Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/23154 
Authors: 
Year of Publication: 
2004
Series/Report no.: 
EWI Working Paper No. 04.03
Publisher: 
Institute of Energy Economics at the University of Cologne (EWI), Köln
Abstract: 
This paper quantifies the degree of market power in the German wholesale electricity market. A fundamental model is used to derive competitive marginal cost estimators which are compared with observed electricity prices. Marginal costs are calculated focusing on market fundamentals such as plant capacities, fuel prices, and load structures. In addition, international power exchange and dynamic effects like start-up costs and hydro storage plant dispatch are incorporated. The comparison of marginal costs and prices reveals significant market power in the German electricity market, mainly exhibited during peak periods. Producer surplus is significantly increased by market power.
Subjects: 
Market Power
Electricity Markets
Energy Modelling
JEL: 
C61
D43
L13
L94
Document Type: 
Working Paper

Files in This Item:
File
Size
416.26 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.