Skip to main content
SpringerLink
Log in

Electronic OTC Trading in the German Wholesale Electricity Market

  • Conference paper
  • First Online:
Electronic Commerce and Web Technologies (EC-Web 2000)

Part of the book series: Lecture Notes in Computer Science ((LNCS,volume 1875))

Included in the following conference series:

Abstract

Recent changes in the German energy policy initiated a deregulation process from a monopolistic to a competitive market, fundamentally changing the market structure, transaction relationships and trading processes. While the mutual exchange of electric energy has been a business activity between vertically integrated utilities for a long time, wholesale electricity trading in an open market only recently started to gain momentum. Electricity becomes a commodity traded at power exchanges and off-exchange on over the counter (OTC) markets. In Germany, the wholesale electricity market is dominated by OTC trading. Trading in OTC markets is usually performed via telephone and facsimile which leads to a limited price transparency, a limited liquidity, an ex ante restricted number of potential market partners and, last but not least, substantial transaction costs. Market participants are therefore searching for new trading mechanisms to circumvent the problems of the current trading processes. The electronization of trading activities promises to reduce the disadvantages of current OTC trading processes through the automation of tasks within the transaction chain. In this context, electronic markets for electricity trading are coordination mechanisms for the market exchange of electricity and electricity derivatives, i. e., a virtual market place where supply and demand meet and trade. An important feature of electronic markets is an automated dynamic pricing which is currently not supported by electronic markets available for electricity trading in the German wholesale market. A concept for an Electronic Electricity Trading System is therefore proposed with a main focus on automated price discovery.

The research presented in this paper is funded by the Deutsche Forschungsgemeinschaft (DFG) under project no. WE 1436/4-1. We would like to thank the four anonymous referees for their valuable suggestions and helpful comments. The authors are responsible for all remaining deficiencies.

This is a preview of subscription content, log in via an institution to check access.

Access this chapter

Log in via an institution
Chapter
USD 29.95
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
eBook
USD 84.99
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
Softcover Book
USD 109.99
Price excludes VAT (USA)
  • Compact, lightweight edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info

Tax calculation will be finalised at checkout

Purchases are for personal use only

Institutional subscriptions

Preview

Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.

References

  1. Meller, E.: Chancen und Risiken der Liberalisierung im Strommarkt. Brennsto Kraft Wärme 7/8 (1998)

    Google Scholar 

  2. Schmidtchen, D., Bier, C.: Liberalisierte Strommärkte. Mohr Siebeck, Tübingen (1997)

    Google Scholar 

  3. Pfa_enberger, W., Münch, D., Salge, K.: Liberalisierung des Strommarktes in Deutschland. In et. al., H., ed.: Liberalisierung des Energiemarktes. Volume 8 of Schriften des Forschungszentrums Jülich, Reihe Energietechnik / Energy Technology., Jülich, Forschungszentrums Jülich, Zentralbibliothek (1999) 113–147

    Google Scholar 

  4. Bundesministerium für Wirtschaft und Technologie: Energie Daten 1999. On-line at http://www.bmwi.de, Bonn (1999)

  5. Finsterbusch, S.: Die Liberalisierung des Strommarktes nimmt Gestalt an. Frankfurter Allgemeine Zeitung(1999)

    Google Scholar 

  6. Preu\er, P.:Stromverkauf an Gro\kunden. In Weizäcker, C., ed.: Energiehandel und Energiemärkte. Volume 30 of Tagungsberichte des Energiewirtschaftlichen Instituts., München, Energiewirtschaftliches Instituts an der Universität Köln, Oldenbourg (1998) 219–241

    Google Scholar 

  7. Drasdo, P., Drillisch, J., Hensing, I., Kreuzberg, P., Nolden, A., Perner, J., Riechmann, C., Schulz, W., Schuppe, T., Starrmann, F., eds.: Konzentration und Wettbewerb in der deutschen Energiewirtschaft. Volume 52 of Schriften des Energiewirtschaftlichen Instituts an der Universität Köln. Oldenbourg, München et. al. (1998)

    Google Scholar 

  8. Gomber, P., Budimir, M., Kosciankowski, K., Urtheil, R.: Elektronisierung des au\erbörslichen Rentenhandels auf Basis von Softwareagenten. In Weinhardt, C., Meyer zu Selhausen, H., Morlock, M., eds.: Informationssysteme in der Finanzwirtschaft. Springer, Heidelberg (1998) 253–267

    Google Scholar 

  9. Frost, J.C.: The Software Acquisition Process. Power Marketers Online Magazine (1999) On-line at http://www.powermarketers.com.

  10. Schmid, B., Lindemann, M.A.: Elements of a Reference Model for Electronic Markets. In Sprague, E., ed.: Proceedings of the 31st Haiwaii International Conference on Systems Sciences (HICSS’98). Number 4 (1998) 193–201

    Google Scholar 

  11. Picot, A., Bortenlänger, C., Röhrl, H.: The Automation of Capital Markets. Journal of Computer-Mediated Commerce 1 (1995) On-line at http://www.ascusc.org/jcmc/vol1/issue3/picot.html.

