Arbeitspapier

Nodal prices, capacity valuation and investments in natural gas markets: Overview and analytical framework

Especially in the short-term, prices in natural gas markets are not exclusively determined by overall supply and demand, but also by the availability of the transport infrastructure. If transportation capacity is scarce, prices may form in (local) residual markets and can differ regionally. If available, storages provide intertemporal arbitrage possibilities which also impact prices. Temporal and regional price differences, in turn, determine the value of storage and transport capacity if either one is scarce. This paper applies an analytical framework for a simple pipeline grid with a storage over two periods to illustrate the interdependencies between prices, scarce capacity and capacity value. The theoretically optimal transportation and storage tariffs are described analytically. The optimal pipeline investment size is shown to be related to marginal storage investment and a function of the discounted and aggregated cost of congestion over the lifetime's asset.

Sprache
Englisch

Erschienen in
Series: EWI Working Paper ; No. 09,02

Klassifikation
Wirtschaft
Energy: Demand and Supply; Prices
Market Structure, Pricing, and Design: Perfect Competition
Regulation and Industrial Policy: General
Other Economic Systems: Productive Enterprises; Factor and Product Markets; Prices; Population
Thema
Natural gas
transport capacity
storage
investment
prices
Gaspreis
Gasleitungstransport
Netzzugang
Transportkapazität
Lager
Investition
Theorie

Ereignis
Geistige Schöpfung
(wer)
Lochner, Stefan
Ereignis
Veröffentlichung
(wer)
Institute of Energy Economics at the University of Cologne (EWI)
(wo)
Köln
(wann)
2009

Handle
Letzte Aktualisierung
10.03.2025, 11:45 MEZ

Datenpartner

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Objekttyp

  • Arbeitspapier

Beteiligte

  • Lochner, Stefan
  • Institute of Energy Economics at the University of Cologne (EWI)

Entstanden

  • 2009

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