Modelling imperfect competition on the nordic electricity market with Balmorel

The present document is the result of a research project partly financed by the Danish Energy Research Program during 2003 - 2005, and carried out by RAM-loese edb, Elkraft System and COWI. The aim of the project was to improve the possibilities for analysing imperfect competition on the Nordic electricity spot market by developing the Balmorel model to permit simulation of such issues. The present report describes the Nordic electricity market and gives an introduction to market power issues and analyses. The report further describes the developed market power simulation module of the Balmorel model and presents illustrations of the application of the model on the Nordic spot market. The Balmorel model itself, including the market power simulation module, further documentation and case studies are available at www.Balmorel.com. (au)