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Reforming minute reserve policy in Germany: A step towards efficient markets?

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  • Rammerstorfer, Margarethe
  • Wagner, Christian

Abstract

The present paper provides an empirical assessment of the effects associated with the reorganization of minute reserve markets in Germany. As the aim of the regulator is to assure a competitive market with transparent pricing, we analyze whether the recent policy reform has had an impact on the dynamics of minute reserve prices. Our results show that the level and volatility of positive and negative minute reserve prices decreased substantially. Furthermore, we provide evidence that the degree of integration between reserve and spot markets has increased. Overall, prices reacted to the policy change in a manner that is in line with the regulator's objective. The reform can thus be viewed as a step towards an efficient reserve market.

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Bibliographic Info

Article provided by Elsevier in its journal Energy Policy.

Volume (Year): 37 (2009)
Issue (Month): 9 (September)
Pages: 3513-3519

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Handle: RePEc:eee:enepol:v:37:y:2009:i:9:p:3513-3519

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Web page: http://www.elsevier.com/locate/enpol

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Keywords: Balancing power Policy reform Market efficiency;

References

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Cited by:
  1. Sebastian Just & Christoph Weber, 2012. "Strategic Behavior in the German Balancing Energy Mechanism: Incentives, Evidence, Costs and Solutions," EWL Working Papers 1204, University of Duisburg-Essen, Chair for Management Science and Energy Economics, revised Oct 2012.

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