Search

Begin New Search
Proceed to Checkout

Search Results for All:
(Showing results 1 to 4 of 4)



Market Structure and the Price of Electricity: An Ex Ante Analysis of the Deregulated Swedish Electricity Market

Bo Andersson and Lars Bergman

Year: 1995
Volume: Volume16
Number: Number 2
DOI: 10.5547/ISSN0195-6574-EJ-Vol16-No2-5
View Abstract

Abstract:
Following new legislation the Swedish electricity market is about to be deregulated. The new system is designed to ensure competition introduction and supply. The main motive for deregulation is to increase competition and thus achieve lower market prices. A possible threat to this outcome is the high degree of concentration on the seller side that characterizes the Swedish electricity market. In this paper we show that given the current structure of firms on the supply side, deregulation is not a sufficient condition for lower equilibrium prices in the electricity market. We use a numerical model to explore the quantitative relation between the Cournot-equilibrium price, the number of firms, and the size distribution of firms in the Swedish electricity market. We compute equilibrium electricity prices and a welfare measure in order to quantify the effect of asymmetric market concentration on competition.



Will Cross-Ownership Re-Establish Market Power in the Nordic Power Market?

Eirik S. Amundsen and Lars Bergman

Year: 2002
Volume: Volume23
Number: Number 2
DOI: 10.5547/ISSN0195-6574-EJ-Vol23-No2-3
View Abstract

Abstract:
The integration of the power markets in Norway and Sweden in 1996 significantly constrained the major power companies' ability to exercise market power within their national borders. In recent years, however, mergers and reciprocal acquisition of shares have reduced the number of independent players on the Norwegian-Swedish power market. The aim of this paper is to explore to what extent increasing cross-ownership among the major power companies in Norway and Sweden might re-establish the market power that was lost when the two national power markets were integrated. The analysis is based on a numerical model, assuming Cournot quantity setting behavior, of the Norwegian-Swedish power market. The simulation results suggest that partial ownership relations between generators tend to increase horizontal market power and thus the market price of electricity.



The Nordic Market: Signs of Stress?

Nils-Henrik M. von der Fehr, Eirik S. Amundsen and Lars Bergman

Year: 2005
Volume: Volume 26
Number: Special Issue
DOI: 10.5547/ISSN0195-6574-EJ-Vol26-NoSI-4
View Abstract

Abstract:
The supply shock that hit the Nordic electricity market in 2002-2003 put the market to a severe test. A sharp reduction in inflow to hydro reservoirs during the normally wet months of late autumn pushed electricity prices to unprecedented levels. We take this event as the starting point for analysing some potential weaknesses of the Nordic market. We conclude that fears regarding supply security and adequacy are likely to be unfounded. Nevertheless, as inherited over-capacity is eroded, and new market-based environmental regulation takes effect, tighter market conditions are to be expected. It is then crucial that retail markets are fully developed so as to allow consumers to adequately protect themselves from occurrences of price spikes.



Green Certificates and Market Power on the Nordic Power Market

Eirik S. Amundsen and Lars Bergman

Year: 2012
Volume: Volume 33
Number: Number 2
DOI: 10.5547/01956574.33.2.5
View Abstract

Abstract:
The purpose of this study is to elucidate under which circumstances, how, and to what extent market power on a Tradable Green Certificates (TGC) market can be used to affect an entire electricity market. There are basically two reasons for being concerned with this. One is that a small number of companies may have exclusive access to first rate sites for wind power generation. The other is that withdrawal of a small number of TGCs implies a multiple reduction of electricity consumption, with corresponding increases of end user prices. We formulate both an analytical model to investigate economic principles and a numerical model based on that to investigate the Swedish TGC market operating in a setting of a common Nordic electricity market. The analysis shows that Swedish producers may exercise market power using the TGC-market but that this problem will be eliminated by opening the TGC-market for other Nordic countries. Keywords: Renewable energy, Electricity, Green certificates, Market power, Nordic power market





Begin New Search
Proceed to Checkout

 

© 2024 International Association for Energy Economics | Privacy Policy | Return Policy