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Profit Optimization of the Cross-Border Trade Between the Nordic and Russian Electricity Markets

In: Operations Research Proceedings 2012

Author

Listed:
  • Olga Gore

    (Lappeenranta University of Technology)

  • Satu Viljainen

    (Lappeenranta University of Technology)

  • Kalevi Kylaheiko

    (Lappeenranta University of Technology)

  • Ari Jantunen

    (Lappeenranta University of Technology)

Abstract

Europe aims for internal market in electricity. The target is to ensure the efficient use of interconnections, increase in social welfare and electricity price convergence. However, different market designs across Europe may create a threat to the efficiency of market integration. This paper presents results of a case study of the current operational principles of cross-border trade between Russian energy+capacity market and Nordic energy-only market. The results suggest that interraction of markets with different designs may lead to the non-optimal use of the interconnection.

Suggested Citation

  • Olga Gore & Satu Viljainen & Kalevi Kylaheiko & Ari Jantunen, 2014. "Profit Optimization of the Cross-Border Trade Between the Nordic and Russian Electricity Markets," Operations Research Proceedings, in: Stefan Helber & Michael Breitner & Daniel Rösch & Cornelia Schön & Johann-Matthias Graf von der Schu (ed.), Operations Research Proceedings 2012, edition 127, pages 169-175, Springer.
  • Handle: RePEc:spr:oprchp:978-3-319-00795-3_25
    DOI: 10.1007/978-3-319-00795-3_25
    as

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