Combining Energy Networks

Jan Abrell and Hannes Weigt

MPRA Paper from University Library of Munich, Germany

Abstract: Electricity markets rely on other upstream energy markets like oil, gas, and coal to provide the necessary fuel for generation. As both the electricity market and those upstream markets rely on networks, congestion on one market may lead to changes on another. In this paper we analyze the interaction of the natural gas network with the electricity network applying a partial equilibrium approach. The model is applied to a stylized representation of the European energy markets. We apply the model to two cases: first the impact of a supply reduction of natural gas on both markets by cutting imports from Russia, and second, the impact of the introduction of an emission restriction on electricity generation. Since natural gas can be an input for electricity generation, gas price level changes alter the generation dispatch. However, the network character of both markets leads to further effects that are not obvious on first sight. Congestion between markets and particular effects due to loop flows in electricity markets can lead to price and quantity effects in markets far away from the initial cause of market changes.

Keywords: Electricity network; Natural gas network; Europe; MCP (search for similar items in EconPapers)
JEL-codes: L94 L95 (search for similar items in EconPapers)
Date: 2010-02
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
https://mpra.ub.uni-muenchen.de/65504/1/MPRA_paper_65504.pdf original version (application/pdf)

Related works:
Working Paper: Combining Energy Networks (2016)
Journal Article: Combining Energy Networks (2012)
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:pra:mprapa:65504

Access Statistics for this paper

More papers in MPRA Paper from University Library of Munich, Germany Ludwigstraße 33, D-80539 Munich, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Joachim Winter ().