Being in Balance: Economic Efficiency in the Dutch Power Market

18 Pages Posted: 28 Sep 2004

See all articles by Ronald Huisman

Ronald Huisman

Erasmus University Rotterdam (EUR) - Erasmus School of Economics (ESE)

C. Huurman

Erasmus University Rotterdam (EUR) - Rotterdam School of Management (RSM)

Date Written: 13 2004 8,

Abstract

In this paper, we examine economic efficiency in the Dutch power market, an important pillar for successful creation of a competitive and non-discriminatory free power market. We examine historical time series of prices and volumes on the Dutch balancing market where energy companies are obliged to offer reserve capacity in order to offset power surpluses and deficits on the grid. We argue that these balancing prices and volumes are indicators for the level of economic efficiency. We find evidence that the level of economic efficiency has increased in the Dutch power market while the level of security of supply has maintained.

Keywords: deregulated energy markets, economic efficiency, indicators, balancing power market, balancing prices, balancing volumes dynamics

JEL Classification: M, G3, Q43

Suggested Citation

Huisman, Ronald and Huurman, Christian, Being in Balance: Economic Efficiency in the Dutch Power Market (13 2004 8,). ERIM Report Series Reference No. ERS-2004-065-F&A. Available at SSRN: https://ssrn.com/abstract=595000

Ronald Huisman (Contact Author)

Erasmus University Rotterdam (EUR) - Erasmus School of Economics (ESE) ( email )

P.O. Box 1738
3000 DR Rotterdam, NL 3062 PA
Netherlands

Christian Huurman

Erasmus University Rotterdam (EUR) - Rotterdam School of Management (RSM) ( email )

P.O. Box 1738
Room T08-21
3000 DR Rotterdam, 3000 DR
Netherlands

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