Title :
Comparing divestments and VPPs in electricity generation markets
Author :
Federico, Giulio ; López, Ángel L.
Author_Institution :
Public-Private Sector Res. Center, IESE, Barceluna, Spain
Abstract :
We study the impact of electricity divestments of intermediate size in a stylised model where a dominant producer faces a competitive fringe with the same cost structure and is forced to sell some of its capacity. We find that the divestment which achieves the greatest reduction in prices can be several times more effective in reducing prices than a divestment of baseload (or low-cost) plants. We also compare divestments of intermediate size and virtual power plants (VPPs), establishing that VPPs are significantly less effective than the optimal divestment.
Keywords :
power generation economics; power markets; power plants; electricity generation market; power market; virtual power plants; Corporate acquisitions; Costs; Electricity supply industry; Europe; Forward contracts; International collaboration; Monopoly; Power generation; Power markets; Regulators; Antitrust remedies; Virtual Power Plants; contracts; divestments; electricity; market power;
Conference_Titel :
Energy Market, 2009. EEM 2009. 6th International Conference on the European
Conference_Location :
Leuven
Print_ISBN :
978-1-4244-4455-7
DOI :
10.1109/EEM.2009.5207140