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
Il DOI è il codice a barre della proprietà intellettuale: per saperne di più clicca qui

Qui sotto puoi vedere in anteprima la prima pagina di questo articolo.

Se questo articolo ti interessa, lo puoi acquistare (e scaricare in formato pdf) seguendo le facili indicazioni per acquistare il download credit. Acquista Download Credits per scaricare questo Articolo in formato PDF

Anteprima articolo

FrancoAngeli è membro della Publishers International Linking Association, Inc (PILA)associazione indipendente e non profit per facilitare (attraverso i servizi tecnologici implementati da CrossRef.org) l’accesso degli studiosi ai contenuti digitali nelle pubblicazioni professionali e scientifiche

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. .

Keywords:Electricity, market power, Germany, oligopolistic market

Jel codes:L13, L94, D43

  1. Atkins R. and Taylor A. (1999). Germany Shows the Way for Europe. Financial Times, 21.
  2. Benhmad F. and Perçebois J. (2013). Les distorsions induites par les énergies intermittentes sur le marché spot de l’électricité. Economies et Sociétés, 2: 275-297.
  3. BNetzA, List of Power Plants, Bundesnetzagentur (BNetzA). Accessed 29 October 2014.
  4. Bower J., Bunn D.W. and Wattendrup C. (2001). A Model-Based Analysis of Strategic Consolidation in the German Electricity Industry. Energy Policy, 29 (12): 987-1005. DOI: 10.1016/s0301-4215(01)00034-9
  5. Borenstein S. (2000). Understanding Competitive Pricing and Market Power in Wholesale Electricity Markets. The Electricity Journal, 13 (6): 49-57. DOI: 10.1016/s1040-6190(00)00124-x
  6. Competition, Directorate-General (2007). DG Competition Report on Energy Sector Inquiry. SEC (2006), 1724.
  7. der Kohlenwirtschaft (2013). Statistik, Entwicklung ausgewählter Energiepreise. Accessed 2013.
  8. FNA and FCO (2013). Monitoring Report 2012, Developments of the Electricity and Gas Markets in Germany. Technical Report.
  9. Harvey S. and Hogan W. (2007). Market Power and Market Simulations. Retrieved May, 2002, 4.
  10. Janssen M. and Wobben M. (2009). Electricity Pricing and Market Power-evidence from Germany. European Transactions on Electrical Power, 19 (4): 591-611.
  11. Kunz F. and Zerrahn A. (2013). The Benefit of Coordinating Congestion Management in Germany. Technical Report.
  12. Lang C. and Schwarz H. (2006). Rise in German Wholesale Electricity Prices: Fundamental Factors, Exercise of Market Power, or Both? IWE Working Paper, Nr. 02.
  13. Möst D. and Genoese M. (2009). Market Power in the German Wholesale Electricity Market. The Journal of Energy Markets, 2 (2): 47-74.
  14. Müsgens F. (2006). Quantifying Market Power in the German Wholesale Electricity Market Using a Dynamic Multi-Regional Dispatch Model. The Journal of Industrial Economics, 54 (4): 471-498. DOI: 10.1111/j.1467-6451.2006.00297.x
  15. OECD/IEA (2013). Energy Policies of IEA Countries: Germany 2013. Technical Report, 26.
  16. Meritet S. and Pham T. (2015). Market Power in Power Markets: The Case of French Electricity Wholesale Market. Energy Studies Reviews, 21 (2)
  17. Schill W.-P. and Kemfert C. (2011). Modeling Strategic Electricity Storage: The Case of Pumped Hydro Storage in Germany. Energy Journal-Cleveland, 32 (3): 59. DOI: 10.5547/issn0195-6574-ej-vol32-no3-3
  18. Schröder A., Kunz F., Meiss J., Mendelevitch R. and Von Hirschhausen C. (2013). Current and Prospective Costs of Electricity Generation until 2050. German Institute for Economic Research, DIW Berlin, 12.
  19. Twomey P., Green R.J., Neuhoff K. and Newbery D. (2006). A Review of the Monitoring of Market Power the Possible Roles of Tsos in Monitoring for Market Power Issues in Congested Transmission Systems.
  20. Weigt H. and Von Hirschhausen C. (2008). Price Formation and Market Power in the German Wholesale Electricity Market in 2006. Energy Policy, 36 (11): 4227-4234. DOI: 10.1016/j.enpol.2008.07.020

  • Market Power Issues in Liberalized Wholesale Electricity Markets: A Review of the Literature with a Look into the Future Thao Pham, in Revue d'économie politique /2019 pp.325
    DOI: 10.3917/redp.293.0325
  • Artificial Intelligence and Renewables Towards an Energy Transition S. H. Oudjana, Rabie Zine, Mustafa Mosbah, Abdelouahab Khattara, Salem. Arif, pp.252 (ISBN:978-3-030-63845-0)
  • A review of market power‐mitigation mechanisms in electricity markets Xueshan Lin, Beibei Wang, Zhongming Xiang, Yaxian Zheng, in Energy Conversion and Economics /2022 pp.304
    DOI: 10.1049/enc2.12067
  • Smart Energy Empowerment in Smart and Resilient Cities Mustafa Mosbah, Rabie Zine, Samir Hamid-Oudjana, Salem Arif, pp.566 (ISBN:978-3-030-37206-4)

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