Real-Time Versus Day-Ahead Market Power in a Hydro-Based Electricity Market

26 Pages Posted: 21 Feb 2014

See all articles by Thomas Tangerås

Thomas Tangerås

Research Institute of Industrial Economics (IFN)

Johannes Mauritzen

NHH Norwegian School of Economics

Multiple version iconThere are 2 versions of this paper

Date Written: February 19, 2014

Abstract

We analyse in a theoretical framework the link between real-time and day-ahead market performance in a hydro-based and imperfectly competitive wholesale electricity market. Theoretical predictions of the model are tested on data from the Nordic power exchange, Nord Pool Spot (NPS). We reject the hypothesis that prices at NPS were at their competitive levels throughout the period under examination. The empirical approach uses equilibrium prices and quantities and does not rely on bid data nor on estimation of demand or marginal cost functions.

Keywords: Hydro power, market power, Nord Pool Spot

JEL Classification: D43, D92, L13, L94, Q41

Suggested Citation

Tangerås, Thomas and Mauritzen, Johannes, Real-Time Versus Day-Ahead Market Power in a Hydro-Based Electricity Market (February 19, 2014). IFN Working Paper No. 1009. Available at SSRN: https://ssrn.com/abstract=2398857 or http://dx.doi.org/10.2139/ssrn.2398857

Thomas Tangerås (Contact Author)

Research Institute of Industrial Economics (IFN) ( email )

Box 55665
Grevgatan 34, 2nd floor
Stockholm, SE-102 15
Sweden

HOME PAGE: http://www.ifn.se/thomast

Johannes Mauritzen

NHH Norwegian School of Economics ( email )

Helleveien 30
Bergen, NO-5045
Norway

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