Measuring the impact of market coupling on the Italian electricity market using ELFO++
This paper evaluates the impact on the Italian electricity market of replacing the current explicit auction mechanism with market coupling. Maximizing the use of the cross-border interconnection capacity, market coupling increases the level of market integration and facilitates the access to low-cost generation by consumers located in high-cost generation countries. Thus, it is expected that a high-priced area such as Italy could greatly benefit from the introduction of this mechanism. In this paper, the welfare benefits are estimated under alternative market scenarios for 2012, employing the optimal dispatch model ELFO++. The results of the simulations suggest that the improvement in social surplus is likely to be significant, especially when market fundamentals are tight.
|Date of creation:||Oct 2011|
|Date of revision:|
|Publication status:||Published in Energy Policy, 48, 2012, pp. 322–333. (Revised Version)|
|Contact details of provider:|| Postal: |
Phone: +44(0)1483 686956
Fax: +44(0)1483 689548
Web page: http://www.seec.surrey.ac.uk
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Federico Boffa & Carlo Scarpa, 2009. "An Anticompetitive Effect of Eliminating Transport Barriers in Network Markets," Review of Industrial Organization, Springer, vol. 34(2), pages 115-133, March.
- Malaguzzi Valeri, Laura, 2009.
"Welfare and competition effects of electricity interconnection between Ireland and Great Britain,"
Elsevier, vol. 37(11), pages 4679-4688, November.
- Laura Malaguzzi Valeri, 2008. "Welfare and Competition Effects of Electricity Interconnection between Great Britain and Ireland," Papers WP232, Economic and Social Research Institute (ESRI).
When requesting a correction, please mention this item's handle: RePEc:sur:seedps:133. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Lester C Hunt)
If references are entirely missing, you can add them using this form.