Dynamics in Forward and Spot Electricity Markets

• Published in: IEEE transactions on power systems Vol. 24; no. 2; pp. 582 - 591
• Main Authors: Sanchez, J.J., Bunn, D.W., Centeno, E., Barquin, J.
• Format: Journal Article
• Language: English
• Published: New York IEEE 01.05.2009; The Institute of Electrical and Electronics Engineers, Inc. (IEEE)
• Subjects: Computational modeling; Contracts; Dynamical systems; Dynamics; Econometrics; Economic models; Electric power generation; Electricity; Electricity markets; Electricity supply industry; Forward contracts; market power; Markets; Mathematical analysis; Power generation; Power markets; Power system modeling; Risk management; Strategy; Studies; trading

This paper provides new results that cast doubt on the conventional assumption that introducing voluntary forward markets will mitigate the market power of electricity generating companies by encouraging them to contract forward. We provide complementary insights by developing an agent-based simulat...