various models of contemporary capitalism – the discredited Anglo-Saxon finance-driven model versus the export-driven product......The first part of the paper briefly describes the causes and impacts of the US induced financial crisis cum “Great Depression”. The second part discusses the status of the various models of contemporary capitalism – the discredited Anglo-Saxon finance-driven model versus the export......-driven production model of growth, with weak safety nets, adopted by East Asian countries in contrast to the export-oriented Nordic social welfare model. The third section documents the impact of the crisis on the economies, and discusses core examples of state intervention in the socio-economic sectors...... such as labor markets and social welfare in the Nordic as well as Korean contexts. The final section discusses some tentative conclusions about the resilience of the Nordic and ROK models and their potential for recovery....

Essays on restructured electricity markets

Science.gov (United States)

Nicholson, Emma Leah

This dissertation focuses on the performance of restructured electricity markets in the United States. In chapter 1, I study bidder-specific offer caps ("BSOCs") which are used to mitigate market power in three wholesale electricity markets. The price of electricity is determined through multi-unit uniform price auctions and BSOCs impose an upper limit, which is increasing in marginal cost, on each generator's bid. I apply BSOCs in both the uniform and discriminatory price auctions and characterize the equilibria in a two firm model with stochastic demand. BSOCs unambiguously increase expected production efficiency in the uniform price auction and they can increase the expected profit of the generator with the lower cap. Chapter 2, coauthored with Ramteen Sioshansi, Ph.D., compares two types of uniform price auction formats used in wholesale electricity markets, centrally committed markets and self committed markets. In centrally committed markets, generators submit two-part bids consisting of a fixed startup cost and a variable (per MWh) energy cost, and the auctioneer ensures that no generator operates at a loss. Generators in self committed markets must incorporate their startup costs into their one part energy bids. We derive Nash equilibria for both the centrally and self committed electricity markets in a model with two symmetric generators with nonconvex costs and deterministic demand. Using a numerical example, we demonstrate that if the caps on the bid elements are chosen appropriately, the two market designs are equivalent in terms of generator revenues and settlement costs. Regulators and prominent academic experts believe that electric restructuring polices have stifled investment in new generation capacity. In chapter 3 I seek to determine whether these fears are supported by empirical evidence. I examine both total investment in megawatts and the number of new investments across regions that adopted different electric restructuring policies to

Electricity regulation and electricity market reforms in China

International Nuclear Information System (INIS)

Ngan, H.W.

2010-01-01

The electricity industry of China has been in a process of reforms since the 1980s. This paper gives a review on the three main stages of reforms in China so as to trace out key features of various reform measures including those for power investment financing, the separation between government and power enterprises, and the division between power generation firms and power grids. The findings suggest that further regulatory change in China's electricity market reform is necessary when integration of the electricity markets and increased competition are paving the way ahead for a market-oriented structure. Prospective electricity regulation in the form of a strong legal system and effective institutions that protect market competition and promote appropriate incentives for efficiency are suggested in the paper. (author)

Research document no. 24. The integration of european electric markets: from the national markets juxtaposition to the establishment of a regional market; Cahier de recherche no. 24. L'integration des marches electriques europeens: de la juxtaposition de marches nationaux a l'etablissement d'un marche regional

Energy Technology Data Exchange (ETDEWEB)

Finon, D

2000-11-01

After the transcription of the electricity directive in national legislations, the European electricity market appears to be a vast set of juxtaposed markets which are weakly connected at the level of their wholesale contracts compartment. Referring to the technological peculiarities of electricity as a commodity, the paper identifies the direct conditions of regional integration of the electricity markets, those which would favour cross-border trade and allow to be near the normal functioning of a regional commodity market. The infrastructure network dependence and the need of a stringent technical coordination necessitate to unify the operation of the different systems and the rules of access, or at the least to come near this unification by strong coordination. A second major condition, which is not fully debated, is the increasing connexion of short-term markets, via daily physical trade and emergence of a European financial market, which could trade various standardised contracts referring to a single hourly spot price, or to prices in various delivery points. To reach such an integration, two paths are possible: either concentration into one single organised power exchange as the Nordic pool, or rules harmonization of the various power exchanges which would be a minimal requirement to allow arbitrations between them. (author)

Bulgarian electricity market restructuring

International Nuclear Information System (INIS)

Ganev, Peter

2009-01-01

The energy sector in Bulgaria has undergone major restructuring in recent years. It faces the dual challenges of achieving regulatory stability to attract private investors, and creating a functioning competition energy market. As of the EU Accession in 2007, Bulgaria has fully liberalized power and gas markets. The 2003 Energy Law establishes the energy sector legal framework and sets the basis for creation of a transparent and predictable regulatory environment where the key regulatory responsibilities are vested with the State Energy and Water Regulatory Commission (SEWRC). The energy sector experienced significant problems in the first half of 2007 due to lost production capacities and regulatory failures on the electricity market. Excess price regulations on the market of electricity supplies to household, coupled with insufficient liberalization of imports and exports, create unfavorable conditions for power producers and large electricity users. The energy regulator has tried to achieve several incompatible targets as of July 1, 2007 for maintaining low electricity prices for households in response to political pressure, low power generation prices amid rising input costs, and market opening in compliance with EU regulations. (author)

Investments in liberalised power markets

International Nuclear Information System (INIS)

Grenaa Jensen, S.; Meibom, P.

2005-01-01

There is considerable uncertainty in the Nordic electricity system with respect to the long-term development in production capacity. The process towards liberalisation of the electricity sector started with a situation of a large capacity margin, but this margin is gradually vanishing. Since the potential investors in new production capacity are unaccustomed with investments under the new regime, it is unknown if and when investments will take place. The purpose of the present study is to analyze if and when investors choose to invest in new electricity production capacity depending on their existing portfolio of power producing units. Electricity price scenarios generated with a partial equilibrium model (Balmorel) are combined with a model of investment decisions. In this, various scenarios concerning the development in the Nordic power market, such as new transmission lines between neighbouring countries, more installed wind power, and changes in CO 2 emission trading costs, are used to investigate the consequences for investments in a natural gas fired, combined cycle power plant. The main result of the analysis is that new investments are highly sensitive to investors existing power production portfolio, as new production units affect the merit order in the power market, i.e. compete with the existing power plants. (au)

Electricity prices and generator behaviour in gross pool electricity markets

International Nuclear Information System (INIS)

O'Mahoney, Amy; Denny, Eleanor

2013-01-01

Electricity market liberalisation has become common practice internationally. The justification for this process has been to enhance competition in a market traditionally characterised by statutory monopolies in an attempt to reduce costs to end-users. This paper endeavours to see whether a pool market achieves this goal of increasing competition and reducing electricity prices. Here the electricity market is set up as a sealed bid second price auction. Theory predicts that such markets should result with firms bidding their marginal cost, thereby resulting in an efficient outcome and lower costs to consumers. The Irish electricity system with a gross pool market experiences among the highest electricity prices in Europe. Thus, we analyse the Irish pool system econometrically in order to test if the high electricity prices seen there are due to participants bidding outside of market rules or out of line with theory. Overall we do not find any evidence that the interaction between generator and the pool in the Irish electricity market is not efficient. Thus, the pool element of the market structure does not explain the high electricity prices experienced in Ireland. - Highlights: • We consider whether a gross pool achieves competitive behaviour. • We analyse the Irish pool system econometrically. • Results indicate the Irish pool system appears to work efficiently. • Generators appear to be bidding appropriately

Changing health inequalities in the Nordic countries?

Science.gov (United States)

Lahelma, E; Lundberg, O; Manderbacka, K; Roos, E

2001-01-01

The Nordic countries, referring here to Denmark, Finland, Norway, and Sweden, have often been viewed as a group of countries with many features in common, such as geographical location, history, culture, religion, language, and economic and political structures. It has also been habitual to refer to a "Nordic model" of welfare states comprising a large public sector, active labour market policies, high costs for social welfare as well as high taxes, and a general commitment to social equality. Recent research suggests that much of this "Nordicness" appears to remain despite the fact that the Nordic countries have experienced quite different changes during the 1980s and 1990s. How this relates to changes in health inequalities is in the focus of this supplement.

Interconnections and market integration in the Irish Single Electricity Market

International Nuclear Information System (INIS)

Nepal, Rabindra; Jamasb, Tooraj

2012-01-01

Interconnections can be an effective way to increase competition and improve market integration in concentrated wholesale electricity markets with limited number of participants. This paper examines the potential for interconnections and increasing market integration in the Irish Single Electricity Market (SEM). We use a time-varying Kalman filter technique to assess the degree of market integration between SEM and other large, mature and interconnected wholesale electricity markets in Europe including Great Britain (GB). The results indicate no market integration between SEM and other European markets except for Elspot and GB. We show that the current state of market integration between SEM and GB is just 17% indicating potential to improve market integration via increased interconnector capacity. The results indicate that liquidity of wholesale markets might be a crucial factor in the market integration process while our results remain inconclusive in determining whether increased trade of renewables can improve market integration. - Highlights: ► We assess the degree of market integration between SEM and other EU electricity markets. ► Our results indicate no market integration between SEM and other European markets except for Elspot and GB. ► We show that the current state of market integration between SEM and GB is just 17%.

Economic regulation of electricity grids in Nordic countries

Energy Technology Data Exchange (ETDEWEB)

Robles, H.B.; EK, G. (Energy Markets Inspectorate, Eskilstuna (Sweden)); Ilonen, M.; Nurmi, S. (Energy Market Authority, Helsinki (Finland)); Moelgaard Jakobsen, N. (Danish Energy Regulatory Authority, Copenhagen (Denmark)); Syvertsen, S.C.; Steinnes, S.H. (Norwegian Water Resources and Energy Directorate, Oslo (Norway))

2011-12-15

This report is about the design of economic regulation of electricity companies in the Nordic countries. The purpose is to inform the interested reader on how the regulation of tariffs is designed. The intention is to give a short overview on the current economic regulation with an ambition to focus on differences and similarities. A common feature of the electricity distribution sector is that the industry structure consists of many independent companies with great differences in size and density of customers. This is contrary to what is common in other countries. The regulatory task can be more challenging with many separate utilities to regulate, especially if the industry is very heterogenous. In the appendices, the economic regulation of each country is presented in more detail. In the main text the focus is on differences and similarities. When comparing the regulations one can make two observations. On a superior level there are great similarities. All Nordic countries regulate the network companies by setting revenue caps. The legislation, the goals given to the regulators and the regulators general interpretation of the rules are to a great extent the same. The primary purposes are to prevent the monopolist to overcharge customers and to create a rational network industry. The regulation shall stimulate an effective management resulting in productivity development and optimal quality of the services. The differences in the Nordic economic regulations are in the details - in the setup of the regulatory models and choice of parameters. For instance; the assessment of a reasonable rate-of-return is done in all the regulations. When deciding this rate-of-return some countries use the method of weighted cost of capital (WACC) and capital asset pricing model (CAPM), other do not. Even when using the same method, the inputs in the model are not the same. Common for the regulatory models are the division of costs related to capital costs and operating costs. The

Electricity and gas market observatory. 1. quarter 2007

International Nuclear Information System (INIS)

2007-01-01

Since July 1, 2004, all electricity and gas consumers can be eligible according to their consumption site, as long as all or part of the electricity or gas consumed is designed for non-residential use. The purpose of the observatory is to provide the general public with indicators for monitoring market deregulation. It both covers the wholesale and retail electricity and gas markets in Metropolitan France. This observatory is updated every three months and data are available on CRE web-site (www.cre.fr). It presents: The electricity market; The retail electricity market: Eligible customer segments and their respective weights, Status at April 1, 2007, Dynamic analysis: 1. Quarter 2007; The wholesale electricity market: Traded volumes on the French wholesale electricity market and comparison with European markets, Prices on the French wholesale electricity market and European comparison, Import and export volumes, Concentration of the French electricity market, Striking facts of the 1. 2007 quarter; The gas market; The retail gas market: The eligible customer segments and their respective weights, Status at April 1. 2007; The wholesale gas market: Gas pricing and gas markets in Europe,The wholesale market in France. Some glossaries are attached to the document: Electricity and gas market observatories combined glossary; Specific electricity market observatory glossary; Specific gas market observatory glossary

Electricity and gas market observatory. 4. quarter 2006

International Nuclear Information System (INIS)

2007-01-01

Since July 1, 2004, all electricity and gas consumers can be eligible according to their consumption site, as long as all or part of the electricity or gas consumed is designed for non-residential use. The purpose of the observatory is to provide the general public with indicators for monitoring market deregulation. It both covers the wholesale and retail electricity and gas markets in Metropolitan France. This observatory is updated every three months and data are available on CRE web-site (www.cre.fr). It presents: The electricity market; The retail electricity market: Eligible customer segments and their respective weights, Status at January 1, 2007, Dynamic analysis: 4. Quarter 2007; The wholesale electricity market: Traded volumes on the French wholesale electricity market and comparison with European markets, Prices on the French wholesale electricity market and European comparison, Import and export volumes, Concentration of the French electricity market, Striking facts of the 4. 2006 quarter; The gas market; The retail gas market: The eligible customer segments and their respective weights, Status at January 1. 2007; The wholesale gas market: Gas pricing and gas markets in Europe,The wholesale market in France. Some glossaries are attached to the document: Electricity and gas market observatories combined glossary; Specific electricity market observatory glossary; Specific gas market observatory glossary

Electricity and gas market observatory. 1. quarter 2007

Energy Technology Data Exchange (ETDEWEB)

NONE

2007-07-01

Since July 1, 2004, all electricity and gas consumers can be eligible according to their consumption site, as long as all or part of the electricity or gas consumed is designed for non-residential use. The purpose of the observatory is to provide the general public with indicators for monitoring market deregulation. It both covers the wholesale and retail electricity and gas markets in Metropolitan France. This observatory is updated every three months and data are available on CRE web-site (www.cre.fr). It presents: The electricity market; The retail electricity market: Eligible customer segments and their respective weights, Status at April 1, 2007, Dynamic analysis: 1. Quarter 2007; The wholesale electricity market: Traded volumes on the French wholesale electricity market and comparison with European markets, Prices on the French wholesale electricity market and European comparison, Import and export volumes, Concentration of the French electricity market, Striking facts of the 1. 2007 quarter; The gas market; The retail gas market: The eligible customer segments and their respective weights, Status at April 1. 2007; The wholesale gas market: Gas pricing and gas markets in Europe,The wholesale market in France. Some glossaries are attached to the document: Electricity and gas market observatories combined glossary; Specific electricity market observatory glossary; Specific gas market observatory glossary.

