Affiliated researchers

Mario Blázquez de Paz

Ph.D.

Among the questions that Mario Blázquez tries to answer with his research:

  • How does transmission constraint modify electricity auction market equilibrium?
  • How does transmission rights allocation modify the strategies of firms on electricity market auctions?
  • How does transmission constraint modify generation investment decisions?


 

New research

Production or Transmission Investments? A Comparative Analysis Mario Blázquez de Paz

Most of Mario Blázquez's research has so far focused on the impact that congestion on transmission electricity lines has on electricity auctions.

Working Papers

"Transmission Costs, Transmission Capacities and their Influence on Market Power in Wholesale Electricity Markets" IFN Working paper no. 1070.

"Auction Performance on Wholesale Electricity Markets in the Presence of Transmission Constraints and Transmission Costs" IFN Working paper no. 1098.

PhD. dissertation

"Effect of Transmission Constraints on a Single Price Electricity Market"

In the first chapter of my thesis, I have characterized the equilibrium when the transmission line is congested and the equilibrium price is unique in the wholesale market (Spain, Germany, France).

"Effect of Transmission Constraints on a Nodal Price Electricity Market"
In the second chapter of my thesis, I have analyzed the effect that different designs in the access to financial transmission rights has on spot electricity auctions. In particular, I have characterized the equilibrium in the spot electricity market when financial transmission rights are assigned to the grid operator and when financial transmission rights are assigned to the firm that submits the lowest bid in the spot electricity auction.

When financial transmission rights are assigned to the grid operator, my model, in contrast with the models available in the literature, works out the equilibrium for any transmission capacity.

Moreover, I have found that an increase in transmission capacity not only increases competition between markets but also within a single market. When financial transmission rights are assigned to the firm that submits the lowest bid in the spot electricity auction, firms compete not only for electricity demand, but also for transmission rights and the arbitrage profits derived from its hold. I have found that introduce competition for transmission rights reduces competition in spot electricity auctions.

"Optimal Expansion of the Electricity Grid"
In the third chapter of my thesis, I am analyzing the optimal expansion of the electricity grid. In particular, I am analyzing the effect that an increase in transmission capacity in different points of the electricity grid has on equilibrium. Moreover, I am analyzing the effect that an increase in transmission capacity has on generation capacity investment decisions. To sum up, I am analyzing the relation between the political decisions to increase transmission capacity in different points of the electricity grid and the endogenous investment decisions in generation capacity.

 

 

 

Mario Blázquez de Paz

Contact

mario.blanzquezdepaz@...

Introduction

Mario Blázquez de Paz received his Ph.D. from Bologna University in June 2014. The title of his dissertation was: “Designing Electricity Auctions in the Presence of Transmission Constraints” . From August 1, 2014 until August 31, 2017, he had a post doc at IFN, where he continued his research within the area of electricity markets From September 1, 2017, Mario Blázquez de Paz has a post doc at NTNU, the Norwegian University of Science and Technology, Trondheim. 

Leading Research Environment

IFN at the top

 

Illustration puff sid 1

 

The Research Institute of Industrial Economics, IFN, is a private and independent foundation devoted to pursuing highly relevant research for trade and industry.

The researchers at IFN are united in their belief that economic methods offer a powerful tool for understanding society.

The main research programs are:

  1. economics of entrepreneurship
  2. globalization and corporate restructuring
  3. economics of the service sector
  4. economics of the electricity markets
  5. economics of institutions and culture.

Global Award

Research on entrepreneurship

 

GAER_logo_V2

 

The Global Award for Entrepreneurship Research is the foremost global award for research on entrepreneurship.This Prize is awarded annually with a prize sum of EUR 100,000.

IFN in cooperation with Entreprenörskapsforum and Vinnova are the principals of the award, in cooperation with the donor, Stockholms Köpmansklubb.

Professor Olav Sorenson, Yale, is the winner of the Global Award for Entrepreneurship Research 2018. He will receive the award at a ceremony on May 14, 2018, in Stockholm.

Research Institute of Industrial Economics, Grevgatan 34 - 2 fl, Box 55665, SE-102 15 Stockholm, Sweden | Phone: +46-(0)8-665 45 00 | info@ifn.se