Competitive Equilibrium in the Italian Wholesale Electricity Market

Abstract

The market power analysis in electricity market is relevant for understanding the

Renewable energy and its impact on thermal generation

“…In the presence of congestion in the electricity grid, the market is split into up to six different market zones (see Figure 1) with different prices. However, according to Bigerna et al (2015Bigerna et al ( , 2016; Sapio (2015) this is mainly an issue between Sicily and the mainland.…”

“…Another advantage of using data differentiated by zones, is that we now have variation of renewables and residual demand over time and zone and not solely over time which highlights the causal effect of renewables on emission factors. However, according to Bigerna et al (2015Bigerna et al ( , 2016; Sapio (2015) inter-market congestion is mainly an issue between Sicily, and the mainland. Hence, in the remainder of the paper we mainly concentrate on the other cases.…”

Renewable Energy Intermittency and its Impact on Thermal Generation

“…In the presence of congestion in the electricity grid, the market is split into up to six different market zones (see Figure 1) with different prices. However, according to Bigerna et al (2015Bigerna et al ( , 2016; Sapio (2015) this is mainly an issue between Sicily and the mainland.…”

“…albeit at a slightly lower level (see column 5 in Table 2). According to Bigerna et al (2015Bigerna et al ( , 2016; Sapio (2015) inter-market congestion is mainly an issue between Sicily and the mainland, which weakens the importance of this specification. Hence, in the remainder of the paper we mainly concentrate on the other cases.…”