Electricity and gas market observatory. 4. quarter 2006

Energy Technology Data Exchange (ETDEWEB)

NONE

2007-07-01

Since July 1, 2004, all electricity and gas consumers can be eligible according to their consumption site, as long as all or part of the electricity or gas consumed is designed for non-residential use. The purpose of the observatory is to provide the general public with indicators for monitoring market deregulation. It both covers the wholesale and retail electricity and gas markets in Metropolitan France. This observatory is updated every three months and data are available on CRE web-site (www.cre.fr). It presents: The electricity market; The retail electricity market: Eligible customer segments and their respective weights, Status at January 1, 2007, Dynamic analysis: 4. Quarter 2007; The wholesale electricity market: Traded volumes on the French wholesale electricity market and comparison with European markets, Prices on the French wholesale electricity market and European comparison, Import and export volumes, Concentration of the French electricity market, Striking facts of the 4. 2006 quarter; The gas market; The retail gas market: The eligible customer segments and their respective weights, Status at January 1. 2007; The wholesale gas market: Gas pricing and gas markets in Europe,The wholesale market in France. Some glossaries are attached to the document: Electricity and gas market observatories combined glossary; Specific electricity market observatory glossary; Specific gas market observatory glossary.

Market research for electric utilities

International Nuclear Information System (INIS)

Shippee, G.

1999-01-01

Marketing research is increasing in importance as utilities become more marketing oriented. Marketing research managers need to maintain autonomy from the marketing director or ad agency and make sure their work is relevant to the utility's operation. This article will outline a model marketing research program for an electric utility. While a utility may not conduct each and every type of research described, the programs presented offer a smorgasbord of activities which successful electric utility marketers often use or have access to

Energy system, electricity market and economic studies on increasing nuclear power capacity; Ydinvoimahankkeiden periaatepaeaetoekseen liittyvaet energia- ja kansantaloudelliset selvitykset

Energy Technology Data Exchange (ETDEWEB)

Forsstrom, J.; Pursiheimo, E.; Kekkonen, V.; Honkatukia, J.

2010-04-15

Objective of this research project is to examine effects of addition of nuclear capacity from three different angles by using energy system, electricity market and economic analysis. In each area the analysis is based on computational methods. Finland is a member of Nordic electricity market which is further connected to networks of Continental Europe and Russia. Due to the foreign connections Finland has been able to import inexpensive electricity from its neighboring countries and this state is expected to continue. Addition of nuclear capacity lowers electricity import demand, affects level of electricity price decreasingly and decreases shortfall of installed production capacity. Substantial additions of nuclear power capacity and generous import supply have disadvantageous effect on profitability of combined heat and power production. The development of import possibilities depends on progression of difficult-to-estimate balance between electricity consumption and production in the neighboring countries. Investments on nuclear power increase national product during the construction phase. Growth of employment is also rather significant, especially during the construction phase. In the long term permanent jobs will be created too. Increase of employment is held back by increasing real wages, but it is though evident that consumer purchasing power is improved due to these nuclear power developments. (orig.)

Market research for electric utilities

Energy Technology Data Exchange (ETDEWEB)

Shippee, G.

1999-12-01

Marketing research is increasing in importance as utilities become more marketing oriented. Marketing research managers need to maintain autonomy from the marketing director or ad agency and make sure their work is relevant to the utility's operation. This article will outline a model marketing research program for an electric utility. While a utility may not conduct each and every type of research described, the programs presented offer a smorgasbord of activities which successful electric utility marketers often use or have access to.

Simulations of the development in the Nordic power market

International Nuclear Information System (INIS)

2002-01-01

This report examines the development of prices, production, trade and CO 2 emission in the power markets in Scandinavia and Germany up to 2012. Simulations of a reference course indicate relatively strong growth of the power consumption. In combination with a modest development of the capacity in the short run, the growing consumption causes the prices to rise. Little by little it becomes profitable to build new gas power in Norway and Germany and a common quota market for CO 2 emissions makes it possible. Sweden and Finland will have an increasing power deficiency. The results vary in step with the variation in water supply but the adaptation is largely taken in the Nordic countries: in dry years, consumption is considerably reduced while the import from Germany increases modestly. Increasing the CO 2 tax with 150 per cent increases the prices and lowers the CO 2 emission, but not enough to comply with the Kyoto agreement. The impact of a new nuclear power plant in Finland will be less gas power and reduced emission of CO 2 in Norway. Finally, the calculations show that a scenario for which the climate goals are to be fulfilled nationally requires strong measures in the form of retrenchment on the consumer side, and the development of new capacity based on renewable energy sources in addition to scrapping and converting coal power plants

Outlook for electricity markets 2005-2006 : an energy market assessment

International Nuclear Information System (INIS)

2005-06-01

The National Energy Board monitors the supply of electricity as well as its demand in both domestic and export markets. This document was produced in response to a survey with power generation, transmission and distribution companies, marketers, end-users, environmental groups and government agencies who demonstrated the need for more short-and medium-term energy market assessments to supplement the Board's longer term energy analysis. It on the short-term (2005-2006) issues that can have a long-term effect on the electricity sector. The document presents an analysis of Canadian electricity markets with particular focus on the main drivers affecting current trends in generation, demand, prices, infrastructure additions, and inter-regional and international trade. Current restructuring activities in Canada's electricity industry were also described along with the close relationship between the electricity sectors in Canada and the United States which stems from the integrated nature of the North American power grid. A regional market assessment and a summary was provided for each of Canada's provinces and territories with reference to market structure and current market developments. It was revealed that Canada's electricity markets have developed along provincial or regional boundaries. Utilities have tried to provide adequate and reliable electricity supply, environmental sustainability and acceptable electricity prices. It was concluded that supply is adequate in all regions in the short-term, but tight supply conditions could emerge as early as 2007. Alternative and renewable resource and demand management are becoming more important in addressing air quality issues and supply adequacy. Since uncertainty may delay investment and development of new infrastructure, utilities may be forced to increase electricity prices. It was suggested that interprovincial energy transfers should be further explored. Five recommendations were presented to address the key

Electricity and gas market observatory. 2. Quarter 2008

International Nuclear Information System (INIS)

2008-01-01

The purpose of the observatory is to provide the general public with indicators for monitoring market deregulation. It both covers the wholesale and retail electricity and gas markets in Metropolitan France. This observatory is updated every three months and data are available on CRE web site (www.cre.fr). Since the 1 of July 2007, all customers can choose their gas and electricity suppliers. Content: A - The electricity market: The retail electricity market (Introduction, Customer segments and their respective weight, Status at June 30, 2008, Dynamic analysis: 2. Quarter 2008); The wholesale electricity market (Introduction, Wholesale market activity in France, Prices on the French wholesale market and European comparison, Import and export volumes, Concentration of the French electricity market); B - The gas market: The retail gas market (Introduction, Customer segments and their respective weight, Status on June 30, 2008, Dynamic analysis: 2. Quarter 2008); The wholesale gas market (Gas pricing and gas markets in Europe, The wholesale market in France); C - Appendices: Electricity and gas market observatories combined glossary, Specific electricity market observatory glossary, Specific gas market observatory glossary

Electricity and gas market observatory. 1. Quarter 2007

International Nuclear Information System (INIS)

2007-01-01

Since July 1, 2004, all electricity and gas consumers can be eligible according to their consumption site, as long as all or part of the electricity or gas consumed is designed for non-residential use. The purpose of the observatory is to provide the general public with indicators for monitoring market deregulation. It both covers the wholesale and retail electricity and gas markets in Metropolitan France. This observatory is updated every three months and data are available on CRE web site (www.cre.fr). It completes the information already published by CRE: - practical information for eligible customers: consumer guide, list of suppliers, - communications regarding markets running; CRE's annual activity report. Content: A - The electricity market: The retail electricity market (Introduction, Eligible customer segments and their respective weights, Status at April 1, 2007, Dynamic analysis: 1. Quarter 2007); The wholesale electricity market (Introduction, Traded volumes on the French wholesale electricity market and comparison with European markets, Prices on the French wholesale electricity market and European comparison, Import and export volumes, Concentration of the French electricity market, Striking facts of the 1. 2007 quarter); B - The gas market: The retail gas market (Introduction, The eligible customer segments and their respective weights, Status at April 1, 2007); The wholesale gas market (Gas pricing and gas markets in Europe, The wholesale market in France); C - Appendices: Electricity and gas market observatories combined glossary, Specific electricity market observatory glossary, Specific gas market observatory glossary

Electricity and gas market observatory. 4. Quarter 2006

International Nuclear Information System (INIS)

2006-01-01

Since July 1, 2004, all electricity and gas consumers can be eligible according to their consumption site, as long as all or part of the electricity or gas consumed is designed for non-residential use. The purpose of the observatory is to provide the general public with indicators for monitoring market deregulation. It both covers the wholesale and retail electricity and gas markets in Metropolitan France. This observatory is updated every three months and data are available on CRE web site (www.cre.fr). It completes the information already published by CRE: - practical information for eligible customers: consumer guide, list of suppliers, - communications regarding markets running; CRE's annual activity report. Content: A - The electricity market: The retail electricity market (Introduction, Eligible customer segments and their respective weights, Status at January 1, 2007, Dynamic analysis: 4. Quarter 2006); The wholesale electricity market (Introduction, Traded volumes on the French wholesale electricity market and comparison with European markets, Prices on the French wholesale electricity market and European comparison, Import and export volumes, Concentration of the French electricity market, Striking facts of the 4. 2006 quarter); B - The gas market: The retail gas market (Introduction, The eligible customer segments and their respective weights, Status at January 1, 2007); The wholesale gas market (Gas pricing and gas markets in Europe, The wholesale market in France); C - Appendices: Electricity and gas market observatories combined glossary, Specific electricity market observatory glossary, Specific gas market observatory glossary

Harmonization of electric power taxation in the Nordic countries - prospects and consequences

International Nuclear Information System (INIS)

Jacobsen, S.H.

1997-01-01

Fuel taxes are the most efficient measure to make electricity production more environmentally benign in a liberalised market. If air pollution is to be reduced in a cost-effective manner, the sources of pollution must be directly taxed. In a liberalised electricity market, this means that emissions of, for example, CO 2 will have to be taxed on the same terms in all countries that are part of this market. This will result in a cost-effective reduction of emissions. However, if these taxes are not harmonised on the international level, there is a risk of market distortion in favour of non-taxed electricity producers. (au)

Analysis of electricity price in Danish competitive electricity market

DEFF Research Database (Denmark)

Hu, Weihao; Chen, Zhe; Bak-Jensen, Birgitte

2012-01-01

electricity markets in some ways, is chosen as the studied power system. 10 year actual data from the Danish competitive electricity market are collected and analyzed. The relationship among the electricity price (both the spot price and the regulation price), the consumption and the wind power generation...... in an electricity market is investigated in this paper. The spot price and the regulation price generally decrease when the wind power penetration in the power system increases or the consumption of the power system decreases. The statistical characteristics of the spot price and the regulation price for different...... consumption periods and wind power penetration are analyzed. Simulation results show that the findings of this paper are useful for wind power generation companies to make the optimal bidding strategy so that the imbalance cost of trading wind power on the electricity market could be reduced....

Electricity and gas market observatory. 4. Quarter 2008

International Nuclear Information System (INIS)

2008-01-01

The purpose of the observatory is to provide the general public with indicators for monitoring market deregulation. It both covers the wholesale and retail electricity and gas markets in Metropolitan France. This observatory is updated every three months and data are available on CRE web site (www.cre.fr). Since the 1 of July 2007, all customers can choose their gas and electricity suppliers. Content: A - The electricity market: The retail electricity market (Introduction, Customer segments and their respective weight, Status on December 31, 2008, Dynamic analysis: 4. Quarter 2008); The wholesale electricity market (Introduction, Wholesale market activity in France, Prices on the French wholesale market and European comparison, Import and export volumes, Concentration of the French electricity market); B - The gas market: The retail gas market (Introduction, Customer segments and their respective weight, Status on December 31, 2008, Dynamic analysis: 4. Quarter 2008); The wholesale gas market (Gas pricing and gas markets in Europe, The wholesale market in France, Prices on the French wholesale market and European comparison, Concentration of the French gas market); C - Appendices: Electricity and gas market observatories combined glossary, Specific electricity market observatory glossary, Specific gas market observatory glossary

Electricity market opening and electricity generation system's expansion in Slovenia

International Nuclear Information System (INIS)

Kosnjek, Z.; Vidmar, M.; Bregar, Z.

