Score contribution per author:
α: calibrated so average coauthorship-adjusted count equals average raw count
This paper presents a procedure to assess the impact of a potential liberalisation process of electricity generation before its implementation. We simulate the functioning of a hypothetical day-ahead market in a country where it does not yet exist. Generators’ counterfactual bidding behavior is obtained by matching generating units to others in countries with a day-ahead market, taking into account differences in taxation, environmental policy, and market power. We apply this procedure to simulate an electricity pool in Morocco under alternative scenarios of counterfactual bids. We conclude that generation costs would be lower in any of the scenarios compared to the factual, thereby confirming efficiency gains from restructuring the power industry. We also highlight that market clearing prices would be significantly affected by the existing grid interconnection with Spain.