Market Power in Deregulated Power System

2018 ◽  
pp. 480-510 ◽  
Author(s):  
Mohammad Quadeer Fahad ◽  
Mohd Tauseef Khan ◽  
Anwar Shahzad Siddiqui
Keyword(s):  
Power System ◽  
Market Power ◽  
Power Industry ◽  
Competitive Market ◽  
Power Markets ◽  
Total Output ◽  
Wholesale Market ◽  
Private Companies ◽  
Deregulated Power System ◽  
And Control

In today's competitive market, deregulation of power industry is inevitable. The aim of deregulating the power markets is to bring competition into them and thereby make them more economically efficient. In an economically efficient market, no consumer or producer has the ability to impact on prices by itself or by collaborating with any other participant. However, the electricity wholesale market is not a perfect market and the potential for market power exploitation is an issue. Sometimes private companies collaborate with each other to get more profit, driving the prices to a higher level and thus acquiring a market power which is an anti-competitive practice. Thus, market power is the capability of a seller or a group of sellers to profitably maintain the prices above a competitive level and control the total output for a noteworthy period of time.

scholarly journals MARKET POWER IN POWER MARKETS: THE CASE OF FRENCH WHOLESALE ELECTRICITY MARKET

2015 ◽  
Vol 21 (2) ◽  
Author(s):  
SOPHIE MERITET ◽  
THAO PHAM
Keyword(s):  
Literature Review ◽  
Market Power ◽  
Electricity Market ◽  
Peak Load ◽  
Power Market ◽  
Power Markets ◽  
Wholesale Market ◽  
Future Evolution ◽  
Data Framework ◽  
Wholesale Electricity Market

<p class="ESRBODY">The French wholesale market is set to expand in the next few years under European pressures and national decisions. In this paper, we investigate the performance of the French wholesale power market to examine whether or not the equilibrium outcomes are competitive. After a literature review on the different existing models, an extension of the Bresnahan - Lau (1982) method in panel data framework is employed with hourly dataset during 2009-2012 on the French wholesale market. The model-based results suggest that though market power is found statistically significant in several peak-load hours, it stays at very low level. On average, no market power is exercised over the examined period. These results correspond with the extremely regulated wholesale power market in France. It is of high interest given the future evolution of the French wholesale market which will be among the biggest in Europe in 2016 after the end of regulated tariffs for all firms.</p>

scholarly journals Overcapacity Risk of China’s Coal Power Industry: A Comprehensive Assessment and Driving Factors

2021 ◽  
Vol 13 (3) ◽  
pp. 1426
Author(s):  
Delu Wang ◽  
Xun Xue ◽  
Yadong Wang
Keyword(s):  
Evaluation Model ◽  
Supply And Demand ◽  
Correlation Effect ◽  
Power Industry ◽  
Environmental Benefits ◽  
Risk Level ◽  
Correlation Based Feature Selection ◽  
Coal Power ◽  
And Control ◽  
The Impact

The comprehensive and accurate monitoring of coal power overcapacity is the key link and an important foundation for the prevention and control of overcapacity. The previous research fails to fully consider the impact of the industry correlation effect; making it difficult to reflect the state of overcapacity accurately. In this paper; we comprehensively consider the fundamentals; supply; demand; economic and environmental performance of the coal power industry and its upstream; downstream; competitive; and complementary industries to construct an index system for assessing coal power overcapacity risk. Besides; a new evaluation model based on a correlation-based feature selection-association rules-data envelopment analysis (CFS-ARs-DEA) integrated algorithm is proposed by using a data-driven model. The results show that from 2008 to 2017; the risk of coal power overcapacity in China presented a cyclical feature of “decline-rise-decline”, and the risk level has remained high in recent years. In addition to the impact of supply and demand; the environmental benefits and fundamentals of related industries also have a significant impact on coal power overcapacity. Therefore; it is necessary to monitor and govern coal power overcapacity from the overall perspective of the industrial network, and coordinate the advancement of environmental protection and overcapacity control.

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