COVID-19 lockdown and market power in the Italian electricity market

Simona Bigerna, Carlo Andrea Bollino (), Maria Chiara D'Errico and Paolo Polinori

Energy Policy, 2022, vol. 161, issue C

Abstract: The Italian electricity market was characterized by a remarkable decrease in demand during the COVID-19 lockdown (10 March to 2 June 2020). There were also negative peaks of over 50% and record low prices of about 20 Euro/MW. This paper aims to investigate the exercise of market power in the Italian power exchange during the pandemic, explicitly considering transmission line congestion, and disentangling the measure of the unilateral market power from congestion rent and re-dispatching costs.

Keywords: Electricity market; COVID-19 pandemic lockdown; Market power; Zonal lerner index; Mark-up; Mark-down (search for similar items in EconPapers)
JEL-codes: D22 L13 Q41 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:enepol:v:161:y:2022:i:c:s0301421521005656

DOI: 10.1016/j.enpol.2021.112700

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