Decoding restricted participation in sequential electricity markets

Arbeitspapier

Restricted participation in sequential markets may cause high price volatility and welfare losses. In this paper we therefore analyze the drivers of restricted participation in the German intraday auctin which is a short-term electricity market with quarter-hourly products. Applying a fundamental electricity market model with 15-minute temporal resolution, we identify the lack of sub-hourly market coupling being the most relevant driver and restricted participation. We derive a proxy for price volatility and find that full market coupling may trigger quarter-hourly price valatility to decrease by a factor close to four.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: EWI Working Paper ; No. 17/05

Classification and Topics

• Classification: Wirtschaft ; Estimation: General ; Model Construction and Estimation ; Auctions ; Market Design ; Electric Utilities ; Renewable Resources and Conservation: Demand and Supply; Prices ; Energy: Demand and Supply; Prices
• Subject: sequential electricity markets ; short-term market dynamics ; electricity market interaction ; short-term price formation ; restricted market participation ; price volatility

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Knaut, Andreas ; Paschmann, Martin Heinrich
• Event: Veröffentlichung
• (who): Institute of Energy Economics at the University of Cologne (EWI)
• (where): Köln
• (when): 2017

Further information

• Handle: http://hdl.handle.net/10419/172835
• Last update: 10.03.2025, 11:43 AM CET