2000-01-01

Slovenia is rapidly adopting the European Union (EU) legislation to make itself ready to be admitted the fifteen EU member countries. In the area of energy or electricity supply industry, Slovenia has consequently enforced the Energy law, which in its essence follows the idea of the Directive 96/92/EC. Globally, the Directive defines common rules of the internal electricity market within EU. Any EU member country is responsible for assuring a competitive electricity market and implementing corresponding instruments as foreseen by the Directive. The share of the national market opening is calculated on the basis of eligible customers' consumption versus the overall consumption in a particular member country. Also, the Directive defines the rate of the electricity market opening. It is interesting to note that the EU member countries have been opening their national electricity markets at a greater speed than specified by the Directive. The overall Slovenian Electricity Supply Industry shall have to adapt itself to new imperatives, whereby the greatest changes will by all means take place in the area of electricity generation. As the reaction of eligible domestic market customers is quite unpredictable, the direct electricity import from foreign countries can only be estimated on a variant basis. EU countries that have deregulated their electricity market have been, step by step, gaining valuable experiences. The majority of them show a considerable pressure on having prices of the EPS generation sector reduced. A similar development can by all means be expected in Slovenia, too. it is expected that the major burden of the electricity market liberalisation and electric power interconnecting within EU will be carried by the EPS generation sector. The analyses of developed variants show that the burden, imposed by the transition onto the market economy, will be predominantly carried by the coal fired electricity supply industry. Further development of electricity

Electricity and gas market observatory. 3. Quarter 2007

International Nuclear Information System (INIS)

2007-01-01

The purpose of the observatory is to provide the general public with indicators for monitoring market deregulation. It both covers the wholesale and retail electricity and gas markets in Metropolitan France. This observatory is updated every three months and data are available on CRE web site (www.cre.fr). Since the 1 of July 2007, all customers can choose their gas and electricity suppliers. The present observatory is including residential customer's statistics. Content: A - The electricity market: The retail electricity market (Introduction, Customer segments and their respective weight, Status at September 30, 2007, Dynamic analysis: 3. Quarter 2007); The wholesale electricity market (Introduction, Wholesale market activity in France, Wholesale market activity in France, Prices on the French wholesale market and European comparison, Import and export volumes, Concentration of the French electricity market); B - The gas market: The retail gas market (Introduction, Customer segments and their respective weight, Status on September 30, 2007, Dynamic analysis: 3. Quarter 2007); The wholesale gas market (Gas pricing and gas markets in Europe, The wholesale market in France); C - Appendices: Electricity and gas market observatories combined glossary, Specific electricity market observatory glossary, Specific gas market observatory glossary

Grid Integration of Electric Vehicles in Open Electricity Markets

DEFF Research Database (Denmark)

congestion management scenario within electric distribution networks •optimal EV charging management with the fleet operator concept and smart charging management •EV battery technology, modelling and tests •the use of EVs for balancing power fluctuations from renewable energy sources, looking at power......Presenting the policy drivers, benefits and challenges for grid integration of electric vehicles (EVs) in the open electricity market environment, this book provides a comprehensive overview of existing electricity markets and demonstrates how EVs are integrated into these different markets...... of the technologies for EV integration, this volume is informative for research professors and graduate students in power systems; it will also appeal to EV manufacturers, regulators, EV market professionals, energy providers and traders, mobility providers, EV charging station companies, and policy makers....

Electricity market players subgroup report

International Nuclear Information System (INIS)

Borison, A.

1990-03-01

The purpose of this study is to examine competition in the electric power industry from an ''industrial organization'' point of view. The remainder of this report is organized as follows. Chapter 2 describes the ''industrial organization'' approach used to analyze the electric power market. Industrial organization emphasizes specific market performance criteria, and the impact of market structure and behavior on performance. Chapter 3 identifies the participants in the electric power market, grouped primarily into regulated producers, unregulated producers, and consumers. Chapter 4 describes the varieties of electric power competition, organized along two dimensions: producer competition and consumer competition. Chapters 5 and 6 identify the issues raised by competition along the two dimensions. These issues include efficiency, equity, quality, and stability. Chapters 7 through 9 describe market structure, behavior and performance in three competitive scenarios: minimum competition, maximum competition, and moderate competition. Market structure, behavior and performance are discussed, and the issues raised in Chapters 5 and 6 are discussed in detail. Chapter 10 provides conclusions about ''winners and losers'' and identifies issues that require further study

[The manpower market for physicians in the Nordic countries 1980-2000].

Science.gov (United States)

Skoglund, E; Taraldset, A

2000-06-30

The ratio between population and active physicians in the Nordic countries has improved from 488 inhabitants per physician in 1980 to 315 in 2000. There is a large mobility of physicians between the countries, contributing to levelling out swings in demand and supply of manpower. Language and culture being similar, physicians can easily adjust to working in a neighbouring country. Iceland is special in this respect, as a surplus of Icelandic physicians has always found work in the other Nordic countries. Of course, their numbers are small relative to the total number of active physicians in the Nordic countries, now approximately 76,000. The number of students admitted to Nordic medical faculties has changed in line with swings in estimated future demand for manpower. Today, numbers are increasing again; this year, approximately 2,900 students will be admitted. Norway stands apart from the other Nordic countries in terms of medical manpower needs. During the last 20 years there has been a continuous shortage of physicians while all the other countries have been through periods of surplus and unemployment among physicians. Manpower forecasts in the early 1980s underestimated the growth in the health care system and hence the demand for medical manpower.

Electricity and gas market observatory. 2. quarter 2007

International Nuclear Information System (INIS)

2007-01-01

Since July 1, 2004, all electricity and gas consumers can be eligible according to their consumption site, as long as all or part of the electricity or gas consumed is designed for non-residential use. The purpose of the observatory is to provide the general public with indicators for monitoring market deregulation. It both covers the wholesale and retail electricity and gas markets in Metropolitan France. This observatory is updated every three months and data are available on CRE web-site (www.cre.fr). It presents: The electricity market; The retail electricity market: Non-residential customer segments and their respective weights, Status at July 1, 2007, Dynamic analysis: 2. Quarter 2007; The wholesale electricity market: Wholesale market activity in France, Prices on the French wholesale market and European comparison, Import and export volumes, Concentration of the French electricity market, Striking facts of the second quarter 2007; The gas market; The retail gas market: The non-residential customer segments and their respective weights, Status at July 1. 2007; The wholesale gas market: Gas pricing and gas markets in Europe,The wholesale market in France. Some glossaries are attached to the document: Electricity and gas market observatories combined glossary; Specific electricity market observatory glossary; Specific gas market observatory glossary

Electricity and gas market observatory. 2. quarter 2007

Energy Technology Data Exchange (ETDEWEB)

NONE

2007-07-01

Since July 1, 2004, all electricity and gas consumers can be eligible according to their consumption site, as long as all or part of the electricity or gas consumed is designed for non-residential use. The purpose of the observatory is to provide the general public with indicators for monitoring market deregulation. It both covers the wholesale and retail electricity and gas markets in Metropolitan France. This observatory is updated every three months and data are available on CRE web-site (www.cre.fr). It presents: The electricity market; The retail electricity market: Non-residential customer segments and their respective weights, Status at July 1, 2007, Dynamic analysis: 2. Quarter 2007; The wholesale electricity market: Wholesale market activity in France, Prices on the French wholesale market and European comparison, Import and export volumes, Concentration of the French electricity market, Striking facts of the second quarter 2007; The gas market; The retail gas market: The non-residential customer segments and their respective weights, Status at July 1. 2007; The wholesale gas market: Gas pricing and gas markets in Europe,The wholesale market in France. Some glossaries are attached to the document: Electricity and gas market observatories combined glossary; Specific electricity market observatory glossary; Specific gas market observatory glossary.

Ten perspectives on Nordic energy

Energy Technology Data Exchange (ETDEWEB)

Tennbakk, Berit

2006-10-15

Summary: Perspective no. 1: Costly early learning from the EU ETS - Unforeseen price levels hit industries hard; Perspective no. 2: Market based support schemes - Do they work as intended? Perspective no. 3: New decade in the Nordic energy markets. Perspective no. 4: Reduced CO{sub 2} emissions and more renewables - Are we getting there or not? Perspective no. 5: Interpretation of financial requirements - An impediment to sound investments? Perspective no. 6: Who should invest in infrastructure - Public or private investors? Perspective no. 7: Re regulation is not the answer - Need for coordination calls for a visible hand? Perspective no. 8: Increased infrastructure investments - Due to EU ETS and support schemes for RES. Perspective no. 9: Energy, welfare and industry - Complex links make policy making difficult. Perspective no. 10 'Fuel' for an energy policy discussion - A Nordic energy policy agenda? (AG)

Electricity and gas market observatory. 1. Quarter 2008

International Nuclear Information System (INIS)

2008-01-01

The purpose of the observatory is to provide the general public with indicators for monitoring market deregulation. It both covers the wholesale and retail electricity and gas markets in Metropolitan France. This observatory is updated every three months and data are available on CRE web site (www.cre.fr). Since the 1. of July 2007, all customers can choose their gas and electricity suppliers. Content: A - The electricity market: The retail electricity market (Introduction, Customer segments and their respective weight, Status at March 31, 2007, Dynamic analysis: 1. Quarter 2008); The wholesale electricity market (Introduction, Wholesale market activity in France, Prices on the French wholesale market and European comparison, Import and export volumes, Concentration of the French electricity market); B - The gas market: The retail gas market (Introduction, Customer segments and their respective weight, Status on March 31, 2008, Dynamic analysis: 1. Quarter 2008); The wholesale gas market (Gas pricing and gas markets in Europe, The wholesale market in France, Striking fact of the first quarter 2008); C - Appendices: Electricity and gas market observatories combined glossary, Specific electricity market observatory glossary, Specific gas market observatory glossary

Electricity and gas market observatory. 4. Quarter 2007

International Nuclear Information System (INIS)

2007-01-01

The purpose of the observatory is to provide the general public with indicators for monitoring market deregulation. It both covers the wholesale and retail electricity and gas markets in Metropolitan France. This observatory is updated every three months and data are available on CRE web site (www.cre.fr). Since the 1. of July 2007, all customers can choose their gas and electricity suppliers. Content: A - The electricity market: The retail electricity market (Introduction, Customer segments and their respective weight, Status at December 31, 2007, Dynamic analysis: 4. Quarter 2007); The wholesale electricity market (Introduction, Wholesale market activity in France, Prices on the French wholesale market and European comparison, Import and export volumes, Concentration of the French electricity market, Striking fact of the fourth quarter 2007); B - The gas market: The retail gas market (Introduction, Customer segments and their respective weight, Status on December 31. 2007, Dynamic analysis: 4. Quarter 2007); The wholesale gas market (Gas pricing and gas markets in Europe, The wholesale market in France, Striking fact of the fourth quarter 2007); C - Appendices: Electricity and gas market observatories combined glossary, Specific electricity market observatory glossary, Specific gas market observatory glossary

Electricity and gas market observatory 1. Quarter 2009

International Nuclear Information System (INIS)

2009-01-01

The purpose of the observatory is to provide the general public with indicators for monitoring market deregulation. It both covers the wholesale and retail electricity and gas markets in Metropolitan France. This observatory is updated every three months and data are available on CRE web site (www.cre.fr). Since the 1. of July 2007, all customers can choose their gas and electricity suppliers. Content: A - The electricity market: The retail electricity market (Introduction, Customer segments and their respective weight, Status on March 31, 2009, Dynamic analysis: 1. Quarter 2009), The wholesale electricity market (Introduction, Wholesale market activity in France, Prices on the French wholesale market and European comparison, Import and export volumes, Concentration of the French electricity market). B - The gas market: The retail gas market (Introduction, Customer segments and their respective weight, Status on March 31. 2009, Dynamic analysis: 1. Quarter 2009), The wholesale gas market (Main steps in the French Wholesale gas market, Gas pricing and gas markets in Europe, The wholesale market in France, Prices on the French wholesale market and European comparison, Concentration of the French gas market) C - Appendices: Electricity and gas market observatories combined glossary, Specific electricity market observatory glossary, Specific gas market observatory glossary

Design choices for electricity markets

Energy Technology Data Exchange (ETDEWEB)

De Vries, Laurens

2007-07-01

Ten years after the first European Electricity Directive, the goal of creating a single European electricity market has not been reached, despite concerted efforts by the EU and certain member states to continue with the reforms. The policy of subsidiarity for many aspects of market design has as a consequence that member countries are implementing a variety of different market designs and are implementing the reforms at varying speeds. The Florence regulatory process, which was intended to provide a bottom-up approach for coordination and harmonization, has effectively stalled and been replaced by a series of 'mini fora' in which smaller groups of countries work on integrating their markets. At the same time, the European electricity supply industry is facing some significant challenges. This paper investigates the different choices that can be made in the design of electricity markets, how they relate to each other and how they relate to the policy goals. (auth)

