How to play the game as the bridge between two European power markets—the case of Western Denmark

Ole Jess Olsen, Eirik S. Amundsen, Bjarne Donslund

    Publikation: Bidrag til tidsskriftTidsskriftartikelForskningpeer review

    Resumé

    In this paper, we set out to investigate the price and quantity fluctuations in Western Denmark, which took place during the winter season 2002–2003. It was a period, which exhibited critical supply conditions in the Nordic area due to a shortage of hydropower. On average, the market in Western Denmark helped to ease the situation by large net exports. However, a more detailed investigation reveals anomalies in market behaviour that do not fit well into this overall positive description of the situation. Several explanations of the anomalies are offered. These may work separately or act in concert. In particular, we look at: the exercise of market power and gaming of the dominant power generator; the role of the large capacity of volatile wind power; the role of the guaranteed fixed prices and the design and functioning of the special auction system of transmission capacity in the interface between Western Denmark and Germany.
    OriginalsprogEngelsk
    TidsskriftEnergy Policy
    Vol/bind34
    Udgave nummer17
    Sider (fra-til)3293-3304
    Antal sider11
    ISSN0301-4215
    StatusUdgivet - 2006

    Bibliografisk note

    Paper id:: http://authors.elsevier.com/sd/article/S0301421505001849

    Emneord

      Citer dette

      Olsen, O. J., Amundsen, E. S., & Donslund, B. (2006). How to play the game as the bridge between two European power markets—the case of Western Denmark. Energy Policy, 34(17), 3293-3304.
      Olsen, Ole Jess ; Amundsen, Eirik S. ; Donslund, Bjarne. / How to play the game as the bridge between two European power markets—the case of Western Denmark. I: Energy Policy. 2006 ; Bind 34, Nr. 17. s. 3293-3304.
      @article{372e88309f2e11db9f01000ea68e967b,
      title = "How to play the game as the bridge between two European power markets—the case of Western Denmark",
      abstract = "In this paper, we set out to investigate the price and quantity fluctuations in Western Denmark, which took place during the winter season 2002–2003. It was a period, which exhibited critical supply conditions in the Nordic area due to a shortage of hydropower. On average, the market in Western Denmark helped to ease the situation by large net exports. However, a more detailed investigation reveals anomalies in market behaviour that do not fit well into this overall positive description of the situation. Several explanations of the anomalies are offered. These may work separately or act in concert. In particular, we look at: the exercise of market power and gaming of the dominant power generator; the role of the large capacity of volatile wind power; the role of the guaranteed fixed prices and the design and functioning of the special auction system of transmission capacity in the interface between Western Denmark and Germany.",
      keywords = "Electricity trade; Market power; Wind power",
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      year = "2006",
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      Olsen, OJ, Amundsen, ES & Donslund, B 2006, 'How to play the game as the bridge between two European power markets—the case of Western Denmark' Energy Policy, bind 34, nr. 17, s. 3293-3304.

      How to play the game as the bridge between two European power markets—the case of Western Denmark. / Olsen, Ole Jess; Amundsen, Eirik S.; Donslund, Bjarne.

      I: Energy Policy, Bind 34, Nr. 17, 2006, s. 3293-3304.

      Publikation: Bidrag til tidsskriftTidsskriftartikelForskningpeer review

      TY - JOUR

      T1 - How to play the game as the bridge between two European power markets—the case of Western Denmark

      AU - Olsen, Ole Jess

      AU - Amundsen, Eirik S.

      AU - Donslund, Bjarne

      N1 - Paper id:: http://authors.elsevier.com/sd/article/S0301421505001849

      PY - 2006

      Y1 - 2006

      N2 - In this paper, we set out to investigate the price and quantity fluctuations in Western Denmark, which took place during the winter season 2002–2003. It was a period, which exhibited critical supply conditions in the Nordic area due to a shortage of hydropower. On average, the market in Western Denmark helped to ease the situation by large net exports. However, a more detailed investigation reveals anomalies in market behaviour that do not fit well into this overall positive description of the situation. Several explanations of the anomalies are offered. These may work separately or act in concert. In particular, we look at: the exercise of market power and gaming of the dominant power generator; the role of the large capacity of volatile wind power; the role of the guaranteed fixed prices and the design and functioning of the special auction system of transmission capacity in the interface between Western Denmark and Germany.

      AB - In this paper, we set out to investigate the price and quantity fluctuations in Western Denmark, which took place during the winter season 2002–2003. It was a period, which exhibited critical supply conditions in the Nordic area due to a shortage of hydropower. On average, the market in Western Denmark helped to ease the situation by large net exports. However, a more detailed investigation reveals anomalies in market behaviour that do not fit well into this overall positive description of the situation. Several explanations of the anomalies are offered. These may work separately or act in concert. In particular, we look at: the exercise of market power and gaming of the dominant power generator; the role of the large capacity of volatile wind power; the role of the guaranteed fixed prices and the design and functioning of the special auction system of transmission capacity in the interface between Western Denmark and Germany.

      KW - Electricity trade; Market power; Wind power

      M3 - Journal article

      VL - 34

      SP - 3293

      EP - 3304

      JO - Energy Policy

      JF - Energy Policy

      SN - 0301-4215

      IS - 17

      ER -