Finnish Environment Institute | Suomen ympäristökeskus | Finlands miljöcentral

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Hydropower production strategies: impacts on emissions and windfall profits

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Basic project information

Project description

In this project we utilize a long-run oriented Real-Time Price based simulation model to analyze the strategic behavior of hydropower producers in the Nordic electricity market framework. From earlier literature we know that markets with a significant role of hydropower stations are susceptible to the abuse of market power. We analyze through different scenarios how different hydropower production strategies affect total annual energy consumed, prices, and capacity structure. We also analyze the relation between different strategies and emissions, costs and windfall profits. Finally we draw some policy conclusions.

Additional information

Research Specialist Maria Kopsakangas-Savolainen, Finnish Environment Institute SYKE, forename.surname@ymparisto.fi

Published 2013-04-24 at 10:12, updated 2015-02-05 at 10:46