1. Electricity Network Congestion Pricing: Italian Power Exchange

    Electricity Network Congestion Pricing: Italian Power Exchange

    The first and probably the most relevant constraint to electricity markets is transmission grid capacity. Despite the liberalization of the sector, in many countries congestion continues to be a hindrance for competitive prices. Italy is one such country. Data on day-ahead market prices show a decrease in the last few years which has been principally driven by technological variables. Just think about the fact that Italy covers 38.6% of its power production with renewable energy sources (wind and solar).

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