Market power and strategic interaction in electricity networks
Article Abstract:
A market power model based on the Cournot quantity approach has been used to assess strategic interactions in electricity networks. It has been found that power transmission restraints induce strong interaction effects in different parts of a system. Horizontal market power can further be attained by increasing profit and production, utilizing feasibility constraints and reducing prices. The analysis also showed that an electricity generating firm would raise its production in an effort to deter a disproportionate amount of competing generation and increase their profits.
Publication Name: Resource and Energy Economics
Subject: Petroleum, energy and mining industries
ISSN: 0928-7655
Year: 1997
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Simulating electricity restructuring in California: interactions with the regional market
Article Abstract:
A multi-area chronological production simulation model has been used to analyze the effect of power exchange restructuring in California to the regional markets of western US. Results of the analysis showed that the overall operating economies as a consequence of the pooling initiative are not very significant. Furthermore, it was concluded that the regional dependence on imports and transmission congestion levels tend to rise with the increase in regional trade. Marginal cost pricing will also bring in economic rents for the electricity generating firms.
Publication Name: Resource and Energy Economics
Subject: Petroleum, energy and mining industries
ISSN: 0928-7655
Year: 1997
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Cogeneration and electric power industry restructuring
Article Abstract:
The experience of Louisiana with respect to industrial power generation provides concrete evidence that an increase in technical capabilities of firms leads to a corresponding increase in probabilities of both commercial and self generation. In addition, industrial power generation increases as a function of retail prices of electricity, industrial production, the ability to switch fuels and reduction in natural gas prices. It is also suggested that some industrial power generators may experience a stranded cost problem under a deregulated environment.
Publication Name: Resource and Energy Economics
Subject: Petroleum, energy and mining industries
ISSN: 0928-7655
Year: 1999
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A market power model based on the Cournot quantity approach has been used to assess strategic interactions in electricity networks. It has been found that power transmission restraints induce strong interaction effects in different parts of a system.