Electricity Futures : Inventories and Price Relationships at Nord Pool

@inproceedings{Gjolberg2001ElectricityF,
  title={Electricity Futures : Inventories and Price Relationships at Nord Pool},
  author={Ole Gjolberg and Thore Johnsen},
  year={2001}
}
Electricity is a non-storable commodity for consumers, while hydropower producers may store future electricity as water in their reservoirs. Consequently, there is an asymmetry between producers’ and consumers’ possibilities of spot-futures arbitrage. Furthermore, marginal warehousing costs in hydro based electricity production are zero as long as water reservoirs are not full, jumping to the prevailing spot price in the case that dams are filled up and water is running over the edge without… CONTINUE READING

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