The Swedish Energy Market 2005

International Nuclear Information System (INIS)

2005-10-01

The Swedish Energy Market, 2005 is an annual publication that presents information and statistics on the network based energy markets in Sweden, i.e. the markets for electricity, natural gas and district heating. It also provides an overview of the issues that have arisen on these markets during the second half of 2004 and the first half of 2005. Considerable work is being carried out in the EU on creating a single market for electricity and natural gas. This publication therefore describes expansion of the Swedish market towards a Nordic and a European market. The publication normally includes a theme chapter, describing some event of particular interest for the Swedish energy market during the year. This year, the theme chapter is devoted to the Storm Gudrun, which struck the south of the country at the beginning of January, and its effects on electricity supply throughout the country. The chapter is based on the report submitted to the Government by the Energy Markets Inspectorate in the spring of 2005, and also includes a summary of the Inspectorate's proposals for measures to improve the security of electricity transmission. Energy in Sweden, which is another of the Swedish Energy Agency's annual publications, provides information and statistics on the development of the entire Swedish energy system

Capacity Market Design: Motivation and Challenges in Alberta’s Electricity Market

Directory of Open Access Journals (Sweden)

David Brown

2018-03-01

Full Text Available Alberta’s electricity market is currently undergoing a period of substantial transition. The province should proceed with caution as it switches from an energy-only electricity market to a capacity market by 2021. Many other jurisdictions have already made the changeover and Alberta can learn from their experiences in order to avoid common mistakes and pitfalls that can arise with the deployment of a capacity market.There were growing concerns that the existing electricity market structure would not attract sufficient investment from conventional generation (e.g., natural gas due to the increased penetration of zero marginal cost renewable generation. As a result, the Alberta government has chosen to transition to a capacity market. For consumers, a capacity market aims to ensure there is sufficient investment in new generation capacity to “keep the lights on” and reduce price swings in the wholesale market. The capacity market will also help the province meet its goals for attracting investors and transitioning away from its dependence on coal-fired electricity generation.However, a switchover is not as simple as it sounds. In an energy-only market, firms are paid solely based on the provision of electricity in hourly wholesale markets. In capacity markets, electricity-generating firms are also paid for providing generation capacity, reflecting the potential to provide electricity at some point in the future. While capacity markets can help ensure there is a reliable supply of electricity, there are several challenges in the implementation of capacity markets. This paper discusses the motivation for the adoption of capacity markets, highlights challenges regulators face when implementing this market design in the context of Alberta, and summarizes the key trade-offs associated with energy-only versus capacity market designs.Relative to an energy-only market, a capacity market is more complex and requires that regulators specify numerous

Dry years in the North. Nordic reactions

International Nuclear Information System (INIS)

2003-01-01

This document deals with how authorities, politicians and people in general reacted to the dry autumn and winter with respect to the high prices on electric power and the risk of power rationing throughout the following spring. Even though we have a common Nordic power market, the degree of interest and thematic focus differ from one country to another. In Denmark, people have focused on the high prices in the spot market, what happens to Barsebaeck (the nuclear power plant on the Swedish west coast, just opposite the 1.7 mill citizens of Greater Copenhagen), and how to secure sufficient capacity in the future. Finland has focused mostly on the development of nuclear power and on energy saving. In Sweden, the emphasis has been on the danger of frequent power cuts and the consequences of a possible discontinuation of nuclear power. In Norway, above all the high prices to be paid by the end-users have created big headlines and hot debate in the newspapers

The European electricity market

International Nuclear Information System (INIS)

1988-01-01

The creation of a single European market also will have its effects on the power and electricity sector. Expectations tied to this abandonment of borders on the electricity market are different: some hope for a reduction of energy costs, others fear safeguarded supplies to be at risk. It cannot be fully judged at present what the situation will be on a strongly integrated, European power and electricity market, and the brochure in hand is intended to present a first survey of the situation from the perspective of the power industry and energy policy, concentrating on main aspects. The survey is compiled in the form of reprints of journal articles written on this topic by a number of well-known German experts in the field. (orig./HP) [de

Capacity Market Design: Motivation and Challenges in Alberta’s Electricity Market

OpenAIRE

David Brown

2018-01-01

Alberta’s electricity market is currently undergoing a period of substantial transition. The province should proceed with caution as it switches from an energy-only electricity market to a capacity market by 2021. Many other jurisdictions have already made the changeover and Alberta can learn from their experiences in order to avoid common mistakes and pitfalls that can arise with the deployment of a capacity market.There were growing concerns that the existing electricity market structure wo...

Impact of Germany's energy transition on the Nordic power market – A market-based multi-region energy system model

DEFF Research Database (Denmark)

Zakeri, Behnam; Virasjoki, Vilma; Syri, Sanna

2016-01-01

-level benefits (social welfare) will improve in the Nordic region after Germany's Energiewende. However, this gain is not equally distributed among different Nordic countries and across different stakeholders. Furthermore, the Energiewende slightly increases carbon emissions from power and district heating (DH......) sectors, and reduces the flexibility in integration of VRE in some Nordic countries like Denmark. The direct interconnection of Norway and Germany through NordLink will contribute to the flexibility in wind integration in other Nordic countries, such as Denmark and Finland....

The green electricity market model. Proposal for an optional, cost-neutral direct marketing model for supplying electricity customers

International Nuclear Information System (INIS)

Heinemann, Ronald

2014-01-01

One of the main goals of the Renewable Energy Law (EEG) is the market integration of renewable energy resources. For this purpose it has introduced compulsory direct marketing on the basis of a moving market premium. At the same time the green electricity privilege, a regulation which made it possible for customers to be supplied with electricity from EEG plants, has been abolished without substitution with effect from 1 August 2014. This means that, aside from other direct marketing channels, which will not be economically viable save for in a few exceptional cases, it will no longer be possible in future to sell electricity from EEG plants to electricity customers under the designation ''electricity from renewable energy''. The reason for this is that electricity sold under the market premium model can no longer justifiably be said to originate from renewable energy. As a consequence, almost all green electricity products sold in Germany carry a foreign green electricity certificate.

Does wind energy mitigate market power in deregulated electricity markets?

International Nuclear Information System (INIS)

Ben-Moshe, Ori; Rubin, Ofir D.

2015-01-01

A rich body of literature suggests that there is an inverse relationship between wind power penetration rate into the electricity market and electricity prices, but it is unclear whether these observations can be generalized. Therefore, in this paper we seek to analytically characterize market conditions that give rise to this inverse relationship. For this purpose, we expand a recently developed theoretical framework to facilitate flexibility in modeling the structure of the electric industry with respect to the degree of market concentration and diversification in the ownership of wind power capacity. The analytical results and their attendant numerical illustrations indicate that the introduction of wind energy into the market does not always depress electricity prices. Such a drop in electricity prices is likely to occur when the number of firms is large enough or the ownership of wind energy is sufficiently diversified, or most often a combination of the two. Importantly, our study defines the circumstances in which the question of which type of firm invests in wind power capacity is crucial for market prices. - Highlights: • Studies show that electricity prices decrease with increased wind power capacity. • We investigate market conditions that give rise to this inverse relationship. • Average prices for wind energy are systematically lower than average market prices. • Conventional generation firms may increase market power by investing in wind farms. • Energy policy should seek to diversify the ownership of wind power capacity

Rearrangement of the electricity tax - what it means for the power market

International Nuclear Information System (INIS)

2003-01-01

The industries are currently practically exempt from electricity tax. The Government has signalled that it considers removing it for any other business sector. If the electricity tax is removed, this will above all benefit the service sector. According to model calculations, such an exemption will increase the Norwegian electricity consumption by 1.2 TWh in 2005. The effect is the same for 2008. About 0.2 TWh of this increase comes in the boiler market. This will cause the power import to Norway and the Nordic country to increase, which represents an increase in the emission of carbon dioxide of about 1 mill tonnes (mostly on the Continent). In Norway, consumption will increase by 1.5 TWh for a wet year and only 0.9 TWh for a dry year. If the exemption from the electricity tax is followed by exemption from restricted rate on mineral oil, then the total increase of the power consumption will be only 0.4 TWh in a normal year. Exemption from restricted rate will reduce the power consumption by 0.4 TWh. Reduced tax on fuel oil will not compensate the exemption from electricity tax in the service sector. Exemption of the whole public sector from electricity tax has also been considered. Consumption will then increase by 1.8 TWh in 2005, or by 0.6 TWh if the restricted rate is also removed. The result will be about the same for 2008.

Measuring market performance in restructured electricity markets: An empirical analysis of the PJM energy market

Science.gov (United States)

Tucker, Russell Jay

2002-09-01

Today the electric industry in the U.S. is transitioning to competitive markets for wholesale electricity. Independent system operators (ISOs) now manage broad regional markets for electrical energy in several areas of the U.S. A recent rulemaking by the Federal Energy Regulatory Commission (FERC) encourages the development of regional transmission organizations (RTOs) and restructured competitive wholesale electricity markets nationwide. To date, the transition to competitive wholesale markets has not been easy. The increased reliance on market forces coupled with unusually high electricity demand for some periods have created conditions amenable to market power abuse in many regions throughout the U.S. In the summer of 1999, hot and humid summer conditions in Pennsylvania, New Jersey, Maryland, Delaware, and the District of Columbia pushed peak demand in the PJM Interconnection to record levels. These demand conditions coincided with the introduction of market-based pricing in the wholesale electricity market. Prices for electricity increased on average by 55 percent, and reached the $1,000/MWh range. This study examines the extent to which generator market power raised prices above competitive levels in the PJM Interconnection during the summer of 1999. It simulates hourly market-clearing prices assuming competitive market behavior and compares these prices with observed market prices in computing price markups over the April 1-August 31, 1999 period. The results of the simulation analysis are supported with an examination of actual generator bid data of incumbent generators. Price markups averaged 14.7 percent above expected marginal cost over the 5-month period for all non-transmission-constrained hours. The evidence presented suggests that the June and July monthly markups were strongly influenced by generator market power as price inelastic peak demand approached the electricity generation capacity constraint of the market. While this analysis of the

Hong Kong's electricity market beyond 2008

International Nuclear Information System (INIS)

Lam, Pun Lee

2004-01-01

In Hong Kong, electricity is supplied by two private utilities: Hongkong Electric and CLP Power (CLP). Both are regulated under the Scheme of Control (SOC). The SOC is a formal, long-term regulatory contract of 15 years, signed between a private firm and the Hong Kong Government. Under the SOC, the two electric utilities are subject to both rate-of-return control and price control. The current scheme will expire by 2008. In this paper, we propose a gradual and cautious approach to the introduction of market reform into the electricity industry in Hong Kong. For regulated markets, the government should consider replacing the SOC with performance-based regulation for wire businesses and the non-contestable market. For competitive markets, the government should consider introducing competitive tendering for new sources in the generation market and liberalising the supply market in phases. (author)

Hong Kong's electricity market beyond 2008

International Nuclear Information System (INIS)

Lam, P.-L.

2004-01-01

In Hong Kong, electricity is supplied by two private utilities: Hongkong Electric and CLP Power (CLP). Both are regulated under the Scheme of Control (SOC). The SOC is a formal, long-term regulatory contract of 15 years, signed between a private firm and the Hong Kong Government. Under the SOC, the two electric utilities are subject to both rate-of-return control and price control. The current scheme will expire by 2008. In this paper, we propose a gradual and cautious approach to the introduction of market reform into the electricity industry in Hong Kong. For regulated markets, the government should consider replacing the SOC with performance-based regulation for wire businesses and the non-contestable market. For competitive markets, the government should consider introducing competitive tendering for new sources in the generation market and liberalising the supply market in phases

Integrating gas and electric markets and regulation

International Nuclear Information System (INIS)

Whitmore, C.S.

1998-01-01

The issues determining what energy companies must do to compete in an increasingly competitive energy market and what regulators must do to ensure fairness in competition were discussed. The similarities of gas and electric markets, and the factors driving their integration were highlighted. The importance of communications and customer service in the energy market and the nature of market power in the gas and electric industries was described. Three reasons were given why gas/electric mergers will be beneficial: (1) operating efficiency, (2) applying gas experience to electric markets, and (3) opportunity to exercise market power. Potential regulatory problems were also reviewed

Electricity and gas market observatory. 2. Quarter 2007

International Nuclear Information System (INIS)

2007-01-01

The purpose of the observatory is to provide the general public with indicators for monitoring market deregulation. It both covers the wholesale and retail electricity and gas markets in Metropolitan France. This observatory is updated every three months and data are available on CRE web site (www.cre.fr). The present observatory is dedicated only to eligible customers before 1 July 2007, i.e. non-residential customers. Statistics related to residential customers will be published in the next observatory (1 December 2007). Content: A - The electricity market: The retail electricity market (Introduction, Non-residential customer segments and their respective weights, Status at July 1, 2007, Dynamic analysis: 2. Quarter 2007); The wholesale electricity market (Introduction, Wholesale market activity in France, Wholesale market activity in France, Prices on the French wholesale market and European comparison, Import and export volumes, Concentration of the French electricity market, Striking fact of the second quarter 2007); B - The gas market: The retail gas market (Introduction, The non-residential customer segments and their respective weights, Status at July 1, 2007); The wholesale gas market (Gas pricing and gas markets in Europe, The wholesale market in France); C - Appendices: Electricity and gas market observatories combined glossary, Specific electricity market observatory glossary, Specific gas market observatory glossary

Optimal Charging of Electric Vehicles with Trading on the Intraday Electricity Market

Directory of Open Access Journals (Sweden)

Ilham Naharudinsyah

2018-06-01

Full Text Available Trading on the energy market is a possible way to reduce the electricity costs of charging electric vehicles at public charging stations. In many European countries, it is possible to trade electricity until shortly before the period of delivery on so called intraday electricity markets. In the present work, the potential for reducing the electricity costs by trading on the intraday market is investigated using the example of the German market. Based on simulations, the authors reveal that by optimizing the charging schedule together with the trading on the intraday electricity market, the costs can be reduced by around 8% compared to purchasing all the required energy from the energy supplier. By allowing the charging station operator to resell the energy to the intraday electricity market, an additional cost reduction of around 1% can be achieved. Besides the potential cost savings, the impacts of the trading unit and of the lead time of the intraday electricity market on the costs are investigated. The authors reveal that the achievable electricity costs can be strongly affected by the lead time, while the trading unit has only a minor effect on the costs.

