The European electricity market design is based on zonal markets with uniform prices. Locational price signals within … distortions of the electricity market, both in the short- and in the long-term.In this paper, we study these distortions with a … and investment model of the European electricity system and gradually restrict the allowed expansion of the transmission …

The economics of electricity is shaped by its physics. A well know example is the non-storability of electricity that … causes its price to fluctuate widely. More generally, physical constraints cause electricity to be a heterogeneous good along … commonly used cost indicators such as "levelized electricity costs" and "grid parity". Heterogeneity is relevant for all …

We evaluate how increasing wind generation affects wholesale electricity prices, balancing payments and the cost of … subsidies using the Irish Single Electricity Market (SEM) as a test system, with hourly data from 1 January 2008 to 28 August … electricity price more than it increases constraint payments, even when storage is on outage. The effect of wind remains positive …