Real-time versus Day-ahead Market Power in a Hydro-based Electricity Market

Reprint No. 2019:26

Author(s): Thomas Tangerås and Johannes MauritzenYear: 2019 Title: Journal of Industrial Economics Volume (No.): 66 (4) Pages: 904–941
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Preliminary version

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.

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


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