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dc.contributor.authorBjørndal, Mette
dc.contributor.authorJörnsten, Kurt
dc.date.accessioned2006-07-16T17:34:44Z
dc.date.available2006-07-16T17:34:44Z
dc.date.issued1999
dc.identifier.issn1500-4066
dc.identifier.urihttp://hdl.handle.net/11250/163921
dc.description.abstractIn the deregulated Norwegian electricity market a zonal transmission pricing system is used to cope with network capacity problems. In this paper we will illustrate some of the problems that the zonal pricing system, as implemented in Norway, has. With the use of small network examples we illustrate the difficulties involved in defining the zones, the redistribution effects of the surplus that a zonal pricing system has, as well as the conflicting interests concerning zone boundaries that are present among the various market participant. We also show that a zone allocation mechanism based on nodal prices does not necessarily lead to a zone system with maximal social surplus. Finally, we formulate an optimization model that when solved yields the zone system that maximizes social surplus given a pre-specification of the number of zones to be used.en
dc.format.extent237089 bytes
dc.format.mimetypeapplication/pdf
dc.language.isoengen
dc.publisherNorwegian School of Economics and Business Administration. Department of Finance and Management Scienceen
dc.relation.ispartofseriesDiscussion paperen
dc.relation.ispartofseries1999:11en
dc.titleZonal pricing in a deregulated electricity marketen
dc.typeWorking paperen


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