An Analysis of Colombian Power Market Price Behavior from an Industrial Organization Perspective

We analyze the behavior of spot prices in the Colombian wholesale power market, using a series of models derived from industrial organization theory -- We first create a Cournot-based model that simulates the strategic behavior of the market-leader power generators, which we use to estimate two industrial organization variables, the Index of Residual Demand and the Herfindahl-Hirschman Index (HHI) -- We use these variables to create VAR models that estimate spot prices and power market impulse-response relationships -- The results from these models show that hydroelectric generators can use their water storage capability strategically to affect off-peak prices primarily, while the thermal generators can manage their capacity strategically to affect on-peak prices -- In addition, shocks to the Index of Residual Capacity and to the HHI cause spot price fluctuations, which can be interpreted as the generators´ strategic response to these shocks

• Autores: Duarte Venslauskas, Ona; García Rendón, John J.
• Fecha de publicación: 2015
• Institución: Universidad EAFIT
• Repositorio: Repositorio EAFIT
• Idioma: eng
• OAI Identifier: oai:repository.eafit.edu.co:10784/9166
• Acceso en línea: http://hdl.handle.net/10784/9166
• Palabra clave: L13; L19; L94; Modelos Cournot; Índice de Herfindahl - Hirschman; Modelos vectoriales; ENERGÍA ELÉCTRICA - COLOMBIA; DEMANDA DE ENERGÍA ELÉCTRICA; Electric power - Colombia
• License: Copyright (c) 2015 Ona Duarte Venslauskas, John J. García Rendón