The traditional measure of market power is the HHI, which gives implausible results given the low elasticity of demand in electricity spot markets, unless it is adapted to take account of contracting. In its place the Residual Supply Index has been proposed as a more suitable index to measure potential market power in electricity markets, notably in California and more recently in the EU Sector...

In a number of jurisdictions, deregulation has led to the establishment of auction spot markets for electricity supply. Short run demand for electricity is almost totally inelastic, and in most situations economically significant amounts of electricity cannot be stored. During periods when demand is relatively high, suppliers with what, in other markets, would be regarded as a relatively small ...

The paper concentrates on four aspects of mitigating market power in European electricity networks: capacity divestiture, entry, promoting interconnection, and the capacity to regulate competition in generation, drawing on lessons from Britain, California and the Continent. Each of these actions can improve the intensity of competition in electricity wholesale markets, but attractive strategies...

We address a method for pricing electricity contracts based on valuation of ability to produce power, which is considered as the true underlying for electricity derivatives. This approach shows that an evaluation of free production capacity provides a framework where a change–of–numeraire transformation converts electricity forward market into the common settings of money market modeling. Using...

because of electricity subsidies, electricity price in iran is much lower than its real value, and the growth of electricity demand is much more than its rational rate, which in turn implies ever increasing investment in the electricity section by the government. therefore, the recent government policies are based on elimination of electricity subsidies, followed by commissioning complete elect...

A major cause for many of the problems that have afflicted wholesale electricity markets is the unrealized potential for the demand-side to be a full participant. Ironically, when Fred Schweppe first envisioned an electricity market in which prices efficiently coordinated the actions of market participants, he focused on the potential for improved efficiency in power consumption, not generation...

Overall price optimization strategy in the deregulated electricity market is one of the most important challenges for the participants, In this paper, we used Contingency Analysis Module of NEPLAN Software, a strategy of pricing to market participants is depicted.Each of power plants according to their size and share of the Contingency Analysis should be considered in the price of its hour. In ...

This paper introduces an application of financial risk management methods to the deregulated electricity markets. A framework for the Monte Carlo performance simulation of a power portfolio is presented. The optimal portfolio selection problem is addressed and a numerical method is implemented. Numerical results of simulation and optimization are presented in the Nordic electricity market. The ...