In this paper we analyse the equilibrium structure for a particular type of electricity market. We consider a market with two generators offering electricity into a pool. Generators are centrally dispatched, with cheapest offers used first. The pool price is determined as the highest-priced...

In electricity wholesale markets, generators often sign long term contracts with purchasers of power in order to hedge risks. In this paper, we consider a market where demand is uncertain, but can be represented as a function of price together with a random shock. Each generator offers a smooth...