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Mitigating the risk of market power abuse in electricity sector restructuring: Evidence from Indonesia

Dzikri Firmansyah Hakam

Utilities Policy, 2019, vol. 56, issue C, 181-191

Abstract: This research considers the optimal configuration of successor generation companies in electricity market restructuring. The purpose of the study is to analyse the strategic behaviour of generating firms and optimise the electricity market structure under a generation constraint, transmission congestion, and DC load flow. The models applied here are perfect competition and Cournot competition applied to the Indonesia power system with the Residual Supply Index (RSI) as a tool for the risk of market power abuse. The key finding is that the characteristics of a power system, subject to generation and transmission constraints, strongly influence the optimal market structure.

Keywords: Market power; Indonesia power system; Residual supply index (search for similar items in EconPapers)
JEL-codes: C61 D41 D47 D60 (search for similar items in EconPapers)
Date: 2019
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Handle: RePEc:eee:juipol:v:56:y:2019:i:c:p:181-191