 A synthetic bids simulation for power market deregulationAitor Ciarreta, Anas Damoun and Maria Paz Espinosa Energy Policy, 2024, vol. 192, issue C Abstract: This paper presents a procedure to assess the impact of a potential liberalisation process of electricity generation before its implementation. We simulate the functioning of a hypothetical day-ahead market in a country where it does not yet exist. Generators’ counterfactual bidding behavior is obtained by matching generating units to others in countries with a day-ahead market, taking into account differences in taxation, environmental policy, and market power. We apply this procedure to simulate an electricity pool in Morocco under alternative scenarios of counterfactual bids. We conclude that generation costs would be lower in any of the scenarios compared to the factual, thereby confirming efficiency gains from restructuring the power industry. We also highlight that market clearing prices would be significantly affected by the existing grid interconnection with Spain. Keywords: Electricity market liberalisation; Morocco power sector; Day-ahead market; Electricity auction bidding behavior; Power market simulation; Agent-based simulation (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:enepol:v:192:y:2024:i:c:s0301421524002222 DOI: 10.1016/j.enpol.2024.114202 Access Statistics for this article Energy Policy is currently edited by N. France More articles in Energy Policy from Elsevier |
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