Energy economics: Russian evidence

Analysis of energy markets is challenging as it should include both economic and technical issues of market operation. Moreover, the following key features of the energy market (electricity market in the project) have to be taken into account:

• The electricity produced at a specific generating station differs from that produced at other stations only in terms of production costs, i.e. it is a homogeneous good rather than a differentiated one.
• At this stage (at least in Russia), no technologies exist that would allow storing electricity, i.e., consumption of electricity is continuous. Consequently, any model of demand for electricity must account for the configuration of the electrical grid.

In this project given mention features, we develop electricity demand model that allows us to understand what factors influences demand mostly and how it affects price shaping.

• Ozhegov E. M., Popova E.  Demand for electricity and weather conditions: nonparametric analysis / Applied Econometrics. 2017 (in Russian, in print) .
• Popova E. (2015) The impact of interregional transmission line on prices and volumes on Russian electricity market (unpublished manuscript)