Seminar: Finn Førsund, University of Oslo.

Title: Trade in electricity between the countries Hydro and Thermal.

His seminar paper is the attached cap. 6 from his book : "Hydropower Economics ", Springer, 2007.

Abstract: As a rule countries have been self-sufficient in electricity. However, in the last decade exchange of electricity across borders have become more widespread, and EU’s policy is to encouraging a gradual expansion of cross-border trading and integration of electricity markets. It is therefore of interest to study what happens with the price formation at home when borders are opened up for trade in electricity. There is a common international market, Nord Pool, between the Nordic countries since 1996, and trade now takes place between many European countries on a bilateral basis, e.g., France – England, France – Italy (Italy imports about 20% of its electricity), etc. A stylised general equilibrium model of trade of electricity between two countries; Hydro and Thermal, is used to investigate price and quantity consequences under increasingly more realistic assumptions.