Combining Energy Networks

Networks and Spatial Economics - Tập 12 - Trang 377-401 - 2011
Jan Abrell1, Hannes Weigt1
1Dresden University of Technology, Faculty of Business and Economics, Chair of Energy Economics and Public Sector Management, Dresden, Germany

Tóm tắt

Electricity markets depend on upstream energy markets to supply the fuels needed for generation. Since these markets rely on networks, congestion in one can quickly produce changes in another. In this paper we develop a combined partial equilibrium market model which includes the interactions of natural gas and electricity networks. We apply the model to a stylized representation of Europe’s electricity and natural gas markets to illustrate the upstream and downstream feedback effects which are not obvious on first sight. We find that both congestion and loop-flow effects in electricity markets impact prices and quantities in markets located far from the initial cause of the market changes.

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