Scandinavian Working Papers in Economics

CERE Working Papers,
CERE - the Center for Environmental and Resource Economics

No 2019:5: Intermittency and Pricing Flexibility in Electricity Markets

Jurate Jaraite (), Andrius Kazukauskas , Runar Brännlund , Chandra Kiran and Bengt Kriström
Additional contact information
Jurate Jaraite: CERE - the Center for Environmental and Resource Economics
Andrius Kazukauskas: CERE - the Center for Environmental and Resource Economics
Runar Brännlund: CERE - the Center for Environmental and Resource Economics, Postal: Biblioteksgränd 6
Chandra Kiran: CERE - the Center for Environmental and Resource Economics
Bengt Kriström: CERE - the Center for Environmental and Resource Economics

Abstract: How can increasing intermittent power generation in the Swedish electricity system be managed in a more market-oriented and cost-efficient way? We argue that market mechanisms are the most natural means for obtaining the needed flexibility in electricity systems. We believe that a complete ex post assessment of the Swedish wholesale and balancing market functioning is crucial to determine the effectiveness of these markets in attaining their major objectives. This report identifies knowledge gaps and suggests the most relevant ex post research directions and questions for analysing the Swedish electricity markets in relation to intermittency and pricing flexibility.

Keywords: electricity markets; intermittency; Sweden; wind power

JEL-codes: Q41; Q42; Q48

93 pages, March 29, 2019

Note: This report will be also published at https://www.energiforsk.se/.

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