wholesale

Market Power and Incentive-Based Capacity Payment Mechanisms

Capacity markets provide guaranteed payments to electricity generation unit owners for having the firm capacity to produce electricity. Historically, these markets are plagued by the weak incentives they provide for plants to be available during …

Market Power in a Hydro-Dominated Wholesale Electricity Market

Concerns about market power have led to regulatory constraints on the price-setting process in nearly all wholesale electricity markets around the world. We study the conditions that led to the exercise of market power in the Colombian wholesale …

Diagnosing the Causes of the Recent El Niño Event and Recommendations for Reform

In this report we identify the key drivers of observed market outcomes in the Colombian electricity supply industry during the fourth quarter of 2015 and first quarter of 2016, the time period covered by the most recent El Niño Event. We analyze how …

How Do Firms Exercise Unilateral Market Power? Empirical Evidence from a Bid-Based Wholesale Electricity Market

Book Review of "The Economics of Electricity Markets: Theory and Policy"

This book provides a concise description of the institutions that govern competitive electricity markets. The editors, Pippo Ranci and Guido Cervigni, together with their four contributors, have witnessed the development of electricity markets in …