Combining Energy Networks
AbstractElectricity markets depend on upstream energy markets to supply the fuels needed for generation. Since these markets rely on networks, congestion in one can quickly produce changes in another. In this paper we develop a combined partial equilibrium market model which includes the interactions of natural gas and electricity networks. We apply the model to a stylized representation of Europe’s electricity and natural gas markets to illustrate the upstream and downstream feedback effects which are not obvious on first sight. We find that both congestion and loop-flow effects in electricity markets impact prices and quantities in markets located far from the initial cause of the market changes. Copyright Springer Science+Business Media, LLC 2012
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Bibliographic InfoArticle provided by Springer in its journal Networks and Spatial Economics.
Volume (Year): 12 (2012)
Issue (Month): 3 (September)
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Web page: http://www.springerlink.com/link.asp?id=106607
Electricity network; Natural gas network; Europe; MCP;
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- Juan Rosellón & Anne Neumann & Hannes Weigt, 2011.
"Removing Cross-Border Capacity Bottlenecks in the European Natural Gas Market: A Proposed Merchant-Regulatory Mechanism,"
Documentos de Trabajo
DTE 506, CIDE, Division de Economia.
- Anne Neumann & Juan Rosellón & Hannes Weigt, 2011. "Removing Cross-Border Capacity Bottlenecks in the European Natural Gas Market: A Proposed Merchant-Regulatory Mechanism," Discussion Papers of DIW Berlin 1145, DIW Berlin, German Institute for Economic Research.
- Jan Abrell & Clemens Gerbaulet & Franziska Holz & Casimir Lorenz & Hannes Weigt, 2013.
"Combining Energy Networks: The Impact of Europe's Natural Gas Network on Electricity Markets until 2050,"
Discussion Papers of DIW Berlin
1317, DIW Berlin, German Institute for Economic Research.
- Lorenz Casimir & Gerbaulet Clemens & Holz Franziska & Abrell Jan & Hannes Weigt, 2013. "Combining Energy Networks: The Impact of Europe's Natural Gas Network on Electricity Markets until 2050," Working papers 2013/10, Faculty of Business and Economics - University of Basel.
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