Electricity storage and market power

Electricity storage is likely to be an important factor in balancing fluctuations renewable generators' output, but concentrated ownership could lead market power. We model this for short-term (daily) the British electricity wholesale market, with generating companies acting as either price-takers or Cournot competitors. discuss how competitive charging and discharging behaviour depends on balance between price shadow of stored electricity. raises welfare, consumer surplus generators’ revenues, while reducing revenues conventional generators. Market power slightly reduces welfare gains; by generators has relatively little impact incremental effect storage. undesirable, generation much worse. The interactions are complex, suggesting that predictions from one may not apply elsewhere context-specific modelling will valuable.