Inflow Uncertainty in Hydropower Markets |
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| Authors: | Petter Vegard Hansen |
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| Institution: | Point Carbon, N-0130 Oslo, Norway
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| Abstract: | We analyse the effects of uncertainty on market performance in hydropower systems under alternative assumptions about market structure. Uncertainty creates distinct possibilities for exercising market power that cannot be captured in deterministic models. The qualitative and quantitative features of these possibilities depend on the characteristics of residual demand facing individual firms, which again depends on consumer preferences and generation and transmission technologies. |
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| Keywords: | Electricity thermal power demand functions monopoly duopoly |
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