<abstract xmlns="http://www.w3.org/1999/xhtml"><p>The Polish energy market gained its competitive character in late 1990s. At that time in majority of European countries a new law was enacted (in Poland – in 1987), which enabled the creation of internal energy markets. The Polish Power Exchange has been functioning since the end of 1999. However, from the very onset it has constituted a vital component of under grounding liberalization of electricity market. Since it was created the Polish Power Exchange has served as a market mechanism for setting objective energy market price. Support and control of the Polish Financial Supervision Authority guarantee the security of concluded transactions. The spot energy market was created as the first one and has functioned according to the rule of the double auction. The model of Sadrieh will be used for the description of the auction rules applied to the spot energy trade on the Polish Power Exchange. Furthermore, an algorithm on the basis of which it is possible to forecast transaction prices is presented. The effectiveness of this algorithm will be compared with other traditional methods of forecasting transaction prices.</p></abstract>

The Polish energy market gained its competitive character in late 1990s. At that time in majority of European countries a new law was enacted (in Poland – in 1987), which enabled the creation of internal energy markets. The Polish Power Exchange has been functioning since the end of 1999. However, from the very onset it has constituted a vital component of under grounding liberalization of electricity market. Since it was created the Polish Power Exchange has served as a market mechanism for setting objective energy market price. Support and control of the Polish Financial Supervision Authority guarantee the security of concluded transactions. The spot energy market was created as the first one and has functioned according to the rule of the double auction. The model of Sadrieh will be used for the description of the auction rules applied to the spot energy trade on the Polish Power Exchange. Furthermore, an algorithm on the basis of which it is possible to forecast transaction prices is presented. The effectiveness of this algorithm will be compared with other traditional methods of forecasting transaction prices.

An Experimental Analysis of Price Formation on the Polish Power Exchange

Warsaw University of Technology, Faculty of Management, Narbutta 85,02-524 Warszawa, Poland

Folia Oeconomica Stetinensia

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

{"article-title":"An Experimental Analysis of Price Formation on the Polish Power Exchange"}

The Polish energy market gained its competitive character in late 1990s. At that time in majority of European countries a new law was enacted (in Poland – in...

An Experimental Analysis of Price Formation on the Polish Power Exchange

Online veröffentlicht: 30. Apr. 2016

Seitenbereich: 115 - 127

Eingereicht: 28. Apr. 2015

Akzeptiert: 05. Nov. 2015

DOI: https://doi.org/10.1515/foli-2015-0039

Schlüsselwörter
double auction, to forecast transaction price, energy market, stochastic algorithm

© 2015 University of Szczecin

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

An Experimental Analysis of Price Formation on the Polish Power Exchange

Online veröffentlicht: 30. Apr. 2016

Seitenbereich: 115 - 127

Eingereicht: 28. Apr. 2015

Akzeptiert: 05. Nov. 2015

DOI: https://doi.org/10.1515/foli-2015-0039

Schlüsselwörterdouble auction, to forecast transaction price, energy market, stochastic algorithm

© 2015 University of Szczecin

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

Schlüsselwörter
double auction, to forecast transaction price, energy market, stochastic algorithm