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Abuse of dominance in intraday coupled electricity markets/ Impact onmarket integration of renewables

Alina Podlesnaya ()
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Alina Podlesnaya: Department of Economics, Lomonosov Moscow State University

No 40, Working Papers from Moscow State University, Faculty of Economics

Abstract: Electricity market coupling aimed at reducing electricity price differential by optimizing cross-border capacity allocation is the main mechanism of the EU electricity market integration. The paper considers the problem of the abuse of dominance in intraday coupled electricity markets and the consequences of this abuse for the market integration of renewables. The paper found that the abuse of dominance in coupled markets could occur when the owner of essential facilities (i.e. power exchange) prohibits his competitors access to the infrastructure necessary for the intraday coupled auctions (i.e. shared order book). Since intraday coupled auctions combine two main instruments of market integration of renewables, i.e. close to real time trading and optimization of cross-border capacity allocation, distortion of competition in intraday coupled electricity markets can prevent efficient market integration of renewables and the greening of the power industry.

Keywords: market coupling; intraday electricity market; renewables; abuse of dominance (search for similar items in EconPapers)
JEL-codes: K21 L40 L41 Q20 (search for similar items in EconPapers)
Pages: 16 pages
Date: 2022-04
New Economics Papers: this item is included in nep-com, nep-ene, nep-law, nep-mst and nep-reg
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