Research of the Features of The Electricity Market

Abstract

The article describes features of the electricity market, determined by the specificity of the circulating product. It is shown that electricity as a specific product, which is characterized by the demand inelasticity, continuity of the production and consumption processes, impossibility of accumulation and storage, standardized product range, etc., determines the basic characteristics of the electricity (power and capacity) market. Herewith, capacity can be considered as a related product. The level of competition in the electricity market is largely dependent on the presence of restrictions in the choice of markets; differentiation of the products; choice of fuel resources and their suppliers. In addition, an essential condition for the electricity market operation is the availability of a related infrastructure. The main electricity market models are described, which have been practically implemented in the world: the markets, in which only electric power is sold, the markets with capacity turnover, and the markets differentiation depending on the model of their organization. A brief description of the structure of the domestic market of the countries demonstrating the successful experience of the electricity market operation is provided. At the same time, a distinctive feature of the current Russian electricity market is the incompleteness of its architecture, difficulties in ensuring its competitiveness due to the allocation of a minimum number of price zones, which are characterized by a large number of suppliers and purchasers of electricity, a developed grid infrastructure. In addition, the so-called non-price zones, in which the prevailing conditions hinder organizing a full-fledged market economy, are highlighted. The conclusion about the need for further study of the electricity market operation in different regions in order to make use of the positive experience is made.

DOI: 10.5901/mjss.2015.v6n4s4p190