EconStor >
Heinrich-Heine-Universität Düsseldorf >
Düsseldorf Institute for Competition Economics (DICE), University of Düsseldorf >
DICE Discussion Paper, Düsseldorf Institute for Competition Economics (DICE) >

Please use this identifier to cite or link to this item:

http://hdl.handle.net/10419/67052
  
Title:Competition in Germany's minute reserve power market: An econometric analysis PDF Logo
Authors:Haucap, Justus
Heimeshoff, Ulrich
Jovanovic, Dragan
Issue Date:2012
Series/Report no.:DICE Discussion Paper 75
Abstract:The German reserve power market was subject to important regulatory changes in recent years. A new market design was created by synchronization and interconnection of the four control areas. In this paper, we analyze whether or not the reforms led to lower prices for minute reserve power (MRP). In contrast to existing papers, we use a unique panel dataset to account for unobserved heterogeneity between the four German regional markets. Moreover, we control for endogeneity by using weather data as instruments for electricity spot market prices. We find that the reforms were jointly successful in decreasing MRP prices leading to substantial cost savings for the transmission system operators.
Subjects:Competition
Frequency Control
Minute Reserve Power
Regulation
Productive Efficiency
Welfare
JEL:C33
C36
L59
L94
ISBN:978-3-86304-074-1
Document Type:Working Paper
Appears in Collections:DICE Discussion Paper, Düsseldorf Institute for Competition Economics (DICE)

Files in This Item:
File Description SizeFormat
730567729.pdf485.24 kBAdobe PDF
No. of Downloads: Counter Stats
Download bibliographical data as: BibTeX
Share on:http://hdl.handle.net/10419/67052

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