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dc.contributor.authorOlmos, Luisen_GB
dc.contributor.authorNeuhoff, Karstenen_GB
dc.date.accessioned2004-06-16T16:05:46Z
dc.date.available2004-06-16T16:05:46Z
dc.date.created2004-04en_GB
dc.date.issued2004-06-16T16:05:46Z
dc.identifier.urihttp://www.dspace.cam.ac.uk/handle/1810/403
dc.identifier.urihttps://www.repository.cam.ac.uk/handle/1810/403
dc.description.abstractElectricity transmission contracts allocate scarce resources, allow hedging against locational price differences and provide information to guide investment. Liquidity is increased if all transmission contracts are defined relative to one balancing point, then a set of two contracts can replicate any point to point contract. We propose an algorithm and apply it to the European electricity network to identify a well connected balancing point that exhibits minimal relative cross-price responses and hence reduces market power exercised by generation companies. Market level data which is difficult to obtain or model such as price levels in different regions or that is dependent on the time scale of interaction, as demand elasticity, is not required. The only critical input quantities are assumptions on future transmission constraint patterns.en_GB
dc.format.extent1156351 bytes
dc.format.mimetypeapplication/pdfen_GB
dc.format.mimetypeapplication/pdf
dc.language.isoen_GB
dc.publisherFaculty of Economics
dc.relation.ispartofseriesCambridge Working Papers in Economics
dc.rightsAll Rights Reserveden
dc.rights.urihttps://www.rioxx.net/licenses/all-rights-reserved/en
dc.subject.classificationClassification-JEL: D43, L94, L50en_GB
dc.subject.otherKeywords: Transmission contract design, Congestion management, Market Power, European electricity networken_GB
dc.titleDefinition of a Balancing Point for Electricity Transmission Contractsen_GB
dc.typeWorking Paperen
dc.identifier.doi10.17863/CAM.5404


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