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Physical and Financial Virtual Power Plants

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  • Bert Willems

Abstract

Regulators in Belgium and the Netherlands use different mechanisms to mitigate generation market power. In Belgium, antitrust authorities oblige the incumbent to sell financial Virtual Power Plants, while in the Netherlands regulators have been discussing the use of physical Virtual Power Plants. This paper uses a numerical game theoretic model to stimulate the behaviour of the generation firms and to compare the effects of both systems on the market power of the generators. It shows that financial Virtual Power Plants are better for society.

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File URL: http://www.econ.kuleuven.be/eng/ew/discussionpapers/Dps05/Dps0512.pdf
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Bibliographic Info

Paper provided by Katholieke Universiteit Leuven, Centrum voor Economische Studiën in its series Center for Economic Studies - Discussion papers with number ces0512.

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Date of creation: Mar 2005
Date of revision:
Handle: RePEc:ete:ceswps:ces0512

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Cited by:
  1. Sibly, Hugh & Tooth, Richard, 2008. "Bringing competition to urban water supply," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 52(3), September.
  2. Hugh Sibly & Richard Tooth, 2008. "Bringing competition to urban water supply ," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 52(3), pages 217-233, 09.
  3. Cédric Argenton & Bert Willems, 2011. "Exclusion through speculation," RSCAS Working Papers 2011/63, European University Institute.

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