Advanced Search
MyIDEAS: Login to save this article or follow this journal

Implicit auctioning on the Kontek Cable: Third time lucky?

Contents:

Author Info

  • Meeus, Leonardo

Abstract

Implicit auctioning in Europe is about eliminating cross-border trade inefficiencies by internalizing cross-border trade into the day-ahead auction procedures of the Power Exchanges that are already organizing trade nationally. On the Kontek Cable, implicit auctioning has first been implemented with "no coupling" between the relevant Power Exchanges, followed by a "volume coupling" implementation, and finally a "one way price coupling" implementation that is still operational today. The main contribution of this paper is to compare the theoretical properties of these three implementations and to analyze their performance empirically. We find that the third implementation is significantly outperforming the previous two implementations, but in this third implementation stakeholders partly abandoned the "volume coupling" approach they initially believed to be a viable alternative and institutionally easier to implement.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://www.sciencedirect.com/science/article/B6V7G-51F25PR-1/2/171382730e81384e64390c3191c88502
Download Restriction: Full text for ScienceDirect subscribers only

As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.

Bibliographic Info

Article provided by Elsevier in its journal Energy Economics.

Volume (Year): 33 (2011)
Issue (Month): 3 (May)
Pages: 413-418

as in new window
Handle: RePEc:eee:eneeco:v:33:y:2011:i:3:p:413-418

Contact details of provider:
Web page: http://www.elsevier.com/locate/eneco

Related research

Keywords: Electricity markets Implicit auctions Cross-border trade;

Other versions of this item:

References

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
as in new window
  1. Benjamin F. Hobbs & Fieke A.M. Rijkers & Maroeska G. Boots, 2005. "The More Cooperation, The More Competition? A Cournot Analysis of the Benefits of Electric Market Coupling," The Energy Journal, International Association for Energy Economics, vol. 0(Number 4), pages 69-98.
  2. Meeus, L. & Vandezande, L. & Cole, S. & Belmans, R., 2009. "Market coupling and the importance of price coordination between power exchanges," Energy, Elsevier, vol. 34(3), pages 228-234.
  3. Parisio, Lucia & Bosco, Bruno, 2008. "Electricity prices and cross-border trade: Volume and strategy effects," Energy Economics, Elsevier, vol. 30(4), pages 1760-1775, July.
  4. Turvey, Ralph, 2006. "Interconnector economics," Energy Policy, Elsevier, vol. 34(13), pages 1457-1472, September.
  5. Newbery, D. & Tanga McDaniel, 2002. "Auctions and trading in energy markets -- an economic analysis," Cambridge Working Papers in Economics 0233, Faculty of Economics, University of Cambridge.
  6. Neuhoff, K., 2003. "Integrating Transmission and Energy Markets Mitigates Market Power," Cambridge Working Papers in Economics 0310, Faculty of Economics, University of Cambridge.
  7. Meeus, Leonardo & Purchala, Konrad & Belmans, Ronnie, 2005. "Development of the Internal Electricity Market in Europe," The Electricity Journal, Elsevier, vol. 18(6), pages 25-35, July.
  8. Richard Gilbert & Neuhoff, K. & Newbery, D., 2002. "Allocating Transmission to Mitigate Market Power in Electricity Networks," Cambridge Working Papers in Economics 0225, Faculty of Economics, University of Cambridge.
  9. Ehrenmann, A. & Neuhoff, K., 2003. "A Comparison of Electricity Market Designs in Networks," Cambridge Working Papers in Economics 0341, Faculty of Economics, University of Cambridge.
  10. Kristiansen, Tarjei, 2007. "A preliminary assessment of the market coupling arrangement on the Kontek cable," Energy Policy, Elsevier, vol. 35(6), pages 3247-3255, June.
  11. Meeus, Leonardo & Verhaegen, Karolien & Belmans, Ronnie, 2009. "Block order restrictions in combinatorial electric energy auctions," European Journal of Operational Research, Elsevier, vol. 196(3), pages 1202-1206, August.
  12. Derek Bunn & Georg Zachmann, 2010. "Inefficient arbitrage in inter-regional electricity transmission," Journal of Regulatory Economics, Springer, vol. 37(3), pages 243-265, June.
  13. Zachmann, Georg, 2008. "Electricity wholesale market prices in Europe: Convergence?," Energy Economics, Elsevier, vol. 30(4), pages 1659-1671, July.
  14. Kristiansen, Tarjei, 2007. "An assessment of the Danish-German cross-border auctions," Energy Policy, Elsevier, vol. 35(6), pages 3369-3382, June.
  15. Creti, Anna & Fumagalli, Eileen & Fumagalli, Elena, 2010. "Integration of electricity markets in Europe: Relevant issues for Italy," Energy Policy, Elsevier, vol. 38(11), pages 6966-6976, November.
  16. Chao, Hung-Po & Peck, Stephen, 1996. "A Market Mechanism for Electric Power Transmission," Journal of Regulatory Economics, Springer, vol. 10(1), pages 25-59, July.
Full references (including those not matched with items on IDEAS)

Citations

Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
as in new window

Cited by:
  1. Tanguy Janssen, Yann Rebours and Philippe Dessante, 2012. "Tight Volume Coupling: Analytical Model, Adverse Flow Causality and Potential Improvements," RSCAS Working Papers 2012/09, European University Institute.
  2. Richter, Jan & Viehmann, Johannes, 2013. "The Value of Information in Explicit Cross-Border Capacity Auction Regimes in Electricity Markets," EWI Working Papers 2013-5, Energiewirtschaftliches Institut an der Universitaet zu Koeln.
  3. Creti, Anna & Fumagalli, Eileen & Fumagalli, Elena, 2010. "Integration of electricity markets in Europe: Relevant issues for Italy," Energy Policy, Elsevier, vol. 38(11), pages 6966-6976, November.
  4. Marcelo Saguan & Leonardo Meeus, 2011. "Modeling the Cost of Achieving a Renewable Energy Target: Does it Pay to Cooperate Across Borders?," RSCAS Working Papers 2011/46, European University Institute.

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:eee:eneeco:v:33:y:2011:i:3:p:413-418. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Zhang, Lei).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.