Vertical separation of generation from electricity retailing has often been required as a condition of electricity market liberalisation. A well-developed and liquid contracts market is similarly suggested as necessary to manage the resulting wholesale market risks, which risks are further exacerbated by competition. Such contracts markets are rare, however, and increasingly evidence is emergin...

In many European countries, natural gas-fired power plants are considered a possibility to quickly compensate the expected shortfall in electric energy supply. Increasing gasfired generation capacity would also increase the couplings and interactions between gas and electricity systems. So far, gas power plants participate in two different markets gas and electricity. Coupling these markets by ...

This paper studies optimal long-term electric power capacity strategies with capacity options. Gencos can sign contracts with Discos, where such contracts take the form of capacity options that may or may not be executed by Discos at some pre-specified maturation date. Capacity not offered in the options market, or for which options by Discos are not executed, can then be offered in the spot ma...

We introduce a model intended for the analysis of the upgrade of the national transmission grid which explicitly accounts for responses given by the power generating companies in terms of plant expansion. The problem is modeled as a bilevel program with mixed integer structure in both, upper and lower level. Upper level is defined by the transmission company problem which has to decide on how t...