Power generation investment in electricity markets

International Nuclear Information System (INIS)

2003-01-01

Most IEA countries are liberalizing their electricity markets, shifting the responsibility for financing new investment in power generation to private investors. No longer able to automatically pass on costs to consumers, and with future prices of electricity uncertain, investors face a much riskier environment for investment in electricity infrastructure. This report looks at how investors have responded to the need to internalize investment risk in power generation. While capital and total costs remain the parameters shaping investment choices, the value of technologies which can be installed quickly and operated flexibly is increasingly appreciated. Investors are also managing risk by greater use of contracting, by acquiring retail businesses, and through mergers with natural gas suppliers. While liberalization was supposed to limit government intervention in the electricity market, volatile electricity prices have put pressure on governments to intervene and limit such prices. This study looks at several cases of volatile prices in IEA countries' electricity markets, and finds that while market prices can be a sufficient incentive for new investment in peak capacity, government intervention into the market to limit prices may undermine such investment

The Renewables Influence on Market Splitting: the Iberian Spot Electricity Market

OpenAIRE

Nuno Carvalho Figueiredo; Patrícia Pereira da Silva; Pedro Cerqueira

2014-01-01

This paper aims to assess the influence of wind power generation on the market splitting behaviour of the Iberian electricity spot markets. We use logit models to express the probability response for market splitting of day-ahead spot electricity prices together with explanatory variables like, wind speed, available transmission capacity and electricity demand. The results show that the probability of market splitting increases with the increase of wind power generation. The European intercon...

The economics of electricity markets

CERN Document Server

Biggar, Darryl R

2014-01-01

With the transition to liberalized electricity markets in many countries, the shift to more environmentally sustainable forms of power generation and increasing penetration of electric vehicles and smart appliances, a fundamental understanding of the economic principles underpinning the electricity industry is vital. Using clarity and precision, the authors successfully explain economic theory of all liberalized electricity market types from a cross-disciplinary engineering and policy perspective. No prior engineering knowledge or economics expertise is assumed in introducing key ideas such as nodal pricing, optimal dispatch and efficient pricing or in extending those models to areas including investment, risk management and the handling of contingencies. Key features: Comprehensively covers the principles of all liberalized electricity market types, including the US, Europe, New Zealand and Australia. Provides up to date coverage of research and policy iss es, including design of financial transmission rig...

Strategy of investment in electricity sources--Market value of a power plant and the electricity market

Science.gov (United States)

Bartnik, R.; Hnydiuk-Stefan, A.; Buryn, Z.

2017-11-01

This paper reports the results of the investment strategy analysis in different electricity sources. New methodology and theory of calculating the market value of the power plant and value of the electricity market supplied by it are presented. The financial gain forms the most important criteria in the assessment of an investment by an investor. An investment strategy has to involve a careful analysis of each considered project in order that the right decision and selection will be made while various components of the projects will be considered. The latter primarily includes the aspects of risk and uncertainty. Profitability of an investment in the electricity sources (as well as others) is offered by the measures applicable for the assessment of the economic effectiveness of an investment based on calculations e.g. power plant market value and the value of the electricity that is supplied by a power plant. The values of such measures decide on an investment strategy in the energy sources. This paper contains analysis of exemplary calculations results of power plant market value and the electricity market value supplied by it.

Ten Perspectives on Nordic Energy. Final report for the first phase of the Nordic Energy Perspectives project

International Nuclear Information System (INIS)

Ryden, Bo

2006-09-01

Nordic Energy Perspectives is an interdisciplinary energy research project which, from a holistic perspective, analyses and creates new insights into the consequences for energy markets and energy systems of the goals and instruments of energy policy in the light of new conditions. The project's aim is to provide better bases for decisions on energy and environmental policy at both national and international levels. It is intended to contribute to constructive dialogue between researchers, politicians, authorities and actors on the energy markets. A first phase of the project has been carried out during Apr 2005 - Sep 2006. This report summarises the most important results. Around fifteen current research issues have been analysed. Some of these issues have been analysed in detail, while others have been studied more generally. This means that we can present a comprehensive flora of results in a number of areas, whereas in regard to other questions the analysis is less deep and the conclusions are not as firmly grounded. We have nonetheless chosen to present the entire range of results in this final report. An objective of Nordic Energy Perspectives has been to create a forum for fact-based discussion and dialogue between decision-makers and other energy actors from different disciplines and different countries. Today this forum is fully active. We are very eager that the forum should survive and that the discussion should continue concerning the themes treated by Nordic Energy Perspectives. Hence, for each of the chapters 1-17 below, we identify the researchers whom the reader can contact for further dialogue. The ten perspectives, which are based on contributions from the whole research group, have the following headlines: Costly early learnings from the first year of EU ETS: Unforeseen price levels hit industries hard; Market based support schemes - do they really work as intended; New decade in the Nordic energy markets; Reduced CO 2 emissions and more

The restructuring of the Ontario electricity market

International Nuclear Information System (INIS)

Doucet, J.A.

1999-01-01

A summary of the current status of the deregulation of the electricity market in Ontario was presented. To follow global deregulation trends, the Ontario Government has embarked on a considerable restructuring of the Ontario electricity market. The monopoly position of Ontario Hydro has been removed by restructuring the provincial utility into two separate companies, GENCO and SERVCO, which will be responsible for the generation and transmission and distribution of electricity, respectively. Other mechanisms put in place to favour a free and competitive market for electricity in the province, such as the arrival on the market of other electricity producers, and the establishment of the independent market operator, are also discussed. 2 tabs

Market power and storage in electricity markets

International Nuclear Information System (INIS)

Skaar, Jostein

2004-05-01

Market power in liberalised electricity markets dominated by hydropower is analyzed in four chapters. The existing literature on competition in hydropower markets is briefly presented and examined. Chapter 1 discusses the effects of market power in the context of acquisitions in a situation where transmission capacity is constrained. Chapter 2 and 3 elaborate on the issue of competition and market power when water inflow is uncertain, and finally Chapter 4 focuses on the supply function equilibrium model in the context of a hydropower market

Assessing the efficiency of US electricity markets

International Nuclear Information System (INIS)

Arciniegas, I.; Barrett, C.; Marathe, A.

2003-01-01

The recent California's energy crisis has raised doubts about the benefits of energy deregulation. While it is true that the California electricity market is in turmoil, other electricity markets like the Pennsylvania-NewJersey-Maryland (PJM) are doing fine. This paper assesses the mark of efficiency reached by the electricity markets in California, New York, and PJM. It also compares the degree of efficiency across markets (forward vs. real time) and across time. No significant differences between the California and PJM electricity markets were discovered in the year of California's energy crisis (2000) using the co-integration tests. This research suggests that differences in price behavior between these two markets during 2000 did not arise from differences in efficiency. According to our analysis and measures of efficiency, PJM and California electricity markets are more efficient than the New York market. Also, as these markets become more mature over time, their efficiency level goes up. We also found evidence that a multi-settlement scheduling system leads to higher efficiency. (author)

Bilateral contracts and the spot market for electricity: some observations on the British and the NordPool experiences

International Nuclear Information System (INIS)

Herguera, Inigo

2000-01-01

The performance of the futures and the spot market for electricity in England and Wales (EW) and in the Nordic countries have significant differences in terms of volumes traded and evolution of prices. Even though the institutional arrangements show significant differences and the data collected has important limitations we observe in EW for 1990-199 that as the coverage via bilateral contracts diminished, spot prices tended to increase, there was higher price volatility and an increasing number of plants were declared unavailable. In the NordPool, by contrast, market structure is more distributed, the bilateral contract price has tended to smooth the volatility in the spot price and a very diverse pattern behavior of prices has been observed. We interpret these observations as additional support in favor of the theoretical result by and Vila (Journal of Economic Theory 59 (1993) 1), but hint at the possibility of strategies by the firms that can diminish the welfare enhancing properties of this new bilateral market. (Author)

Market Prices in a Power Market with more than 50% Wind Power

DEFF Research Database (Denmark)

Skytte, Klaus; Grohnheit, Poul Erik

2018-01-01

Denmark has the highest proportion of wind power in the world. Wind power provided a world record of 39.1% of the total annual Danish electricity consumption in 2014 with as much as 51.7% in Western Denmark. Many would argue that the present power markets are not designed for such high shares...... of wind power production and that it would be hard to get good and stable prices. However, analyses in this chapter show that the Nordic power market works, extreme events have been few, and the current infrastructure and market organization has been able to handle the amount of wind power installed so...... far. It is found that geographical bidding areas for the wholesale electricity market reflect external transmission constraints caused by wind power. The analyses in this chapter use hourly data from West Denmark—which has the highest share of wind energy in Denmark and which is a separate price area...

Market Prices in a Power Market with more than 50% Wind Power

DEFF Research Database (Denmark)

Skytte, Klaus; Grohnheit, Poul Erik

2017-01-01

Denmark has the highest proportion of wind power in the world. Wind power provided a world record of 39.1% of the total annual Danish electricity consumption in 2014 with as much as 51.7% in Western Denmark. Many would argue that the present power markets are not designed for such high shares...... of wind power production and that it would be hard to get good and stable prices. However, analyses in this chapter show that the Nordic power market works, extreme events have been few, and the current infrastructure and market organization has been able to handle the amount of wind power installed so...... far. It is found that geographical bidding areas for the wholesale electricity market reflect external transmission constraints caused by wind power. The analyses in this chapter use hourly data from West Denmark—which has the highest share of wind energy in Denmark and which is a separate price area...

New Brunswick electricity market rules : summary

International Nuclear Information System (INIS)

2004-02-01

The electricity market rules for New Brunswick were reviewed with particular reference to two broad classifications. The first classification is based on the roles and responsibilities of the system operator (SO) in facilitating the Bilateral Contract market, as well as the role of market participants in participating in the Bilateral Contract market. The second classification is based on the roles and responsibilities of each of the SO, market participants and transmitters in maintaining the reliability of the integrated electricity system and ensuring a secure supply of electricity for consumers in New Brunswick. The market rules consist of 10 chapters entitled: (1) introduction to the market rules and administrative rules of general application, (2) market participation and the use of the SO-controlled grid, (3) market administration, (4) technical and connection requirements, testing and commissioning, (5) system reliability, (6) operational requirements, (7) settlement, (8) connection of new or modified facilities, (9) transmission system planning, investment and operation, and (10) definitions and interpretation

Competition policies on the electricity markets

International Nuclear Information System (INIS)

Dubois, U.

2008-01-01

This article puts forward a critical analysis of European competition instruments and practices in terms of market power on the electricity wholesale markets. Due to the speck nature of electrical activities, competition policies come up against difficulties of market power identification at first, since there is no model for detecting perfectly the potential or real exertion of market power in this sector. What is more, since competition authorities rely on specific intervention methods, their ability to limit the exertion of market power is relatively low. For a large number of their interventions involves controlling concentrations. In the light of this double phenomenon, this article discusses some recent developments of European competition policies on the electricity wholesale markets. The sector inquiry of 2007 seems to mark the start of a new competition policy practice in the electricity sector. The initiative and decision-making power now seem to be nesting mainly at a European level where action is not only to be found in terms of controlling mergers and acquisitions, but also stretches to involve an in-depth evaluation of the way the different markets work. This action is manifested in decisions to investigate some companies as well as legislative proposals in the framework of the third package. Thus we are moving towards a greater monitoring of electricity markets using more formal supervision instruments and on a more continuous basis. (author)

Electricity pricing and load dispatching in deregulated electricity market

International Nuclear Information System (INIS)

Geerli; Niioka, S.; Yokoyama, R.

2003-01-01

A rapid move to a market-based electric power industry will significantly alter the structure of electricity pricing and system operation. In this paper, we consider a game of negotiation in the electricity market, involving electric utilities, independent power producers (IPPs) and large-scale customers. We analyze the two-level game strategies for the negotiation process between utilities, IPPs and customers. These have been previously recognized as a way to come up with a rational decision for competitive markets, in which players intend to maximize their own profits. The derived operation rules based on competition can be viewed as an extension of the conventional equal incremental cost method for the deregulated power system. The proposed approach was applied to several systems to verify its effectiveness. (Author)

Balancing renewable on intra day electricity markets

International Nuclear Information System (INIS)

Sokol, R.; Bems, J.

