Nikandrova, ArinaSteinbuks, Jevgenijs2014-08-152014-08-152014-06https://hdl.handle.net/10986/19369Power pools constitute a set of sometimes complex institutional arrangements for efficiency-enhancing coordination among power systems. Where such institutional arrangements do not exist, there still can be scope for voluntary electricity-sharing agreements among power systems. This paper uses a particular type of efficient risk-sharing model with limited commitment to demonstrate that second-best coordination improvements can be achieved with low to moderate risks of participants leaving the agreement. In the absence of an impartial market operator who can observe fluctuations in connected power systems, establishing quasi-markets for trading excess electricity through the kind of mechanism described here helps achieve sustainable cooperation in mutually beneficial electricity sharing.en-USCC BY 3.0 IGOADVERSE SELECTIONAGGREGATE SUPPLYAPPROACHASYMMETRIC INFORMATIONAVAILABILITYBALANCEBARTERCOALCONSUMPTION OF ELECTRICITYCONTRACT ENFORCEMENTCONTRACTUAL AGREEMENTSDEMAND FOR ELECTRICITYDEREGULATIONDISCOUNT RATEECONOMIC BEHAVIORECONOMIC BENEFITSECONOMIC DEVELOPMENTECONOMIES OF SCALEEFFICIENT ALLOCATIONEFFICIENT ALLOCATIONSELECTRIC GRIDELECTRIC POWERELECTRIC POWER GENERATIONELECTRIC POWER SYSTEMSELECTRIC SYSTEMELECTRIC SYSTEMSELECTRICITYELECTRICITY CONSUMPTIONELECTRICITY EXCHANGEELECTRICITY GENERATIONELECTRICITY GENERATION CAPACITYELECTRICITY MARKETELECTRICITY PRODUCTIONELECTRICITY SECTORELECTRICITY SUPPLYELECTRICITY SYSTEMSELECTRICITY TRADEELECTRIFICATIONENERGY DEMANDENERGY ECONOMICSENERGY MARKETSENERGY POLICYENERGY REGULATORY COMMISSIONENERGY SECTORENERGY TRANSMISSIONEXCESS ELECTRICITYFIRST ORDER CONDITIONFIXED COSTSFOSSILFOSSIL FUELGENERATIONGENERATION ASSETSGENERATION CAPACITYGENERATION OF ELECTRICITYGENERATORSGRIDSINFRASTRUCTURE SERVICESMARGINAL COSTSMARKET DISTORTIONSMICROECONOMICSNUCLEAR POWERNUCLEAR POWER PLANTSOPEN ACCESSPEAK DEMANDPEAK DEMAND PERIODSPOLITICAL ECONOMYPOSITIVE PRODUCTIONPOWERPOWER FLOWSPOWER MARKETSPOWER PLANTPOWER PLANTSPOWER POOLSPOWER SECTORPOWER SECTOR REFORMPOWER SHORTAGESPOWER SUPPLIESPOWER SUPPLYPOWER SYSTEMPOWER SYSTEMSPRESENT VALUEPRICE ADJUSTMENTSPRODUCTION OF ELECTRICITYPRODUCTIVITYPUBLIC SECTORRENEWABLE GENERATIONRETAIL ELECTRICITYRISK SHARINGSOCIAL SURPLUSSUNK COSTSSUPPLY OF ELECTRICITYTRANSMISSION CAPACITYTRANSMISSION CONSTRAINTSTRANSMISSION GRIDTRANSMISSION LINESTRANSMISSION ORGANIZATIONTRANSMISSION SYSTEMUTILITIESWIND10.1596/1813-9450-6955