 Implicit auctioning on the Kontek Cable: Third time lucky?Energy Economics, 2011, vol. 33, issue 3, 413-418 Abstract: Implicit auctioning in Europe is about eliminating cross-border trade inefficiencies by internalizing cross-border trade into the day-ahead auction procedures of the Power Exchanges that are already organizing trade nationally. On the Kontek Cable, implicit auctioning has first been implemented with "no coupling" between the relevant Power Exchanges, followed by a "volume coupling" implementation, and finally a "one way price coupling" implementation that is still operational today. The main contribution of this paper is to compare the theoretical properties of these three implementations and to analyze their performance empirically. We find that the third implementation is significantly outperforming the previous two implementations, but in this third implementation stakeholders partly abandoned the "volume coupling" approach they initially believed to be a viable alternative and institutionally easier to implement. Keywords: Electricity; markets; Implicit; auctions; Cross-border; trade (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:eneeco:v:33:y:2011:i:3:p:413-418 Access Statistics for this article Energy Economics is currently edited by R. S. J. Tol, Beng Ang, Lance Bachmeier, Perry Sadorsky, Ugur Soytas and J. P. Weyant More articles in Energy Economics from Elsevier |
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