Vertical separation vs. independent downstream entry in an electricity network: experimental insights

Ciarreta, A., Fatas, E., Georgantzis, N. and Gutiérrez-Hita, C. (2017) Vertical separation vs. independent downstream entry in an electricity network: experimental insights. Electric Power Systems Research, 143. pp. 728-738. ISSN 0378-7796 doi: 10.1016/j.epsr.2016.10.034

Abstract/Summary

We analyze a realistic simulation of a complex electricity network. We obtain the data with a series of experimental sessions designed to closely replicate the Spanish Electricity Market. In the experiments reported here we compare the status quo with two alternative regulatory market structures. In one of them, labeled as vertical separation, we impose that power generating firms and electricity distributors operate as independent business groups. In the second, we study the effect of entry by independent end-suppliers. Both alternative scenarios dominate the status quo in terms of market efficiency, but the latter of them dominates the former.

Item Type	Article
URI	https://reading-clone.eprints-hosting.org/id/eprint/67972
Identification Number/DOI	10.1016/j.epsr.2016.10.034
Refereed	Yes
Divisions	Life Sciences > School of Agriculture, Policy and Development > Department of Agri-Food Economics & Marketing
Publisher	Elsevier
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