Publications / Research Papers
The Effect of the Regional Integration of Electricity Markets on the Market Power of Power PlantsCompetition and Regulation 2015 - books, chaptersPublished: 1 of December, 2007

The purpose of this paper is to construct a short-term economic model for the wholesale electricity market in the Central and Eastern European region - assuming conditions after a complete opening-up of the market. Among the inputs we provide an estimate for the generating capacities available and the cost of generation, demand as well as the transmisssion network data. The advantage of our modelling approach is that we simultaneously take into consideration: 1. at the current stage of market integration, major electricity generators are very powerful market players; 2. tighter market integration reduces the chances of abuse of market dominance and prices; 3. even complete market integration cannot sufficiently limit the power of electricity generators. However, the practical importance of our modelling results cannot be assessed appropriately without determining how realistic they are.

Available at the website of Hungarian Academy of Sciences