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Interconnections and market integration in the Irish Single Electricity Market

Citation

Nepal, R and Jamasb, T, Interconnections and market integration in the Irish Single Electricity Market, Energy Policy, 51 pp. 425-434. ISSN 0301-4215 (2012) [Refereed Article]

Copyright Statement

Copyright 2012 Elsevier Ltd. All rights reserved.

Official URL: https://www.sciencedirect.com/science/article/pii/...

DOI: doi:10.1016/j.enpol.2012.08.047

Abstract

Interconnections can be an effective way to increase competition and improve market integration in concentrated wholesale electricity markets with limited number of participants. This paper examines the potential for interconnections and increasing market integration in the Irish Single Electricity Market (SEM). We use a time-varying Kalman filter technique to assess the degree of market integration between SEM and other large, mature and interconnected wholesale electricity markets in Europe including Great Britain (GB). The results indicate no market integration between SEM and other European markets except for Elspot and GB. We show that the current state of market integration between SEM and GB is just 17% indicating potential to improve market integration via increased interconnector capacity. The results indicate that liquidity of wholesale markets might be a crucial factor in the market integration process while our results remain inconclusive in determining whether increased trade of renewables can improve market integration.

Item Details

Item Type:Refereed Article
Keywords:market integration, liquidity, competition
Research Division:Economics
Research Group:Applied economics
Research Field:Industry economics and industrial organisation
Objective Division:Economic Framework
Objective Group:Microeconomics
Objective Field:Industrial organisations
UTAS Author:Nepal, R (Dr Rabindra Nepal)
ID Code:129883
Year Published:2012
Web of Science® Times Cited:13
Deposited By:TSBE
Deposited On:2018-12-20
Last Modified:2019-01-21
Downloads:0

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