In this paper we study the potential effects of Real Time Pricing (RTP) of electricity to the need of long-run capacities in the Nordic power markets. A characteristic of the Nordic power market is the large variety of production technologies of which hydro and nuclear power are capacity...

This article analyses the impact of the interplay between the demand response, wind penetration and hydropower in the Nordic power market. We develop a long-term equilibrium model in which the thermal power capacity adjusts to the zero-profit level over varying real-time pricing adoption rates...