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CenSES annual report 2011
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Linda Rud (NHH). Photo: Sigurd Aarvig
Researcher Linda Rud at NHH and SNF is investigat-
ing the new situation in the energy market where
a surplus of balancing power has been replaced by
scarcity as a result of higher demand for balancing
power. One of the questions she and collegues at
NHH, SNF, NTNU and SINTEF is looking at in the pro-
ject Intermittent Renewables, Balancing Power and
Electricity Market Design (INTREPED), is whether to-
day’s price mechanisms give the right incentives to
meet the new challenges or if the price mechanisms
should be redesigned.
INTREPED aims to contribute in developing a Nordic
power market which effectively maintains the exist-
ing Norwegian power resources and contributes in
integrating and increasing the use of new, renew-
able resources in Europe and Norway. Furthermore,
it aims to contribute in ensuring that the market is
given incentives for investing long-term in power
production, infrastructure, and measures for con-
sumers which promote financial and environmental
efficiency and security of supply.
RA3 consists of three work packages:
- WP1 Electricity market design and economic
incentives
- WP2 National policy: Regulation, incentives and
efficiency
- WP3 Regional economic implications of energy
policies
Research in 2012
Empirical Research on Electricity Markets
One focus of ongoing research is obtaining empiri-
cally driven results on the effects of increased re-
newable energy on the Nordic electricity market as
well as the effects of subsidies for renewable energy.
In 2012 an empirical paper was accepted in the En-
ergy Journal showing how wind power in Denmark
already relies heavily on Norwegian hydropower.
In addition, a paper was provisionally accepted to
the same journal showing how changes in subsidy
policy can lead to early scrapping of wind turbines.
RA3 Economic Analysis
In 2012 an empirical research project was started to
explore the role of short-termmarkets, like the Nor-
dic Elbas market, in ameliorating wind power fore-
casting errors. In theory, a short termmarket should
be helpful in conveying information and incentives
related to intermittency and forecasting errors, but
how suitable is the design and what are the indi-
cations of its actual functionality relating to these
emerging challenges? Some surprising empirical
Should the price mechanisms be redesigned?
RA-leader Gunnar Eskeland and PhD candidate Patrick
Narbel (NHH). Photo: Sigurd Aarvig