Capacity constraints on transmissions of electricity are raising an increasing policy concern as electricity markets … this paper is to highlight the impact of transmission capacity constraints and transmission costs on electricity market …

Zonal pricing electricity markets operate sequentially. First, the suppliers compete in a spot market. Second, to … introduce long term investment distortions. …

Electricity markets are becoming more integrated around the world. However, the knowledge of the effects of different … auction formats on suppliers' strategies in the presence of transmission constraints and transmission costs is still very … constraints and transmission costs. When the transmission capacity is binding, the discriminatory price auction could outperform …

A capacity mechanism next to the energy-only market provides necessary investment incentives that spot markets lack …. The adequate capacity mix can only be achieved by accounting for the current transition phase to electricity generation …

production capacity. In a zonal pricing electricity market, the one proposed by the European Commission to integrate the European … electricity markets, I analyze the effects that investments in transmission and production capacity have on consumer welfare and … suppliers' profits. In the specific setting of this paper, I show that when the competition is perfect, an investment in …

Zonal pricing electricity markets operate sequentially. First, the suppliers compete in a spot market. Second, to … characterize the equilibrium in a zonal pricing electricity market when the competition is imperfect by using four different … congestion in the transmission line, and that could introduce long term investment distortions …

Electricity markets are becoming more integrated around the world. However, the knowledge of the effects of different … auction formats on suppliers' strategies in the presence of transmission constraints and transmission costs is still very … constraints and transmission costs. When the transmission capacity is binding, the discriminatory price auction could outperform …

We analyse how the market design influences the bidding behaviour in multi-unit auctions, such as wholesale electricity …