How to allocate forward contracts: The case of electricity markets
نویسندگان
چکیده
منابع مشابه
Forward Contracts in Electricity Markets: the Australian Experience
Forward contracts play a vital role in all electricity markets, and yet the details of the market for forward contracts are often opaque. In this paper we review the existing literature on forward contracts and explore the contracting process as it operates in Australia. The paper is based on interviews with participants in Australia’s National Electricity Market. The interviews were designed t...
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In this paper capacity withholding in an oligopolistic electricity market that all Generation Companies (GenCos) bid in a Cournot model is analyzed and the capacity withheld index, the capacity distortion index and the price distortion index are obtained and formulated. Then a new index, Distortion-Withheld Index (DWI), is proposed in order to measure the potential ability of market for capacit...
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Several regulatory authorities worldwide have imposed forward contract obligations on electricity producers as a way to mitigate their market power. In order to understand the e¤ects of such contractual obligations, we introduce forward contracting in a uniform-price auction model with complete information and discrete bids. The model predicts that forward contracts are generally pro-competitiv...
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Higher renewables penetration reduces the incentive of conventional electricity generators to sell forward production. This can undermine the role of forward contracting in mitigating market power. More renewable energy raises wholesale electricity prices in states of the world where its capacity utilization is low due to intermittency.
متن کاملModelling electricity forward markets by ambit fields
This paper proposes a new modelling framework for electricity forward markets based on so– called ambit fields. The new model can capture many of the stylised facts observed in energy markets and is highly analytically tractable. We give a detailed account on the probabilistic properties of the new type of model, and we discuss martingale conditions, option pricing and change of measure within ...
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ژورنال
عنوان ژورنال: European Economic Review
سال: 2012
ISSN: 0014-2921
DOI: 10.1016/j.euroecorev.2011.11.005