Properties of Electricity Prices and the Drivers of Interconnector Revenue

@inproceedings{Parail2010PropertiesOE,
  title={Properties of Electricity Prices and the Drivers of Interconnector Revenue},
  author={Vladimir Parail},
  year={2010}
}
This paper examines the drivers behind revenues of merchant electricity interconnectors and the effect of arbitrage trading over interconnectors on the level and volatility of electricity prices in the connected markets. It sets out a simulation methodology that allows the stochastic and deterministic properties of prices, as well as most model parameters, to be varied freely. The effect of electricity flows over interconnectors on prices and thus on interconnector revenues is modelled… CONTINUE READING