2012-01-01

Intra day electricity markets contribute to facilitate transition from conventional sources to renewable which need to be balanced on real-time basic due to the unpredictable nature of weather. This paper describes the way from regional electricity markets to a single pan-european market model which is target model of the European Commission. Single liquid intra day electricity market where market participants can balance their portfolios is prerequisite to a full utilisation of renewable power sources and a solution for some problems experienced by TSOs with loop and parallel flows from neighbouring countries. Integrated German and French intra day electricity market which uses Flexible Intra day Trading Scheme is described in this paper as a market which could be extended further to the CEE region with very poor liquidity of its local intra day markets. (Authors)

Development needs of the electricity market. Final report by the working group on the five-year revision of the electricity market act

International Nuclear Information System (INIS)

2001-01-01

The opening of the Finnish electricity market was started by the Electricity Market Act that entered into force in 1995. The Act abolished the obstructions to competition in electricity production, foreign trade and sales. To guarantee the functioning of the electricity market in practice, the electricity network operators were obliged to gradually open up their networks for the use of other parties operating on the market. Finland has liberated her electricity market in the forefront and ahead of the prescribed time in relation to the obligations laid down in the EC Directive concerning common rules for the internal market in electricity. The working group has studied the development needs of the electricity market in the light of experience gained during the validity of the Electricity Market Act. As a general conclusion, the working group states that the Finnish electricity market is functioning in an appropriate manner and that there is no reason to essentially change the model chosen for the opening of the electricity market. The working group makes several proposals for actions and recommendations for improving the efficiency of the electricity market. According to the view of the working group, electricity users, production plants and distribution network operators should be authorised to construct a 110-440 kV connection line of their own to a 110 kV network or grid. Following the working group's proposal, the regulation concerning electricity retailers would be extended over to electricity vendors operating as retailers in a real-estate network. To guarantee the functioning of competition on the small-scale consumers' electricity market, the working group suggests that the customers would be entitled during one year to one change of vendor for which no separate fee would be collected. The working group proposes that construction authorisation conditions pertaining to border lines should be specified so that one condition for granting an authorisation would

The Swedish Energy Market 2005

Energy Technology Data Exchange (ETDEWEB)

NONE

2005-10-01

The Swedish Energy Market, 2005 is an annual publication that presents information and statistics on the network based energy markets in Sweden, i.e. the markets for electricity, natural gas and district heating. It also provides an overview of the issues that have arisen on these markets during the second half of 2004 and the first half of 2005. Considerable work is being carried out in the EU on creating a single market for electricity and natural gas. This publication therefore describes expansion of the Swedish market towards a Nordic and a European market. The publication normally includes a theme chapter, describing some event of particular interest for the Swedish energy market during the year. This year, the theme chapter is devoted to the Storm Gudrun, which struck the south of the country at the beginning of January, and its effects on electricity supply throughout the country. The chapter is based on the report submitted to the Government by the Energy Markets Inspectorate in the spring of 2005, and also includes a summary of the Inspectorate's proposals for measures to improve the security of electricity transmission. Energy in Sweden, which is another of the Swedish Energy Agency's annual publications, provides information and statistics on the development of the entire Swedish energy system.

Electricity marketing and retailing

International Nuclear Information System (INIS)

Hanlon, C.

2001-01-01

ECNG Inc. is a full service provider of independent and objective energy advice and management services to industrial, commercial and institutional end-users of all forms of energy. ECNG manages 10 per cent of the Ontario gas market and expects a 10 per cent share of electricity (14 TWh). ECNG has a balanced portfolio with expertise in both petroleum and electricity sectors. The company has also dealt extensively with retailers, marketers, wholesalers and suppliers on issues regarding deregulation

Policies and Initiatives for Carbon Neutrality in Nordic

DEFF Research Database (Denmark)

Wu, Qiuwei; Møller, Jakob Glarbo; Østergaard, Jacob

2013-01-01

Policies and initiatives promoting carbon neutrality in the Nordic heating and transport systems are presented. The focus within heating systems is the promotion of HPs (heat pumps) while the focus within transport systems is initiatives regarding EVs (electric vehicles). It is found...... for the future heating and transport systems with the ambition of realizing carbon neutrality...... that the conversion to HPs in the Nordic region relies on both private economic and national economic incentives. Initiatives toward carbon neutrality in the transport system are mostly concentrated on research, development and demonstration for deployment of a large number of EVs. All Nordic countries have plans...

Analysis of competition and market power in the wholesale electricity market in India

International Nuclear Information System (INIS)

Shukla, Umesh Kumar; Thampy, Ashok

2011-01-01

The electricity reforms were initiated in India with the objective of promoting competition in the electricity market. In order to promote competition, the Electricity Act 2003 was enacted and various policy initiatives were taken by the Government of India. Central Electricity Regulatory Commission (CERC) also facilitated competition through the regulatory framework of availability based tariff, Indian Electricity Grid Code, open access in inter-state transmission, inter-state trading and power exchanges. Despite these initiatives, electricity prices increased in the Wholesale Electricity Market in India (WEMI). This paper analyses the market structure and competitiveness in the WEMI. There are, of course, various potential reasons for the rise in the electricity price. This paper seeks to investigate, if market power was one of the reasons for increase in market prices. Concentration ratio, Herfindahl-Hirschman index, Supply Margin Assessment, and Residual Supply Index have been used to measure market power. This paper also uses the price-cost mark-up to examine, if exercise of market power led to higher margins. The analysis suggests that market power of firms may be part of the reason for the increase in electricity prices in WEMI. The study suggests various measures to increase competition in the WEMI.

Electricity market price volatility: The case of Ontario

International Nuclear Information System (INIS)

Zareipour, Hamidreza; Bhattacharya, Kankar; Canizares, Claudio A.

2007-01-01

Price volatility analysis has been reported in the literature for most competitive electricity markets around the world. However, no studies have been published yet that quantify price volatility in the Ontario electricity market, which is the focus of the present paper. In this paper, a comparative volatility analysis is conducted for the Ontario market and its neighboring electricity markets. Volatility indices are developed based on historical volatility and price velocity concepts, previously applied to other electricity market prices, and employed in the present work. The analysis is carried out in two scenarios: in the first scenario, the volatility indices are determined for the entire price time series. In the second scenario, the price time series are broken up into 24 time series for each of the 24 h and volatility indices are calculated for each specific hour separately. The volatility indices are also applied to the locational marginal prices of several pricing points in the New England, New York, and PJM electricity markets. The outcomes reveal that price volatility is significantly higher in Ontario than the three studied neighboring electricity markets. Furthermore, comparison of the results of this study with similar findings previously published for 15 other electricity markets demonstrates that the Ontario electricity market is one of the most volatile electricity markets world-wide. This high volatility is argued to be associated with the fact that Ontario is a single-settlement, real-time market

Determining market boundaries in the electricity sector

International Nuclear Information System (INIS)

Godde, Anne

2013-01-01

The purpose of the present study was to develop a method of determining market boundaries in preparation of identifying all the competitive forces which a company in the electricity sector must address and deciding on this basis whether it has a dominant position in the market. The study focused in particular on current developments in the German electricity sector, this being the only way to permit a demarcation that accurately reflects the true economic situation. First the question was addressed whether a determination of market boundaries is at all necessary for performing a competitive analysis and in what specific constellations they could play a role. Giving due consideration to the special features of the electricity sector the most preferable market demarcation methods were applied to individual areas of the electricity sector that are of competitive relevance. Efforts were directed at arriving at market boundaries most conducive to the goal of identifying those competitive forces which a company in the electricity sector must address. For this purpose a critical assessment was undertaken of established market demarcation practices in Europe and Germany in order to determine whether ''classical'' market demarcation methods could be applied or whether modifications were needed on account of special features of market structure. The author also describes and discusses alternatives to the established market demarcation methods. She also elucidates methods of determining the boundaries of markets that have emerged as a result of recent developments in the electricity sector, for example through the growth of electricity production from renewable resources, or which are still in the process of formation.

Empirical assessment of market power in the Alberta wholesale electricity market

International Nuclear Information System (INIS)

Qu, F.

2007-01-01

In the 1990s, many countries began to unbundle regulated electricity monopolies into generation, transmission, distribution and retail companies. Transmission and distribution services remained regulated, but generation and retail services were open for competition. Wholesale and retail electricity markets were created. This paper presented a newly developed competitiveness index specifically for the Alberta market through a simple and standard economic approach. The Alberta Electric Utilities Act came into effect in January 1996. This paper described how the Alberta wholesale electricity market works and demonstrated how to model market power in the electricity market. In this study, power generating companies in Alberta were divided into 2 groups. The first group contained the 5 largest firms called strategic firms, while the other group contained the small generating companies called non-strategic firms or the competitive fringe. In the sample years 2003 and 2004, strategic firms withheld capacity when price was above marginal cost and behaved within the range of competitive pricing. They were more likely to price competitively than to use unilateral market power prices. In addition, firms had higher price-cost margins during the off-peak season. This paper explained in detail the reason for this unusual off-peak pattern. The index to measure a firm's strategic behaviour in the Alberta electricity market was developed according to price-cost margin data where firm-behaviour effect was distinguished from the demand-elasticity effect. It was concluded that policy-makers and regulations should consider the magnitude and source of market power when designing market structure, rules and trading practices. 9 refs., 5 tabs., 2 figs

Per and polyfluorinated substances in the Nordic Countries

DEFF Research Database (Denmark)

Posner, Stefan; Roos, Sandra; Brunn Poulsen, Pia

This Tema Nord report presents a study based on open information and custom market research to review the most common perfluorinated substances (PFC) with less focus on PFOS and PFOA. The study includes three major parts: 1) Identification of relevant per-and polyfluorinated substances and their ......This Tema Nord report presents a study based on open information and custom market research to review the most common perfluorinated substances (PFC) with less focus on PFOS and PFOA. The study includes three major parts: 1) Identification of relevant per-and polyfluorinated substances...... and their use in various industrial sectors in the Nordic market by interviews with major players and database information 2) Emissions to and occurence in the Nordic environment of the substances described in 1) 3) A summary of knowledge of the toxic effects on humans and the environment of substances...

Electricity market design and risk management

International Nuclear Information System (INIS)

Boschi, Federico; Cervigni, Guido

2005-01-01

We show that each wholesale electricity market design trades-off between efficiency and liquidity. Efficiency requires that the product traded in the wholesale market closely reflect the physical features of electricity. Liquidity requires standardization of the products that ore traded on the wholesale market. We stress that Iiquidity comes at a cost since an excessive degree of standardization may lead to significant inefficiencies and forge wealth transfers among market participants [it

Electricity market design for the future

OpenAIRE

robinson, david; Keay, Malcolm

2017-01-01

This paper explains why current electricity markets are not fit for purpose and propose a new market design. Electricity markets operating today were designed for the technical and economic conditions of the 1990's. These conditions have changed substantially, especially with increased penetration of intermittent renewables and the growing potential for distributed energy resources and consumer involvement. Today's markets are incompatible with these trends. They do not provide h...

The labor market regimes of Denmark and Norway – One Nordic model?

DEFF Research Database (Denmark)

Gooderham, Paul; Navrbjerg, Steen Erik; Olsen, Karen M.

2014-01-01

The literature on the Danish and Norwegian labor market systems emphasizes the commonalities of the two systems. We challenge this perception by investigating how employers in multinational companies in Denmark and Norway communicate with employees on staffing changes. We argue that the development...... of ‘flexicurity’ in Denmark grants Danish employers considerably greater latitude in engaging in staffing changes than its Nordic counterpart, Norway. Institutional theory leads us to suppose that large firms located in the Danish setting will be less likely to engage in employer–employee communication...... than their foreign-owned counterparts. We supplement institutional theory with an actor perspective in order to take into account the role of labor unions. Our analysis is based on a survey of 203 firms in Norway and Denmark which are either indigenous multinational companies or the subsidiaries...

Modelling Danish local CHP on market conditions

DEFF Research Database (Denmark)

Ravn, Hans V.; Riisom, Jannik; Schaumburg-Müller, Camilla

2004-01-01

with the liberalisation process of the energy sectors of the EU countries, it is however anticipated that Danish local CHP are to begin operating on market conditions within the year 2005. This means that the income that the local CHPs previously gained from selling electricity at the feed-in tariff is replaced in part...... the consequences of acting in a liberalised market for a given CHP plant, based on the abovementioned bottom-up model. The key assumption determining the bottom line is the electricity spot price. The formation of the spot price in the Nordic area depends heavily upon the state of the water reservoirs in Norway...

Forecasting the Electricity Demand and Market Shares in Retail Electricity Market Based on System Dynamics and Markov Chain

OpenAIRE

Qingyou Yan; Chao Qin; Mingjian Nie; Le Yang

2018-01-01

Due to the deregulation of retail electricity market, consumers can choose retail electric suppliers freely, and market entities are facing fierce competition because of the increasing number of new entrants. Under these circumstances, forecasting the changes in all market entities, when market share stabilized, is important for suppliers making marketing decisions. In this paper, a market share forecasting model was established based on Markov chain, and a system dynamics model was construct...

Portfolio optimization in electricity markets

International Nuclear Information System (INIS)

Liu, Min; Wu, Felix F.

