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- W2768836698 abstract "The National Electricity Market was established in 1998 as a response to theoverall liberalization and restructuring of the Australian electricity sector. Thewholesale market integration effects of this establishment, however, remain to besystematically examined. We use econometric techniques based on pairwise unitroot tests, cointegration analysis and a time varying coefficient model to studythe extent of market integration in the physically interconnected regional marketsbased on daily electricity spot prices. The results from the pairwise unit root testsprovide mixed evidence of price convergence while cointegration analysis doesnot reject the absence of persistent price differences across the physically interconnected regions. The results from the time-varying filtered coefficient modelsuggest that full market integration has not been achieved yet. We empiricallyshow the presence of significant network losses and constraints across the interregional interconnectors in the NEM. Our findings suggest that convergence ingeneration and network ownership, coupled with harmonisation of network regulation and regulatory institutional framework, will be increasingly important factors in improving wholesale market integration across all energy-only markets asthey experience an increase in the share of renewable energy." @default.
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- W2768836698 date "2014-06-15" @default.
- W2768836698 modified "2023-09-23" @default.
- W2768836698 title "Testing for Market Integration in the Australian National Electricity Market" @default.
- W2768836698 hasPublicationYear "2014" @default.
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