Energy Price Formation in Wholesale Electricity Markets

The focus of Working Group C5.28 is on how energy price formation is conducted in the various markets around the world. Seventeen countries or regions responded to the survey created by the Working Group. This paper describes the backgrounds of each of the respondents’ countries or regions, a high-level overview of the market designs as it pertains to price formation, a description of how prices are calculated in each area and then a brief listing of factors that may influence future changes in price formation methodologies in each area.