2007-01-01

In a competitive electricity market, Generation companies (Gencos) face price risk and delivery risk that affect their profitability. Risk management is an important and essential part in the Genco's decision making. In this paper, risk management through diversification is considered. The problem of energy allocation between spot markets and bilateral contracts is formulated as a general portfolio optimization problem with a risk-free asset and n risky assets. Historical data of the PJM electricity market are used to demonstrate the approach. (author)

E-laboratories : agent-based modeling of electricity markets

International Nuclear Information System (INIS)

North, M.; Conzelmann, G.; Koritarov, V.; Macal, C.; Thimmapuram, P.; Veselka, T.

2002-01-01

Electricity markets are complex adaptive systems that operate under a wide range of rules that span a variety of time scales. These rules are imposed both from above by society and below by physics. Many electricity markets are undergoing or are about to undergo a transition from centrally regulated systems to decentralized markets. Furthermore, several electricity markets have recently undergone this transition with extremely unsatisfactory results, most notably in California. These high stakes transitions require the introduction of largely untested regulatory structures. Suitable laboratories that can be used to test regulatory structures before they are applied to real systems are needed. Agent-based models can provide such electronic laboratories or ''e-laboratories.'' To better understand the requirements of an electricity market e-laboratory, a live electricity market simulation was created. This experience helped to shape the development of the Electricity Market Complex Adaptive Systems (EMCAS) model. To explore EMCAS' potential as an e-laboratory, several variations of the live simulation were created. These variations probed the possible effects of changing power plant outages and price setting rules on electricity market prices

Strong economic growth driving increased electricity consumption

International Nuclear Information System (INIS)

Tiusanen, P.

2000-01-01

The Finnish economy is growing faster today than anyone dared hope only a few years ago. Growth estimates for 2000 have already had to be raised. This strong level of economic growth has been reflected in electricity consumption, which has continued to increase, despite the exceptionally warm winter. A major part of this increased electricity usage has so far been met through imports. The continued growth in electricity imports has largely been a result of the fact that the good water level situation in Sweden and Norway, together with the mild winter, has kept electricity prices exceptionally low on the Nordic electricity exchange. The short period of low temperatures seen at the end of January showed, however, that this type of temperature fluctuation, combined with the restrictions that exist in regard to transfer capacity, can serve to push Nordic exchange electricity prices to record levels. This increase in price also highlights the fact that we are approaching a situation in which capacity will be insufficient to meet demand. A truly tough winter has not been seen since the Nordic region's electricity markets were deregulated. The lesson that needs to be learnt is that Finland needs sufficient capacity of her own to meet demand even during particularly cold winters. Finland used 77.9 billion kWh of electricity last year, up 1.6% or 1.3 billion kWh on 1998. This growth was relatively evenly distributed among different user groups. This year, electricity consumption is forecast to grow by 2-3%

Preparedness against power crises in the Nordic countries

International Nuclear Information System (INIS)

Abelsen, Atle

2004-01-01

In the so-called Akureyri declaration the Nordic energy ministers presented their requests and claims to the system operators about supply security and exchange capacity between the countries. Some special issues are grid strengthening, common principles for how to deal with export and import, and a common transmission system operator. The ministers want to make international lines a priority. A common, Nordic grid company is probably not of current interest. Of the transmission system operators, only Statnett (Norway) is ready to consider a supranational perspective. Although the Nordic energy market is the most well-functioning energy market in the world, the ministers are not entirely satisfied and want further improvement. The first step will be to work out organizational models for how the grid operation and system responsibility can be managed by the countries jointly and thus improve the preparedness. The major power customers fear that a power crisis in one country may cause a cascade outage to spread in the neighbouring countries without the authorities being prepared. Experts disagree about the likelihood of a power crisis the next years. However, consumption is increasing much faster than production. After the liberalization of the energy market in 1991, the investments in the physical power system have decreased dramatically

Towards a regional electricity market in Southeast Europe

International Nuclear Information System (INIS)

Ichord, R.F. Jr.

2002-01-01

Historical evolution of the region's electric power policy is overviewed. The regional characteristics of Southern Europe's electric power market are summarized. The reform indicators of the region's electricity markets are discussed. The status of privatization is presented. Factors in developing regional electricity market are considered. (R.P.)

Co-existence of electricity, TEP, and TGC markets in the Baltic Sea Region

International Nuclear Information System (INIS)

Hindsberger, Magnus; Nybroe, Malene Hein; Ravn, Hans F.; Schmidt, Rune

2003-01-01

This paper analyses the application of two policy instruments, tradable emission permits (TEPs) and tradable green certificates (TGCs) to the electricity sector in an international context. The paper contains an explicit modelling at two levels of abstraction, one suitable for defining and analysing basic functionalities and one suitable for numerical analysis in relation to countries in the Baltic Sea Region. Emphasis is on estimating implications in quantitative terms for countries in the Baltic Sea Region in 2010 when the TEP market in the analysis extends to four Nordic countries (Denmark, Finland, Norway, Sweden), and the TGC market extends to North European EU countries (Denmark, Finland, Sweden, Germany). The study concludes that within the range of goals stipulated in the EU draft directive (23.6% renewable energy) and the Kyoto targets for emissions, the following prices are affected significantly: from -2 to +10 Euro/MWh for electricity spot prices, TGC prices up to 50 Euro/MWh, TEP prices up to 18 Euro/t CO 2 and up to +15 Euro/MWh on the consumer cost. It is shown that such price changes have important consequences for the production and investment patterns in the electricity sector, and the resulting patterns will be clearly different according to the specific numerical targets for the two goals. An immediate consequence is increased pressure on transmission lines. Further, the introduction of TEP and TGC markets will imply a restructuring of the electricity sector, e.g. (depending on the specific combination of targets) by a significant increase in wind power capacities. However, this will have to be counterbalanced by access to production technologies that have fast regulation properties and/or that may maintain voltage stability. However, the price signals of TGCs (and to some extent also TEPs) that will enhance wind power investments will simultaneously hamper investments in technologies that are a precondition for extensive use of wind power

Electric glass capturing markets

Energy Technology Data Exchange (ETDEWEB)

Wikman, K.; Wikstroem, T.

1996-11-01

Electric glass has found its place on the construction market. In public buildings, electrically heatable windows are becoming the leading option for large glass walls. Studies on detached houses, both new and renovated, show that floor heating combined with electrically heatable windowpanes is the best choice with respect to resident`s comfort. (orig.)

Using Intelligent System Approaches for Simulation of Electricity Markets

Science.gov (United States)

Hamagami, Tomoki

Significances and approaches of applying intelligent systems to artificial electricity market is discussed. In recent years, with the moving into restructuring of electric system in Japan, the deregulation for the electric market is progressing. The most major change of the market is a founding of JEPX (Japan Electric Power eXchange.) which is expected to help lower power bills through effective use of surplus electricity. The electricity market designates exchange of electric power between electric power suppliers (supplier agents) themselves. In the market, the goal of each supplier agents is to maximize its revenue for the entire trading period, and shows complex behavior, which can model by a multiagent platform. Using the multiagent simulations which have been studied as “artificial market" helps to predict the spot prices, to plan investments, and to discuss the rules of market. Moreover, intelligent system approaches provide for constructing more reasonable policies of each agents. This article, first, makes a brief summary of the electricity market in Japan and the studies of artificial markets. Then, a survey of tipical studies of artificial electricity market is listed. Through these topics, the future vision is presented for the studies.

More for the money, but an impaired environment. The electricity sector in the Nordic countries from plan to realty

International Nuclear Information System (INIS)

Bowitz, Einar; Rosnes, Orvika; Vennemo, Haakon

2001-01-01

Ten years after the reformation of the power market in the Nordic countries was begun, this article asks: What was the result of the reform? By means of a numerical equilibrium model the article discusses weather the power reform gives money back for the money invested by society in this sector. The answer is yes, but the environment is loosing

A great potential for market power

International Nuclear Information System (INIS)

Trong, Maj Dang

2003-01-01

In a report the competition authorities of Norway, Sweden and Denmark conclude that there is a great potential for exerting market power in the Nordic countries. Bottlenecks in the transmission grid divide the Nordic market in shifting constellations of geographic markets and the market concentration in each market may therefore become very high

Electric power and gas markets

International Nuclear Information System (INIS)

2001-01-01

These two days organized by EFE in Paris, dealt with the european market of the gas and the electrical power. The first day developed the actual situation and the tendencies. The french market deregulation, the possibility of a united market and the energy transportation sector are discussed. The second day dealt with the new commercial technologies, the convergence of Gas and Electricity and the competing in a change world, the opportunities of the NTIC (new technologies of the information and communication). (A.L.B.)

The European green electricity markets in 2010

International Nuclear Information System (INIS)

Meibom, Peter; Skytte, Klaus

2003-01-01

The market shares of different electricity producing renewable energy technologies in the green electricity markets in EU, and the size and prices obtained on these markets depends strongly on the market designs and support policies governing the development of these markets. These issues have been analysed with the use of the ADMIRE REBUS model. Costs data for all significant electricity producing renewable energy technologies and data on the sizes of the renewable energy resources in the EU are combined with different national development of the support policies for green electricity in the different EU countries towards a common EU market in 2010. The model simulates the operation of each green electricity market in EU and the interaction between the markets. Model results show that in a harmonized EU wide tradable green certificate system starting from 2010, i.e. in a system without technology-specific support, wind power will be the most competitive technology, but power plants using different types of biomass will also gain a large share of the market. To reach the indicative EU targets for RES-E production in 2010 a TGC price of 5.6 eurocents is necessary in addition to a physical power price of 2.2 eurocents. (au)

Market Monitor, development of the wholesale trade market of electricity 2006. Results

International Nuclear Information System (INIS)

Vermeulen, M.; Mulder, M.; Van den Reek, W.; Thomeer, G.; De Kleijn, M.

2007-12-01

The Office of Energy Regulation carries out its legal task by means of a monitor, a practical tool to assess and analyze the wholesale market for electricity. Monitoring of the wholesale electricity market concerns continuous, accurate and structured following of developments in the market. The aim is to identify in time signals from the market that could lead to a decrease of competition and transparency. The starting point of the monitor for the wholesale electricity market is the selection of indicators which give insight in real competition, liquidity and transparency [nl

Benefits from increased cooperation and energy trade under CO2 commitments - the Nordic case

International Nuclear Information System (INIS)

Unger, T.; Ekvall, T.

2003-01-01

In this paper, benefits from increasing cross-border cooperation under future CO 2 commitments in the Nordic countries are examined and evaluated. Four cooperative strategies are analyzed and valued separately: cross-border electricity trade, cross-border emission-permit trade, the introduction of a trans-Nordic natural gas transmission grid, and, finally, utilization of all these three strategies simultaneously. The valuation is done under varying CO 2 commitments and under three different scenarios for future energy demand and technological development. In conducting this analysis, the energy-systems model-generator MARKAL (MARKet ALlocation) was used to model the Nordic energy system. It is shown that all cooperative strategies do lower the abatement costs considerably, especially if the strategy including full cooperation is utilized. In this case, additional costs from meeting CO 2 targets may be at least halved for commitments less than 10% reduction until 2050 based on emissions in 1995. No significant difference between low and high CO 2 commitments could be observed in the size of the benefits from cooperation, expressed in billions (10 9 ) of Swedish crowns. Benefits from cooperation are generally larger for scenarios including relatively higher future energy demand. (author)

Harmonising the balancing market Issues to be considered

Energy Technology Data Exchange (ETDEWEB)

2010-07-15

One of the work streams established in NordREG Work Programme for 2009 is related to the Nordic balancing power market and balance management. One of the tasks is to follow up the implementation of the common balance management according to what was described above, the other task is related to the efficient functioning of the Nordic balancing power market. While it has been noted that the Nordic wholesale market functions well, there is an expectation that further harmonization of the Nordic balancing power market would improve the efficiency of the market and form the basis for further integration with adjacent markets in the area of balancing services. Therefore NordREG has taken on to investigate in which areas further harmonization can be expected to be cost-efficient and contribute to a better functioning market and how this harmonized market could be monitored. The task according to the work programme is: 'In its initial work regarding Nordic balancing, NordREG noted that the common Nordic list for bids in regulation power works fairly well. However, there seems to be scope for increased efficiency. This might be attained by identifying important differences in the framework between countries as well as proposing a genuine Nordic harmonisation. It is important initially to discuss to what degree harmonisation is necessary in order to improve the efficient functioning of the market. 'In approaching these topics, NordREG has been discussing with the Nordic TSOs, where appropriate, and has made use of Nordel's publications on this topic. This report provides an overview of the current state of integration and harmonization of balancing in the Nordic region. The report also provides a summary of the harmonization measures that might be implemented in the future

Economic-efficiency considerations in restructuring electric markets

Energy Technology Data Exchange (ETDEWEB)

Hill, L.J.

