Abstract:

Tertiary regulation electric power reserve provides emergency power to stabilize a power system in the case of abrupt short-term decline in the power supply or in the case of spikes in electricity demand. This analysis on a sample of seven European countries shows a different institutional framework, in which system operators choose providers of this reserve, as well as the impact of market size on the efficiency in providing these reserve services.
In 2013, the prices of tertiary regulation power reserve were, in principle, lower in countries where these prices were administratively set and higher in countries where they were determined by the market. Germany was exceptional in this case, where the developed tertiary regulation power reserve market apparently contributed to the very low level of prices of those services. In economically developed countries the prices of positive tertiary regulation power reserves are significantly lower than those of negative tertiary regulation power reserves.
In Slovenia the prices of tertiary regulation power reserves from 2009 to 2013 declined (together with large changes in the structure of this price). In 2013, they were approximately on par with Austria – if we do not take into account the dumping price of a foreign provider on the Slovenian tertiary regulation power reserve market.

Key words: Market Structure and Pricing, Electric Utilities, Energy and Macroeconomics

JEL:  D40, L94, Q43