EPSR_CiarretaEtAl.pdf (798.65 kB)
Vertical separation vs. independent downstream entry in an electricity network: Experimental insights
journal contributionposted on 2019-03-22, 14:56 authored by Aitor Ciarreta, Enrique Fatas, Nikolaos Georgantzis, Carlos Gutierrez-Hita
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.
Authors thank the NET Institute (www.NETinst.org) for financial support. Aitor Ciarreta would like to acknowledge financial support from Ministerio de Economía y Competitividad (ECO2015-64467-R, MINECO/FEDER) and Gobierno Vasco (IT783-13). Carlos Gutiérrez-Hita would like to acknowledge financial support from Ministerio de Economía y Competitividad through the project “Strategic management on complex systems with multiplicity of agents” (Ref: MTM2014-54199-P.).
- Business and Economics
Published inElectric Power Systems Research
Pages728 - 738
CitationCIARRETA, A. ... et al, 2017. Vertical separation vs. independent downstream entry in an electricity network: Experimental insights. Electric Power Systems Research, 143, pp.728-738.
Publisher© Elsevier BV
- AM (Accepted Manuscript)
Publisher statementThis work is made available according to the conditions of the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International (CC BY-NC-ND 4.0) licence. Full details of this licence are available at: https://creativecommons.org/licenses/by-nc-nd/4.0/
NotesThis paper was published in the journal Electric Power Systems Research and the definitive published version is available at https://doi.org/10.1016/j.epsr.2016.10.034.