1996-12-01

In response to the Energy Policy Act of 1992 and the Federal Energy Regulatory Commission`s subsequent rulemaking on transmission access, many states are exploring options to restructure their electric industries. In their deliberations on restructuring, policymakers should consider (1) the reliability of the electric system; (2) income-distribution effects on ratepayers and utilities; (3) social consequences such as effects on energy conservation, renewable energy, and the environment; and (4) economic efficiency. We address economic-efficiency considerations in this study. Economic efficiency is important because it is one of the primary reasons that policymakers should consider restructuring in the first place: improving the electric-industry`s efficiency lowers costs and, hence, electric prices. In this study, we look at the sources of (in)efficiency in existing and proposed electric markets with the objective of guiding policymakers to design efficient electric markets. The advantages of a competitive market are well known: it leads to lower costs for the utility, lower prices for consumers, more product choices, better customer service, and often the need for less regulation by federal and state agencies. In the short run, firms who cannot produce at the market-clearing price are forced to leave the industry, ensuring that customers have the lowest price possible. In the long run, competition promotes innovation and lower costs. The physical and institutional characteristics of the U.S. electric industry, however, could be impediments to attaining efficiently run, competitive markets. Because of these characteristics, there are multiple sources of efficiencies and inefficiencies in existing electric markets, and there will be multiple sources in restructured ones. The objective of policymakers should not be to trade one set of inefficiencies in existing electric markets for another set in restructured markets.

Economic-efficiency considerations in restructuring electric markets

International Nuclear Information System (INIS)

Hill, L.J.

1996-12-01

In response to the Energy Policy Act of 1992 and the Federal Energy Regulatory Commission's subsequent rulemaking on transmission access, many states are exploring options to restructure their electric industries. In their deliberations on restructuring, policymakers should consider (1) the reliability of the electric system; (2) income-distribution effects on ratepayers and utilities; (3) social consequences such as effects on energy conservation, renewable energy, and the environment; and (4) economic efficiency. We address economic-efficiency considerations in this study. Economic efficiency is important because it is one of the primary reasons that policymakers should consider restructuring in the first place: improving the electric-industry's efficiency lowers costs and, hence, electric prices. In this study, we look at the sources of (in)efficiency in existing and proposed electric markets with the objective of guiding policymakers to design efficient electric markets. The advantages of a competitive market are well known: it leads to lower costs for the utility, lower prices for consumers, more product choices, better customer service, and often the need for less regulation by federal and state agencies. In the short run, firms who cannot produce at the market-clearing price are forced to leave the industry, ensuring that customers have the lowest price possible. In the long run, competition promotes innovation and lower costs. The physical and institutional characteristics of the U.S. electric industry, however, could be impediments to attaining efficiently run, competitive markets. Because of these characteristics, there are multiple sources of efficiencies and inefficiencies in existing electric markets, and there will be multiple sources in restructured ones. The objective of policymakers should not be to trade one set of inefficiencies in existing electric markets for another set in restructured markets

ELMO model predicts the price of electric power

International Nuclear Information System (INIS)

Antila, H.

2001-01-01

Electrowatt-Ekono has developed a new model, by which it is possible to make long-term prognoses on the development of electricity prices in the Nordic Countries. The ELMO model can be used as an analysis service of the electricity markets and estimation of the profitability of long-term power distribution contracts with different scenarios. It can also be applied for calculation of technical and economical fundamentals for new power plants, and for estimation of the effects of different taxation models on the emissions of power generation. The model describes the whole power generation system, the power and heat consumption and transmission. The Finnish power generation system is based on the Electrowatt-Ekono's boiler database by combining different data elements. Calculation is based on the assumption that the Nordic power generation system is used optimally, and that the production costs are minimised. In practise the effectively operated electricity markets ensure the optimal use of the production system. The market area to be described consists of Finland and Sweden. The spot prices have long been the same. Norway has been treated as a separate market area. The most potential power generation system, the power consumption and the power transmission system are presumed for the target year during a normal rainfall situation. The basic scenario is calculated on the basis of the preconditional data. The calculation is carried out on hourly basis, which enables the estimation of the price variation of electric power between different times during the day and seasons. The system optimises the power generation on the basis of electricity and heat consumption curves and fuel prices. The result is an hourly limit price for electric power. Estimates are presented as standard form reports. Prices are presented as average annuals, in the seasonal base, and in hourly or daily basis for different seasons

Electricity costs in liberalized market

International Nuclear Information System (INIS)

Barkans, J.; Junghans, G.

2006-01-01

In the liberalized electricity market the flexible demand determines the operation of power plants. Under market conditions the producers are forced to compete, and their power plants are normally loaded in order of increasing prices. The electricity costs consist of fixed and variable components, and the competition among producers simulates minimization of both the components. Considering the fixed costs (including maintenance, depreciation, capital costs and other permanent costs not depending on production) to be known, the total electricity costs in different operating conditions are based on the economic characteristics and the equipment load of a power plant. The paper describes the method for determination of electricity costs for condensing thermal power plants with permanent steam take-off for regeneration purposes and adjustable steam take-off for the needs of local heat energy consumers. The marginal costs for CHP plants are determined considering a number of different steam take-off from a turbine. At the electricity cost determination, auxiliary services also are taken into account. These can be reduced by adjusting the rotational speed of electric motors. The paper also shows how to determine the electricity costs for gas turbines, combined cycle gas turbines, and nuclear power plants. The position of hydro power plants among other PPs in the free market is also analysed. (authors)

An open data repository and a data processing software toolset of an equivalent Nordic grid model matched to historical electricity market data

Directory of Open Access Journals (Sweden)

Luigi Vanfretti

2017-04-01

This Nordic 44 equivalent model was also used in iTesla project (iTesla [3] to carry out simulations within a dynamic security assessment toolset (iTesla, 2016 [4], and has been further enhanced during the ITEA3 OpenCPS project (iTEA3 [5]. The raw, processed data and output models utilized within the iTesla platform (iTesla, 2016 [4] are also available in the repository. The CIM and Modelica snapshots of the “Nordic 44” model for the year 2015 are available in a Zenodo repository.

System analysis and assessment of technological alternatives for Nordic H{sub 2} energy foresight

Energy Technology Data Exchange (ETDEWEB)

Koljonen, T.; Pursiheimo, E. [VTT, Espoo (Finland); Gether, K. [NTNU, Trondheim (Norway); Joergensen, K. [Risoe National Lab. (Denmark)

2004-12-01

The hydrogen scenarios developed during the Nordic Hydrogen Foresight project was analysed using a energy system model, which was developed during the project. The aim of the systems analysis was to analyse the technical and economical potential of hydrogen society in the Nordic countries in quantitative terms as well as the competitiveness of the selected hydrogen based systems. Visions and scenarios of the future energy systems in the Nordic area were defined in the workshops of the project. As a result of these workshops three scenarios were selected to outline the future of Nordic energy. The scenarios included different energy policies; scenarios for fossil fuel prices; and hydrogen energy demands, which varied from 6% to 18% of the total energy demand in 2030 for transport sector, and from 3% to 9% in heat and power production. In the roadmap workshops, the most important hydrogen based systems were selected, which were also included in the model. These include steam reforming of natural gas, electrolysis with renewable electricity, and biomass gasification for hydrogen production. For stationary applications, fuel cells and gas engines were selected for power and heat production. In our scenario calculations, biomass gasification and steam reforming seem to be the most competitive technologies for hydrogen production. The competitiveness of biomass gasification is greatly affected by the biomass fuel price, which is a local energy source. Electrolysis seems to be most competitive in decentralized systems, if the electricity price is low enough. For stationary applications, CHP fuel cells seem to be the most competitive in the long term, if the technological development and the decrease in investment costs follow the assumed scenario. The approximated Nordic market sizes in 2030 for the base scenarios varied from 1000 ME to 3000 MEuro for hydrogen production, from 1000 to 4000 MEuro for stationary applications and 4000 MEuro to 12.000 MEuro for hydrogen

Demand Response Within Current Electricity Wholesale Market Design

OpenAIRE

Ramos Gutierrez, Ariana Isabel; De Jonghe, Cedric; Six, Daan; Belmans, Ronnie

2013-01-01

The introduction of intermittent energy resources calls for the ability to modulate consumption patterns according to electricity availability. This paper provides a brief overview of the main electricity market design characteristics and places demand response within the framework of the existing timeline of market operation. The main differences between electricity markets lie in the price formation mechanisms where some markets pay-as- cleared and some pay- as- bid for the electricity tran...

Integrating Renewables in Electricity Markets

DEFF Research Database (Denmark)

Morales González, Juan Miguel; Conejo, Antonio J.; Madsen, Henrik

in the electricity market. • The development of procedures to enable demand response and to facilitate the integration of stochastic renewable units. This book is written in a modular and tutorial manner and includes many illustrative examples to facilitate its comprehension. It is intended for advanced...... such as: • The modeling and forecasting of stochastic renewable power production. • The characterization of the impact of renewable production on market outcomes. • The clearing of electricity markets with high penetration of stochastic renewable units. • The development of mechanisms to counteract...

Market study on the Mexican market for electrical distribution equipment

International Nuclear Information System (INIS)

1991-01-01

A brief historical survey of the development of the Mexican electric power sector is presented, along with an overview of the state of the Mexican economy since the late 1980s and the present characteristics of the Mexican electricity sector. The Mexican market for electric power generation and distribution equipment is then assessed, from the perspective of Canadian suppliers and manufacturers intending to enter this market. Projected consumption of electrical generation and distribution equipment in Mexico for 1994 is estimated at US$1,035,600,000 ($719.4 million in production, $356.9 million in imports, and $40.7 million in exports). This market increased 12.3% in 1990, and since power demand in Mexico has been growing faster than growth in capacity, it is possible that investments in the electricity sector will grow at faster rates. Items which are traditionally imported include nuclear reactors and related equipment, boilers, turbines, power breakers, valves, coal and ash handling equipment, relays, automatic controls, and chemical treatment equipment. The USA has the greatest share of the import market with 35%, followed by Japan (22%), Switzerland (18%), and Germany (13%). Canadian exports have concentrated on distribution equipment and only totalled $1.7 million in 1990. Electricity is distributed to some 16.6 million users over a national interconnected system having total installed capacity of 30,513 MW in 1991. There are plans to increase capacity by 9.7 GW by 1994 and another 37.4-47.8 GW between 1995 and 2010. Projections of electricity needs by region are listed along with the new power plants targeted for investment. Market liberalization and lowering of tariffs have made the Mexican market more accessible to exporters. 8 tabs

Electricity market design of the future

International Nuclear Information System (INIS)

Peek, Markus; Diels, Robert

2016-01-01

The transformation of the power generation system, to one in which renewable energies will form a cornerstone, will change the requirements for all market actors. To achieve the goals of the German Energiewende ('energy transition'), greater flexibility in production and consumption is of particular importance. Flexibility enables the cost-effective integration of the fluctuating actual feed-in of renewable energies. On the one hand, the technical options for reducing existing technical inflexibilities are given to a considerable extent. On the other hand, analyses of the transnational compensation effects of load and renewable energy supply (RES) feed-in show that flexibility requirements can be reduced significantly in a common electricity market. Electricity markets in which there is open technological competition are an appropriate instrument for the flexibilization of the power supply system. In the short term, the mechanisms of competitive electricity markets ensure an efficient synchronization of supply and demand. Over the medium and long term, the market creates efficient incentives to adapt the generation system and the behavior of consumers to future needs, resulting from the changes in the residual load structure. But at the same time, in recent years the occurrence of negative electricity prices in situations with significantly positive residual loads show that flexibility restraints exist. The causes of these restraints are at least partly due to the market design or the regulatory framework. On the one hand, there are barriers to market entry and, on the other hand, price signals from the electricity markets do not reach all market actors or reach them distortedly. To enable the cost effective development of the different flexibility options in an open technology competition, restraints resulting from market design and the regulatory framework (e. g. in the framework of grid charges, the market and product design of control power markets

Engineering Electricity Markets for a Decarbonized Energy System

DEFF Research Database (Denmark)

Jenle, Rasmus Ploug; Pallesen, Trine

Decarbonization of the Danish electricity sector has recently been sought achieved through the introduction of a novel retail electricity market, named EcoGrid, designed to create price responsive consumers. By following the market design process undertaken by engineers at the Technical Universit...... of introducing synthetic markets as means of governance.......Decarbonization of the Danish electricity sector has recently been sought achieved through the introduction of a novel retail electricity market, named EcoGrid, designed to create price responsive consumers. By following the market design process undertaken by engineers at the Technical University...... of Denmark, the analysis addresses the question: how do engineers make markets? The answer to this question as presented here is: engineers design control systems. By tracing the origins of EcoGrid, this paper documents the governing of electricity consumers through a ‘synthetic market’, i.e. a market...

Overview of Wholesale Electricity Markets

Energy Technology Data Exchange (ETDEWEB)

Milligan, Michael [National Renewable Energy Laboratory (NREL), Golden, CO (United States); Bloom, Aaron P [National Renewable Energy Laboratory (NREL), Golden, CO (United States); Cochran, Jaquelin M [National Renewable Energy Laboratory (NREL), Golden, CO (United States); Townsend, Aaron [National Renewable Energy Laboratory (NREL), Golden, CO (United States); Ela, Erik [Electric Power Research Institute; Botterud, Audun [Argonne National Laboratory; Levin, Todd [Argonne National Laboratory

2018-02-15

This chapter provides a comprehensive review of four key electricity markets: energy markets (day-ahead and real-time markets); ancillary service markets; financial transmission rights markets; capacity markets. It also discusses how the outcomes of each of these markets may be impacted by the introduction of high penetrations of variable generation. Furthermore, the chapter examines considerations needed to ensure that wholesale market designs are inclusive of emerging technologies, such as demand response, distributed generation, and distributed storage.