Energiewende and competition in Germany: Diagnosing market power in wholesale electricity market
Titolo Rivista ECONOMICS AND POLICY OF ENERGY AND THE ENVIRONMENT
Autori/Curatori Thao Pham
Anno di pubblicazione 2016 Fascicolo 2015/2
Lingua Inglese Numero pagine 21 P. 29-49 Dimensione file 1094 KB
DOI 10.3280/EFE2015-002004
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German power market has undergone many fundamental changes in 2011 following the Fukushima nuclear accident (March 2011). Prices on wholesale electricity market are at the highest level since mid-2009. The purpose of this chapter is to identify whether market power is responsible for this increase. Following the method of linear programming as commonly used in the literature of electricity market modelling, we simulate a competitive benchmark for German wholesale market taking into account power plant characteristics, fuel and CO2-allowance prices and renewables power generation. On the basis of the difference between modeled marginal costs and observed market prices, we estimate the price-cost markups, or the Lerner Indexes across hours. .
Parole chiave:Electricity, market power, Germany, oligopolistic market
Jel codes:L13, L94, D43
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Thao Pham, Energiewende and competition in Germany: Diagnosing market power in wholesale electricity market in "ECONOMICS AND POLICY OF ENERGY AND THE ENVIRONMENT" 2/2015, pp 29-49, DOI: 10.3280/EFE2015-002004