Liberalisation of Central European Electricity Markets

Download or read book Liberalisation of Central European Electricity Markets written by Rafael Parisi and published by . This book was released on 2013 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper examines the current situation in German, Austrian, and Swiss electricity markets by describing market structures and major trends, such as renewable energies and nuclear power phase-out. The principle objective is to provide the reader with a clear overview about these national markets. This will help to gain a better understanding of potential interdependencies in European electricity markets, which are becoming more pronounced with advancing market integration. The method applied is secondary research. Firstly, the paper depicts how the three national markets are embedded into the larger European framework. Secondly, all three markets are analysed for their national structure. This includes the relevant legislation, national energy policy, regulators, transmission system operators, electricity exchanges, and further players. Thirdly, electricity market trends such as renewable energies and nuclear power phase-out are analysed. Fourthly, market integration as a core trend shaping future Central European electricity markets is explored. Different congestion management methods are briefly explained and recent developments in regional electricity markets are studied. Last but not least, there is an outlook about various future challenges, such as capacity markets, smart grids, and vehicle to grid technology. The main findings are that German, Austrian, and Swiss national electricity markets feature similar institutional structures on the one hand but different levels of development on the other. Germany clearly is the most advanced market regarding financial electricity products traded on its exchange but also concerning technical implementation of market coupling. Switzerland with no tradable electricity derivatives and no implicit capacity auction method in place is lagging behind. The paper also finds that national solutions for present and future challenges must account for implications on other electricity market.