• A Nodal Pricing Model for the Nordic Electricity Market 

      Bjørndal, Endre; Bjørndal, Mette; Gribkovskaia, Victoria (Discussion paper;43/14, Working paper, 2014-12)
      In the Nordic day-ahead electricity market zonal pricing or market splitting is used for relieving congestion between a predetermined set of bidding areas. This congestion management method represents an aggregation of ...
    • Congestion Management in a Stochastic Dispatch Model for Electricity Markets 

      Bjørndal, Endre; Bjørndal, Mette; Midthun, Kjetil; Zakeri, Golbon (Discussion paper;12/16, Working paper, 2016-08-25)
      We consider an electricity market organized with two settlements: one for a pre-delivery (day-ahead) market and one for real time, where uncertainty regarding production from non-dispatchable energy sources as well as ...
    • Cost efficiency analysis based on the DEA and StoNED models : case of Norwegian electricity distribution companies 

      Cheng, Xiaomei; Bjørndal, Endre; Bjørndal, Mette (Discussion papers;28/14, Working paper, 2014-06)
      Our paper applies data envelopment analysis (DEA) and stochastic non-parametric envelopment of data (StoNED) to measure cost efficiency of electricity distribution companies. The data cover 123 Norwegian electricity ...
    • Finding core allocations for fixed cost games in electricity networks 

      Bjørndal, Endre; Stamtsis, Georgios C.; Erlich, István (Discussion paper, Working paper, 2003)
      We discuss the cost allocation problem faced by a network operator, where the fixed (residual) cost of the network has to be allocated among its users. Usage-based methods, such as the postage stamp rate method and the ...
    • Finding the Right Yardstick: Regulation under Heterogeneous Environments 

      Bjørndal, Endre; Bjørndal, Mette; Cullmann, Astrid; Nieswand, Maria (Discussion paper;4/16, Working paper, 2016-02-25)
      Revenue cap regulation is often combined with systematic benchmarking to reveal the managerial inefficiencies when regulating natural monopolies. One example is the European energy sector, where benchmarking methods are ...
    • Flow-Based Market Coupling in the European Electricity Market – A Comparison of Efficiency and Feasibility 

      Bjørndal, Endre; Bjørndal, Mette; Cai, Hong (Discussion paper;14/18, Working paper, 2018-10-23)
      In May 2015, the Flow-Based Market Coupling (FBMC) model replaced the Available Transfer Capacity (ATC) model in Central Western Europe to determine the power transfers between countries or price areas. The FBMC model aims ...
    • Hybrid Pricing in a Coupled European Power Market with More Wind Power 

      Bjørndal, Endre; Bjørndal, Mette; Cai, Hong; Panos, Evangelos (Discussion paper;28/15, Working paper, 2015-10-28)
      In the European market, the promotion of wind power leads to more network congestion. Zonal pricing (market coupling), which does not take the physical characteristics of transmission into account, is the most commonly ...
    • Lower and upper bounds for linear production 

      Bjørndal, Endre; Jörnsten, Kurt (Discussion paper, Working paper, 2002-11)
      We study a model of a production economy in which every set of agents owns a set of resources, and where they all have access to the same technology. The agents can cooperate by pooling their resources, and the total profit ...
    • Malmquist Productivity Analysis based on StoNED 

      Cheng, Xiaomei; Bjørndal, Endre; Bjørndal, Mette (Discussion paper;25/15, Working paper, 2015-09-24)
      We construct a Malmquist productivity index based on stochastic non-parametric envelopment of data (StoNED) method, and we study how the distributional assumptions in the second StoNED stage affect productivity change ...
    • Market Power Under Nodal and Zonal Congestion Management Techniques 

      Bjørndal, Endre; Bjørndal, Mette; Rud, Linda; Rahimi Alangi, Somayeh (Discussion paper;14/17, Working paper, 2017-11-07)
      Contrary to the common thought that nodal pricing provides more opportunities for a strategic player to exert market power than the zonal model, we show that in the latter one because of the need for re-dispatch or ...
    • Nodal pricing in a coupled electricity market 

