Market concentration and marketing power among electricity generators in Texas
- Planergy Inc., Austin, TX (United States)
Policy initiatives designed to foster competition among electricity generators in Texas face a special challenge due to the relative isolation of that system. This isolation contributes to high levels of market concentration and market power that could hinder the development of a truly competitive market. This paper examines market concentration and market power in the ERCOT market for electricity generation by calculating the Herfindahl-Hirschman index (HHI) under various assumptions to gauge the degree of market concentration among generators in ERCOT. In addition, some ongoing studies of market power in ERCOT are discussed. The distinction between market concentration and market power is highlighted.
- OSTI ID:
- 320853
- Journal Information:
- Electricity Journal, Vol. 11, Issue 9; Other Information: PBD: Nov 1998
- Country of Publication:
- United States
- Language:
- English
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