In this event, we discuss key unanswered questions about nodal pricing before looking at alternative actions to improve locational signals in the electricity system in Europe, including via the smarter use of LMPs.
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Locational marginal prices (LMPs) are an important design feature of several well-developed electricity markets, particularly in the US. They involve the calculation of energy prices which reflect congestion and losses at particular nodes in the electricity network. They have been hotly debated in Australia and Great Britain, but not implemented so far.
In this event, we explore whether and how European countries should adopt LMPs.
The author of the paper Locational marginal prices for electricity in Europe? The Untold Story, Michael Pollitt (University of Cambridge) will be joined by Tim Schittekatte (MIT) and Ellen Beckstedde (Vlerick Business School) in the role of discussants.
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