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dc.contributor.authorSchill, Wolf-Peteren_US
dc.contributor.authorKemfert, Claudiaen_US
dc.date.accessioned2009-11-18en_US
dc.date.accessioned2010-02-04T13:06:20Z-
dc.date.available2010-02-04T13:06:20Z-
dc.date.issued2009en_US
dc.identifier.urihttp://hdl.handle.net/10419/29771-
dc.description.abstractIn this paper, we develop the game-theoretic electricity market model ElStorM that includes the possibility of strategic electricity storage. We apply the model to the German electricity market and analyze different realistic and counterfactual cases of strategic and non-strategic pumped hydro storage utilization by different players. We find that the utilization of storage capacities depends on the operator and its ability to exert market power both regarding storage and conventional generation capacities. The distribution of storage capacities among players also matters. A general finding is that strategic operators tend to under-utilize their storage capacities. This affects generation patterns of conventional technologies and market outcomes. Strategic under-utilization of storage capacities might also diminish their potential for renewable energy integration. Accordingly, economic regulation of existing and future storage capacities may be necessary, depending on policy objectives. We also find that the introduction of electricity storage generally increases overall welfare, while outcomes vary between different cases. Strategic storage utilization decreases consumer rent compared to non-strategic storage utilization. However, this effect is less pronounced if storage capacities are distributed among several players.en_US
dc.language.isoengen_US
dc.publisherDeutsches Institut für Wirtschaftsforschung (DIW) Berlinen_US
dc.relation.ispartofseriesDiscussion papers // German Institute for Economic Research 947en_US
dc.subject.jelQ40en_US
dc.subject.jelQ41en_US
dc.subject.jelL13en_US
dc.subject.jelD43en_US
dc.subject.ddc330en_US
dc.subject.keywordElectricity market modelingen_US
dc.subject.keywordpumped hydro storageen_US
dc.subject.keywordstrategic storageen_US
dc.subject.keywordoligopolyen_US
dc.subject.keywordmarket poweren_US
dc.subject.keywordGermanyen_US
dc.subject.keywordElStorMen_US
dc.subject.stwElektrizitätswirtschaften_US
dc.subject.stwWasserkraftwerken_US
dc.subject.stwBetriebliche Lagerhaltungen_US
dc.subject.stwKapazitätsplanungen_US
dc.subject.stwSpieltheorieen_US
dc.subject.stwOligopolen_US
dc.subject.stwMarktmachten_US
dc.subject.stwWohlfahrtseffekten_US
dc.subject.stwTheorieen_US
dc.subject.stwDeutschlanden_US
dc.titleThe effect of market power on electricity storage utilization: the case of pumped hydro storage in Germanyen_US
dc.typeWorking Paperen_US
dc.identifier.ppn613037332en_US
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungen-
Appears in Collections:Publikationen von Forscherinnen und Forschern des DIW
DIW-Diskussionspapiere

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