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Risk Management in the New Electricity Trade

In: Electricity Market Reform in Norway

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  • Per Ingvar Olsen

Abstract

The perhaps most vital test of the new market regime will be its ability to manage the excessive volatility inherent in a system with substantial capacity variations from year to year and from season to season. A related question is whether the market system will be able to deliver new investments based on individual economic rationales rather than co-ordinated political/sectoral planning. Will the competitive market system in the longer run achieve an internationally competitive price level and a level of price stability acceptable to sector actors as well as to industrial and private consumers, or will the market system be politically constrained and supplied by governance mechanisms of collective action?

Suggested Citation

  • Per Ingvar Olsen, 2000. "Risk Management in the New Electricity Trade," Palgrave Macmillan Books, in: Eivind Magnus & Atle Midttun (ed.), Electricity Market Reform in Norway, chapter 5, pages 100-118, Palgrave Macmillan.
    • Handle: RePEc:pal:palchp:978-0-333-98274-7_5
    DOI: 10.1057/9780333982747_5
    as

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