Market Power in the Nordic Wholesale Electricity Market: A Survey of the Empirical Evidence

Sven-Olof Fridolfsson and Thomas Tangerås (thomas.tangeras@ifn.se)

No 773, Working Paper Series from Research Institute of Industrial Economics

Abstract: We review the recent empirical research concerning market power on the Nordic wholesale market for electricity, Nord Pool. There is no evidence of blatant and systematic exploitation of system level market power on Nord Pool. However, generation companies seem from time to time able to take advantage of capacity constraints in transmission to wield regional market power. Market power can manifest itself in a number of ways which have so far escaped empirical scrutiny. We discuss investment incentives, vertical integration and buyer power, as well as withholding of base-load (nuclear) capacity.

Keywords: Electricity Markets; Deregulation; Market Power; Hydro Power; Transmission Constraints (search for similar items in EconPapers)
JEL-codes: L13 L94 Q41 (search for similar items in EconPapers)
Pages: 31 pages
Date: 2008-10-22
New Economics Papers: this item is included in nep-com and nep-ene
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Citations: View citations in EconPapers (4)

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Persistent link: https://EconPapers.repec.org/RePEc:hhs:iuiwop:0773

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