  12. Schmid, B.: Elektronische Märkte-Merkmale, Organisation und Potentiale. In Hermanns, A., Sauter, M., eds.: Managementhandbuch Electronic Commerce: Grundlagen, Strategien, Praxisbeispiele. Vahlen, München (1999)

    Google Scholar 

  13. Schmid, B.: Elektronische Märkte. Wirtschaftsinformatik 35 (1993) 465–480

    Google Scholar 

  14. Gerke, W.: Computerbörse für den Finanzplatz Deutschland. Die Betriebswirtschaft 53 (1993) 725–748

    Google Scholar 

  15. Picot, A., Bortenlänger, C., Röhrl, H.: Börsen imWandel. Fritz Knapp, Frankfurt am Main (1996)

    Google Scholar 

  16. Weinhardt, C., Gomber, P.: Agent-Mediated Off-Exchange Trading. In Sprague, E., ed.: Proceedings of the 32nd Hawaii International Conference on Systems Sciences (HICSS’99). Number 5 (1999)

    Google Scholar 

  17. Domowitz, I.: Automating the Price Discovery Process: Some International Comparisons and Regulatory Implications. Journal of Financial Services Research (1992) 305–326

    Google Scholar 

  18. Schenk, N.: Informationstechnologie und Börsensysteme. Gabler, Wiesbaden (1997)

    Google Scholar 

  19. Gomber, P.: Elektronische Handelssysteme. Physica, Heidelberg (2000)

    Google Scholar 

  20. Securities and Exchange Commission: Regulation of Exchanges and Alternative Trading Systems, Final Rule, Release No. 34-40760 (1999)

    Google Scholar 

  21. Gerke, W., Rapp, H.W.: Strukturveränderungen im internationalen Börsenwesen. Die Betriebswirtschaft 54 (1994) 5–23

    Google Scholar 

  22. McAfee, R.P., McMillan, J.: Auctions and Bidding. Journal of Economic Literature 25 (1987) 699–738

    Google Scholar 

  23. Zimmerman, R., Thomas, R.J., Gan, D., Murillo-Sachnez, C.: A web-based platform for experimental investigation of electric power auctions. Decision Support Systems 24 (1999) 193–205

    Article  Google Scholar 

  24. Branco, F.: The design of multidimensional auctions. RAND Journal of Economics 28(1997) 63–81

    Article  Google Scholar 

  25. Beam, C., Segev, A.: Automated negotiations: a survey of the state of the art. Wirtschaftsinformatik 39 (1997) 263–268

    Google Scholar 

  26. Sandholm, T.: Automated Negotiation. Communications of the ACM42 (1999) 85–85

    Article  Google Scholar 

  27. Maifeld, T., Sheblé, G.B.: Computer Simulation of an Electric Marketplace Using Artificial Adaptive Agents. In: Proceedings of the 1995 Midwest Electro-Technology Conference. Number 4 (1995) 68–71

    Google Scholar 

  28. O’Hara, M.: Market Microstructure Theory. Blackwell Publisher, Cambridge, Mass. (1997)

    Google Scholar 

  29. Braue, C., Hille, L.: XETRA-Elektronisches Handelssystem am Finanplatz Deutschland. Die Bank (1997) 140–145

    Google Scholar 

  30. Budimir, M., Gomber, P.: Dynamische Marktmodelle im elektronischen Wertpapierhandel. Wirtschaftsinformatik 41 (1999) 218–225

    Google Scholar 

Download references

Author information

Authors and Affiliations

  1. Information Systems, University of Giessen, Licher Str. 70, D-35394, Giessen, Germany

    Stefan Strecker & Christof Weinhardt

Authors
  1. Stefan Strecker
    View author publications

    You can also search for this author in PubMed Google Scholar

  2. Christof Weinhardt
    View author publications

    You can also search for this author in PubMed Google Scholar

Editor information

Editors and Affiliations

  1. IFI, University of Zürich, Winterthurer Str. 190, 8057, Zürich, Switzerland

    Kurt Bauknecht

  2. Department of Computer Science, Purdue University, West Lafayette, IN, 47907, USA

    Sanjay Kumar Madria

  3. Department of Information Systems, University of Essen, Universitätsstr. 9, 45141, Essen, Germany

    Günther Pernul

Rights and permissions

Reprints and permissions

Copyright information

© 2000 Springer-Verlag Berlin Heidelberg

About this paper

Cite this paper

Strecker, S., Weinhardt, C. (2000). Electronic OTC Trading in the German Wholesale Electricity Market. In: Bauknecht, K., Madria, S.K., Pernul, G. (eds) Electronic Commerce and Web Technologies. EC-Web 2000. Lecture Notes in Computer Science, vol 1875. Springer, Berlin, Heidelberg. https://doi.org/10.1007/3-540-44463-7_24

Download citation

  • DOI: https://doi.org/10.1007/3-540-44463-7_24

  • Published:

  • Publisher Name: Springer, Berlin, Heidelberg

  • Print ISBN: 978-3-540-67981-3

  • Online ISBN: 978-3-540-44463-3

  • eBook Packages: Springer Book Archive

Publish with us

Policies and ethics

Search

Navigation