Real-time Pricing in Power Markets: Who Gains?

Anette Boom, Sebastian Schwenen

Publikation: KonferencebidragPaperForskningpeer review

Resumé

We examine welfare eects of real-time pricing in electricity markets. Before stochastic energy demand is known, competitive retailers contract with nal consumers who exogenously do not have real-time meters. After demand is realized, two electricity generators compete in a uniform price auction to satisfy demand from retailers acting on behalf of subscribed customers and from consumers with real-time meters. Increasing the number of consumers on real-time pricing does not always increase welfare since risk-averse consumers dislike uncertain and high prices arising through market power. In the Bertrand
case, welfare is the same with all or no consumers on smart meters.
OriginalsprogEngelsk
Publikationsdato2011
Antal sider38
StatusUdgivet - 2011
BegivenhedThe 10th Annual International Industrial Organization Conference. IIOC 2012 - George Mason University School of Law, Arlington, Virginia, USA
Varighed: 16 mar. 201218 mar. 2012
Konferencens nummer: 10
http://editorialexpress.com/conference/IIOC2012/program/IIOC2012.html

Konference

KonferenceThe 10th Annual International Industrial Organization Conference. IIOC 2012
Nummer10
LokationGeorge Mason University School of Law
LandUSA
ByArlington, Virginia
Periode16/03/201218/03/2012
Internetadresse

Emneord

  • Electricity
  • Real-time Pricing
  • Market Power
  • Efficiency

Citer dette

Boom, A., & Schwenen, S. (2011). Real-time Pricing in Power Markets: Who Gains?. Afhandling præsenteret på The 10th Annual International Industrial Organization Conference. IIOC 2012, Arlington, Virginia, USA.
Boom, Anette ; Schwenen, Sebastian. / Real-time Pricing in Power Markets : Who Gains?. Afhandling præsenteret på The 10th Annual International Industrial Organization Conference. IIOC 2012, Arlington, Virginia, USA.38 s.
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title = "Real-time Pricing in Power Markets: Who Gains?",
abstract = "We examine welfare eects of real-time pricing in electricity markets. Before stochastic energy demand is known, competitive retailers contract with nal consumers who exogenously do not have real-time meters. After demand is realized, two electricity generators compete in a uniform price auction to satisfy demand from retailers acting on behalf of subscribed customers and from consumers with real-time meters. Increasing the number of consumers on real-time pricing does not always increase welfare since risk-averse consumers dislike uncertain and high prices arising through market power. In the Bertrandcase, welfare is the same with all or no consumers on smart meters.",
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author = "Anette Boom and Sebastian Schwenen",
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Boom, A & Schwenen, S 2011, 'Real-time Pricing in Power Markets: Who Gains?' Paper fremlagt ved The 10th Annual International Industrial Organization Conference. IIOC 2012, Arlington, Virginia, USA, 16/03/2012 - 18/03/2012, .

Real-time Pricing in Power Markets : Who Gains? / Boom, Anette; Schwenen, Sebastian.

2011. Afhandling præsenteret på The 10th Annual International Industrial Organization Conference. IIOC 2012, Arlington, Virginia, USA.

Publikation: KonferencebidragPaperForskningpeer review

TY - CONF

T1 - Real-time Pricing in Power Markets

T2 - Who Gains?

AU - Boom, Anette

AU - Schwenen, Sebastian

PY - 2011

Y1 - 2011

N2 - We examine welfare eects of real-time pricing in electricity markets. Before stochastic energy demand is known, competitive retailers contract with nal consumers who exogenously do not have real-time meters. After demand is realized, two electricity generators compete in a uniform price auction to satisfy demand from retailers acting on behalf of subscribed customers and from consumers with real-time meters. Increasing the number of consumers on real-time pricing does not always increase welfare since risk-averse consumers dislike uncertain and high prices arising through market power. In the Bertrandcase, welfare is the same with all or no consumers on smart meters.

AB - We examine welfare eects of real-time pricing in electricity markets. Before stochastic energy demand is known, competitive retailers contract with nal consumers who exogenously do not have real-time meters. After demand is realized, two electricity generators compete in a uniform price auction to satisfy demand from retailers acting on behalf of subscribed customers and from consumers with real-time meters. Increasing the number of consumers on real-time pricing does not always increase welfare since risk-averse consumers dislike uncertain and high prices arising through market power. In the Bertrandcase, welfare is the same with all or no consumers on smart meters.

KW - Electricity

KW - Real-time Pricing

KW - Market Power

KW - Efficiency

M3 - Paper

ER -

Boom A, Schwenen S. Real-time Pricing in Power Markets: Who Gains?. 2011. Afhandling præsenteret på The 10th Annual International Industrial Organization Conference. IIOC 2012, Arlington, Virginia, USA.