Increasing Competition in the British Electricity Spot Market

Green, Richard

doi:10.2307/2950646

Cited by 282 publications

(196 citation statements)

References 5 publications

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“…The basic equation governing the SFE solution is provided by Green (1996) as his equation (4), which we quote here for reference:…”

Section: Formulationmentioning

confidence: 99%

“…These marginal cost estimates are based on Bunn and Day (1999). 13 The cost at maximum capacity follows Green (1996) for generators with thermal plant. These costs can be thought of as either simple cycle turbine costs or the costs of coal plant running very few hours and recovering start up and no load costs over that short period.…”

Section: The Eandw Electricity Marketmentioning

confidence: 99%

“…2.3 Solution Klemperer and Meyer (1989), Green and Newbery (1992), and Green (1996) describe the optimization problem faced by firm i assuming that the supply functions q j of the other firms j remain fixed over the time horizon. The basic equation governing the SFE solution is provided by Green (1996) as his equation (4), which we quote here for reference:…”

Section: Formulationmentioning

confidence: 99%

“…Green (1996) used a linear version of this model and applied it to prospective divestitures of generation assets mandated by the regulator of the electricity industry in E&W. We offer a generalization of Green's model and extend the application to subsequent changes in the horizontal structure of the electricity market in E&W, beyond those studied by Green. In particular, we introduce cost heterogeneity, capacity limits, and non-zero marginal cost intercepts into the linear supply function equilibrium framework.…”

Section: Introductionmentioning

confidence: 99%

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Theory and Application of Linear Supply Function Equilibrium in Electricity Markets

Baldick

Grant

Kahn

2004

Journal of Regulatory Economics

274

176

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We consider a supply function equilibrium (SFE) model of interaction in an electricity market. We assume a linear demand function and consider a competitive fringe and several strategic players having capacity limits and affine marginal costs. The choice of SFE over Cournot equilibrium and other models and the choice of affine marginal costs is reviewed in the context of the existing literature.We assume that bid rules allow affine or piecewise affine non-decreasing supply functions by firms and extend results of Green and Rudkevitch concerning the linear SFE solution. An incentive compatibility result is proved. We also find that a piecewise affine SFE can be found easily for the case where there are non-negativity limits on generation.Upper capacity limits, however, pose problems and we propose an ad hoc approach. 1 We apply the analysis to the England and Wales electricity market, considering the 1996 and 1999 divestitures. The piecewise affine SFE solutions generally provide better matches to the empirical data than previous analysis.

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“…The basic equation governing the SFE solution is provided by Green (1996) as his equation (4), which we quote here for reference:…”

Section: Formulationmentioning

confidence: 99%

Section: The Eandw Electricity Marketmentioning

confidence: 99%

Section: Formulationmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

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Theory and Application of Linear Supply Function Equilibrium in Electricity Markets

Baldick

Grant

Kahn

2004

Journal of Regulatory Economics

274

176

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“…Green (1996) pioneered the study of competition in electricity spot markets. While the analysis of market entry has received less attention, the joint effect of vertical disintegration and entry has never been studied in a systematic way in the laboratory.…”

Section: Literature Reviewmentioning

confidence: 99%

Vertical separation vs. independent downstream entry in an electricity network: Experimental insights

Ciarreta

Fatás

Georgantzı́s

et al. 2017

Electric Power Systems Research

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We analyze a realistic simulation of a complex electricity network. We obtain the data with a series of experimental sessions designed to closely replicate the Spanish Electricity Market. In the experiments reported here we compare the status quo with two alternative regulatory market structures. In one of them, labeled as vertical separation, we impose that power generating firms and electricity distributors operate as independent business groups. In the second, we study the effect of entry by independent end-suppliers. Both alternative scenarios dominate the status quo in terms of market efficiency, but the latter of them dominates the former.

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Modeling Electricity Markets: A Brief Introduction

Momoh

Mili

2009

Economic Market Design and Planning for Electric Power Systems

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Increasing Competition in the British Electricity Spot Market

Cited by 282 publications

References 5 publications

Theory and Application of Linear Supply Function Equilibrium in Electricity Markets

Theory and Application of Linear Supply Function Equilibrium in Electricity Markets

Vertical separation vs. independent downstream entry in an electricity network: Experimental insights

Modeling Electricity Markets: A Brief Introduction

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