Published in:Electricity Markets Working Paper ; No. WP-EM-30
Extent:
1 Online-Ressource (17 p)
Language:
English
DOI:
10.2139/ssrn.1285434
Identifier:
Origination:
Footnote:
Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments October 16, 2008 erstellt
Description:
This paper analyzes the interdependence of reserve and spot markets for electricity applying equilibrium models. We develop a Cournot model to analyze the impact of different pricing mechanisms at the reserve market (uniform and pay-as-bid) on spot market prices. Furthermore, we show how the demand requirement for reserve capacities can drive prices in the spot market. The models are tested using a dataset of the German electricity market. One result is that a more competitive reserve market helps to keep prices on the spot market low