Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/123461 
Year of Publication: 
2014
Series/Report no.: 
WWZ Discussion Paper No. 2014/05
Publisher: 
University of Basel, Center of Business and Economics (WWZ), Basel
Abstract: 
Natural gas plays an important role in the future development of electricity markets as it is the least emission intensive fossil generation option while additionally providing the needed flexibility in plant operation to deal with intermittent renewable generation. As both the electricity and the natural gas market rely on networks, congestion on one market may lead to changes on another. In addition, investments in one market have an impact in the other and may even become substitutes for one another. The objective of this paper is to develop a dynamic model representation of coupled natural gas and electricity network markets to test the potential interaction with respect to investments. The model is tested under simplified conditions as well as for a stylized European network setting. The results indicate that there is a potential for investment-substitution and significant market interactions that warrants the application of coupled models especially with regard to simulations of long term system developments.
Subjects: 
Electricity network
Natural gas network
Europe
MCP
JEL: 
L94
L95
Q4
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

Files in This Item:
File
Size
919.66 kB





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