| 1. |
- Fogelberg, Sara, et al.
(author)
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Strategic withholding through production failures
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Other publication (other academic/artistic)abstract
- Anecdotal evidence indicates that electricity producers use production failures to disguise strategic reductions of capacity in order to influence prices, but systematic evidence is lacking. We use an instrumental variables approach and data from the Swedish energy market to examine such behavior. In a market without strategic withholding, the decision of report a failure should be independent of the market price. We show that marginal producers base the decision to report a failure, in part, on prices, which indicates that failures are a result of economic incentives as well as technical problems.
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| 2. |
- Holmberg, Pär, et al.
(author)
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Comparison of congestion management techniques: Nodal, zonal and discriminatory pricing
- 2015
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In: Energy Journal. - : International Association for Energy Economics. - 1944-9089 .- 0195-6574. ; 36:2, s. 145-166
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Journal article (peer-reviewed)abstract
- Wholesale electricity markets use different market designs to handle congestion in the transmission network. We compare nodal, zonal and discriminatory pricing in general networks with transmission constraints and loop flows. We conclude that in large games with many producers and certain information, the three market designs result in the same efficient dispatch. However, zonal pricing with counter-trading results in additional payments to producers in export-constrained nodes, which leads to inefficient investments in the long-run.
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| 3. |
- Holmberg, Pär, et al.
(author)
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Congestion Management in Electricity Networks: Nodal, Zonal and Discriminatory Pricing
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Other publication (other academic/artistic)abstract
- IFN Working paper. Wholesale electricity markets use different market designs to handle congestion in the transmission network. We compare nodal, zonal and discriminatory pricing in general networks with transmission constraints and loop flows. We conclude that in large games with many producers who are allowed to participate in the real-time market the three market designs result in the same efficient dispatch. However, zonal pricing with counter-trading results in additional payments to producers in export-constrained nodes.
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| 4. |
- Lazarczyk Carlson, Ewa
(author)
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Essays on Electricity Markets : Information and Trading
- 2014
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Doctoral thesis (other academic/artistic)abstract
- This thesis consists of four essays examining the functioning of electricity markets. The first article builds on a game-theoretical model, the three other articles discuss empirically the link between information and price formation process. Comparison of congestion management techniques: Nodal, zonal and discriminatory pricing, compares different market designs used to handle congestion in electricity transmission networks. Market-specific news and its impact on forward premia on electricity markets is an empirical analysis of the impact messages informing about sudden events affecting the power market have on price differences between the day-ahead and the intra-day Nordic electricity market. Strategic withholding through production failures, studies a previously unexamined way through which electricity producers can withhold capacity in order to increase prices on the Nordic electricity market and verifies whether the decision to stop production and inform about a sudden failure is based on economic incentives or rather is a result of a technical problem. Private and public information on the Nordic intra-day electricity market is an investigation of how traders on the Nordic intra-day electricity market react to public news about sudden failures on the power grid and whether they use private information about forthcoming outages in trading.
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| 5. |
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| 6. |
- Lazarczyk Carlson, Ewa
(author)
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Market-specific news and its impact on forward premia on electricity markets
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Other publication (other academic/artistic)abstract
- This paper studies the impact of market specific news on the short-term forward premia on the Nordic electricity market. I show that the short-term premia between the day-ahead and intra-day electricity prices on the Nordic market can be partly explained by the arrival of news specific to the power market. By exploring the types of news, I show that production failures are most important in shaping premia. Production disruptions in coal-powered units are most frequent and have the greatest effect on the differences between the day-ahead and intra-day prices.
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| 7. |
- Lazarczyk Carlson, Ewa
(author)
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Private and public information on the Nordic intra-day electricity market
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Other publication (other academic/artistic)abstract
- This paper is an empirical investigation of how traders react to public news on the Nordic intra-day electricity market. Using detailed trade information and GARCH models this paper examines market participants' reaction to news about sudden production and transmission failures on the electricity grid. I divide the time of news announcement into three phases: the preannouncement period - the interval up to fifteen minutes before the public announcement of a message, the contemporaneous period - the interval up to fifteen minutes after the announcement of a message, and the post-announcement period - the interval between fifteen to sixty minutes after the announcement of a message. I find that news affects the mean price levels but does not affect volatility. No effect of news on prices and volumes is seen in the preannouncement period, indicating that even if private information exists it is not being used for trading on the intra-day market.
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