This Website uses cookies. By using this website you are agreeing to our use of cookies and to the terms and conditions listed in our data protection policy. Read more

Journal of Industrial Economics

Real‐Time Versus Day‐Ahead Market Power in a Hydro‐Based Electricity Market

Journal Article
Tangerås, Thomas and Johannes Mauritzen (2019). “Real‐Time Versus Day‐Ahead Market Power in a Hydro‐Based Electricity Market”. Journal of Industrial Economics 66(4), 904–941.

Thomas Tangerås, Johannes Mauritzen

This paper develops a theoretical framework to analyze the link between real‐time and day‐ahead competition in a hydro‐based wholesale electricity market. Predictions of the model are tested on a detailed data set of trades and prices from the Nordic power exchange, Nord Pool. We study market performance before and after a reform that increased the number of price areas (local markets) in Sweden, and reject the hypothesis of perfect competition in some of the Swedish price areas. Our results suggest that firms exercised some local market power during the sample period.

Thomas Tangerås

+46 (0)8 665 4526
+46 (0)70 727 5448