The creation of electricity markets has raised the fundamental question as to whether markets provide the right incentives for the provision of the reserves needed to maintain system reliability, or whether some form of regulation is needed. In some states in the US, electricity retailers have been made responsible for providing such reserves by contracting capacity in excess of their forecaste...

Since the early 1990s, an increasing number of countries worldwide have liberalized their electricity power sectors. Contrary to before, when power sectors were not open to competition and prices were set by regulators according to the cost of generation, transmission and distribution, electricity prices are now determined by an equilibrium of supply and demand. On one hand, electricity contrac...

Transport constraints limit competition and arbitrageurs’possibilities of exploiting price differences between goods in neighbouring markets, especially when storage capacity is negligible. We analyse this in markets where strategic producers compete with supply functions, as in wholesale electricity markets. For networks with a radial structure, we show that existence of supply function equili...

As a consequence of an increasing share of renewable energies, balancing electricity production and delivery requires efficient electricity markets. At the heart of electricity markets are Information Systems (IS) that coordinate demand and supply in real-time. IS has recently opened up an alternative towards increasing the efficiency of electricity markets by managing demand side resources; i....

S tarting in June 2000, California’s wholesale electricity prices increased to unprecedented levels. The June 2000 average of $143 per megawatt-hour (MWh) was more than twice as high as in any previous month since the market opened in April 1998. These high prices produced enormous proŽ ts for generating companies and Žnancial crises for the regulated utilities that were required to buy power i...

accurate and effective electricity price forecasting is critical to market participants in order to make an appropriate risk management in competitive electricity markets. market participants rely on price forecasts to decide on their bidding strategies, allocate assets and plan facility investments. however, due to its time variant behavior and non-linear and non-stationary nature, electricity...

a r t i c l e i n f o Keywords: Electricity market integration in Europe Market coupling Time-varying price convergence Fractional cointegration This study extends existing literature on the assessment of electricity market integration in Europe, by developing and testing hypotheses on the convergence of electricity wholesale prices, and adopting a time-varying fractional cointegration analysis...

Prior to the deregulation trend, electricity prices were highly regulated and were usually fairly predictable generators and wholesalers knew their production costs and revenues, and consumers knew their electricity costs. However, deregulation has caused electricity to become the most volatile of the commodities. Not only is the demand for electricity highly variable, but the inability to stor...