Amundsen, Eirik S. and Bergman, Lars (2007): Provision of operating reserve capacity: Principles and practices on the Nordic Electricity Market. Published in: Competition and Regulation in Network Industries (Intersentia) , Vol. Vol. 2, No. 1 (2007): pp. 73-98.
Download (3708Kb) | Preview
System reliability is a key aspect of electricity supply, and the ability to maintain system reliability this is an important aspect of a liberalised electricity market. But system reliability can be ensured only if there is sufficient operating reserve capacity at all times. In a liberalised electricity market the provision of operating reserve capacity is a matter of incentives that should be formulated on basic principles of economic behaviour. The Nordic electricity market, comprising the integrated Danish, Finnish, Norwegian, and Swedish electricity markets, has worked well from a system reliability point of view. A key factor behind this favourable outcome is that the incentives for keeping sufficient operating reserve capacity have been strong enough. The reason for this is an adequate institutional design. More precisely the set of markets that is commonly called “the electricity market” includes both regulation and capacity markets, and rules and regulations are such that these markets are well-functioning.
|Item Type:||MPRA Paper|
|Original Title:||Provision of operating reserve capacity: Principles and practices on the Nordic Electricity Market|
|Keywords:||Nordic electricity market, operating reserve capacity, peak capacity, capacity market|
|Subjects:||L - Industrial Organization > L5 - Regulation and Industrial Policy > L51 - Economics of Regulation
L - Industrial Organization > L1 - Market Structure, Firm Strategy, and Market Performance > L11 - Production, Pricing, and Market Structure; Size Distribution of Firms
L - Industrial Organization > L1 - Market Structure, Firm Strategy, and Market Performance > L10 - General
L - Industrial Organization > L9 - Industry Studies: Transportation and Utilities > L94 - Electric Utilities
L - Industrial Organization > L1 - Market Structure, Firm Strategy, and Market Performance
|Depositing User:||Eirik S. Amundsen|
|Date Deposited:||03. Oct 2008 01:13|
|Last Modified:||11. Feb 2013 23:32|
Abott M. (2001) “Is the security of supply a public good?”, The Electricity Journal, August/September 2001, pp. 31-33.
Amundsen, E. S. and L. Bergman (2006) “Why has the Nordic electricity market worked so well?”, Utility Policy, 14 (148-157. doi: 10.1016/j.jup.2006.01.001.
Amundsen, E. S. and Bergman “Integration of multiple national markets for electricity: The case of Norway and Sweden”, Energy Policy 2007; Vol. 35, No. 6, p. 3383-3394
Balériaux, H., E. Jamoule and F.L. De Duertechin (195´67) “Simulation d’exploitation d’un Parc de Machines Thermiques de production d’électricité couple à des stations de Pompage Extrait de la Revue, Edition S.R.B.E., Vol. 5, pp.3-24.
Booth R.R. (1972) “Power System Simulation based on Probability Analysis”, IEEE Trans. On PAS, Vol. PAS-91, No 1. Jan./Feb., 1972, pp. 62-69.
Crampton, P. and S. Stoft (2005) “A Capacity Market that Makes sense”, The Electricity Journal, 18, 43-54.
De Vries, L. J. (2003) “Securing Peak-Load Capacity in Restructured Power Markets”, Ph.D. Thesis, NTNU, Norway.
Hobbs, B.F. and J. Iñón (2001) “Issues concerning ICAP ad alternative approaches for power capacity markets” paper presented at the ELFORSK:s et al. conference “Methods to Secure Peak Load Capacity on Deregulated Electricity Markets” I Saltsjöbaden, 7-8 June 2001.
Hobbs. B.F., J. Iñón and S. Stoft (2001) “Installed capacity requirements and price caps: oil on water, or fuel on fire?” The Electricity Journal, 14, 23-34.
Nilsson, G. and B. Walther, (2001) “Market-based Power Reserves Acquirement”, presented at the ELFORSK conference “Methods to Secure Peak Load Capacity on Deregulated Electricity Markets” in Saltsjöbaden,7-8 June 2001.
Vázques, C., M. Rivier and I.J. Pérez-Arriaga (2001) “A Market Approach to Long-term Security of Supply” paper presented at the ELFORSK:s et al. conference “Methods to Secure Peak Load Capacity on Deregulated Electricity Markets” I Saltsjöbaden, 7-8 June 2001.
Von Der Fehr, N.H.M., E.S. Amundsen and L. Bergman (2005) “The Nordic Market: Signs of Stress?” The Energy Journal, Special Issue, 71-98.
Nordel, “Årsstatistikk 1991-2004” (Annual reports 1991-2004). http://www.nordel.org.