Location of Repository

Competition and the single electricity market: Which lessons for Ireland?

By Valeria Di Cosmo and Muireann \uc0. Lynch

Abstract

This paper examines the redesign of the Irish Single Electricity Market in order to comply with the European Target Model for electricity. In particular, this work focuses on the challenges raised by the high concentration in the generation sector which exists in the Irish electricity market. We examine the theoretical and empirical conditions under which forward markets promote competition in the spot and retail markets; in addition, we investigate the impact of concentration in the market on the new capacity payment mechanism. In order to ensure a competitive outcome for consumers, the regulatory authorities should continue to regulate the directed forward contracts made by the dominant firm; moreover, our analysis suggests that the regulator should extend regulation to the price and quantity which the dominant firm bids for holding new reliability options

Topics: ddc:330, Competition, Forward electricity markets, Capacity payments, Single electricity market
Publisher: Dublin: The Economic and Social Research Institute (ESRI)
Year: 2015
OAI identifier: oai:econstor.eu:10419/129418
Provided by: EconStor

Suggested articles

Preview


To submit an update or takedown request for this paper, please submit an Update/Correction/Removal Request.