Ramsey Pricing in a Congested Network with Market Power in Generation: A Numerical Illustration for Belgium

Guido Pepermans () and Bert Willems

Energy, Transport and Environment Working Papers Series from KU Leuven, Department of Economics - Research Group Energy, Transport and Environment

Abstract: Abstract: This paper derives the socially optimal transmission prices in a congested electricity network when there is imperfect competition in generation, and when the budget constraint of the network operator is binding. The results which we derive are a generalization of the standard Ramsey prices and also of the locational marginal prices (LMP). The model is illustrated with a numerical model based on the Belgian electricity data.

Keywords: Regulation; Transmission; Electricity; Cournot; Numerical model; Security constraints; MPEC; loadflow; Belgium (search for similar items in EconPapers)
JEL-codes: D42 L13 L43 L94 (search for similar items in EconPapers)
Pages: 38 pages
Date: 2004-08
New Economics Papers: this item is included in nep-com
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
https://lirias.kuleuven.be/bitstream/123456789/199861/2/EIWP04-03.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ete:etewps:ete0408

Access Statistics for this paper

More papers in Energy, Transport and Environment Working Papers Series from KU Leuven, Department of Economics - Research Group Energy, Transport and Environment Contact information at EDIRC.
Bibliographic data for series maintained by library EBIB ().