      Bjørndal, Endre; Bjørndal, Mette; Cai, Hong (Arbeidsnotat;27/14, Working paper, 2014-06)
      This paper investigates a pricing model for an electricity market with a hybrid congestion management method, i.e. part of the system applies a nodal pricing scheme and the rest applies a zonal pricing scheme. The model ...
    • On the Distributional Assumptions in the StoNED model 

      Cheng, Xiaomei; Andersson, Jonas; Bjørndal, Endre (Discussion paper;24/15, Working paper, 2015-09-17)
      In a recent paper Johnson and Kuosmanen (2011) propose a new, semi-parametric, general cost-frontier model, the stochastic nonparametric envelopment of data (StoNED). The model is semi-parametric in the sense that the ...
    • Optimal Scale in Different Environments – The Case of Norwegian Electricity Distribution Companies 

      Cheng, Xiaomei; Bjørndal, Endre; Bjørndal, Mette (Discussion paper;22/15, Working paper, 2015-09-17)
      We study returns to scale in Norwegian electricity distribution companies. The scale issue of this sector has become an important political question, and it was for instance discussed by the Reiten commission (OED, 2014) ...
    • Pricing wind: A revenue adequate, cost recovering uniform price for electricity markets with intermittent generation 

      Zakeri, Golbon; Pritchard, Geoff; Bjørndal, Mette; Bjørndal, Endre (Discussion paper;15/16, Working paper, 2016-09-06)
      With greater penetration of renewable generation, the uncertainty faced in electricity markets has increased substantially. Conventionally, generators are assigned a pre-dispatch quantity in advance of real time, based on ...
    • Productivity Development for Norwegian Electricity Distribution Companies 2004-2013 

      Cheng, Xiaomei; Bjørndal, Endre; Lien, Gudbrand; Bjørndal, Mette (Discussion paper;27/15, Working paper, 2015-10-07)
      Norwegian distribution companies have been subjected to an incentive regulation scheme from 1997, and the efficiency incentives were further strengthened with the introduction of yardstick regulation in 2007. We examine ...
    • Simulation of congestion management and security constraints in the Nordic electricity market 

      Bjørndal, Endre; Bjørndal, Mette; Gribkovskaia, Victoria (Discussion papers;30/14, Working paper, 2014-06)
      Presently in the Nordic day-ahead market, zonal pricing or market splitting is used for relieving congestion between a predetermined set of price areas. Constraints internal to the price areas are resolved by counter ...
    • Specification of merger gains in the Norwegian electricity distribution industry 

      Saastamoinen, Antti; Bjørndal, Endre; Bjørndal, Mette (Discussion paper;7/16, Working paper, 2016-04-19)
      Electricity distribution often exhibits economies of scale. In Norway, a number of smaller distribution system operators exist and thus there is potential to restructure the industry, possibly through mergers. However, the ...
    • Stochastic Electricity Dispatch: A challenge for market design 

      Bjørndal, Endre; Bjørndal, Mette; Midthun, Kjetil; Tomasgard, Asgeir (Discussion paper;11/16, Working paper, 2016-08-25)
      We consider an electricity market with two sequential market clearings, for instance representing a day-ahead and a real-time market. When the first market is cleared, there is uncertainty with respect to generation and/or ...
    • The Flow-Based Market Coupling Model and the Bidding Zone Configuration 

      Bjørndal, Endre; Bjørndal, Mette; Cai, Hong (Discussion paper;15/18, Working paper, 2018-10-24)
      In May 2015, the Flow-Based Market Coupling (FBMC) model replaced the Available Transfer Capacity (ATC) model in Central Western Europe to determine the power transfer among bidding zones in the day-ahead market. It might ...