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Multi-Unit Auctions In The Procurement Of Electricity

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  • Dejan Trifunović
  • Bojan Ristić
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    Abstract

    This paper reviews some multi-unit auction mechanisms that are used in the procurement of electricity. In ordinary multi-unit auctions bidders compete to buy several units of the same object from the seller, while in procurement or reverse auctions suppliers of electricity compete to sell a certain number of units. Reverse electricity auctions are used in numerous countries and they create a competitive market for electricity, instead of state-owned monopolies providing electricity at administratively set prices. In this paper we will present the most commonly used multi-unit auction forms in electricity markets. Auctions for electricity from renewable energy sources deserve special attention, since these suppliers cannot compete with large-scale producers at the present state of technology.

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    Bibliographic Info

    Article provided by Faculty of Economics, University of Belgrade in its journal Economic Annals.

    Volume (Year): 58 (2013)
    Issue (Month): 197 (April – June)
    Pages: 47-78

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    Handle: RePEc:beo:journl:v:58:y:2013:i:197:p:47-78

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    Related research

    Keywords: Electricity auctions; Uniform-price auction; Discriminatory auction; Descending clock auction; Hybrid auctions; Sequential auctions; Combinatorial auctions.;

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