The price of flexibility in electricity markets

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Subhojit Biswas, Bahar Çavdar, Alfredo Garcia, Joseph Geunes

Published: 01 Oct 2025, Last Modified: 11 Oct 2025CrossrefEveryoneRevisionsCC BY-SA 4.0
Abstract: Highlights•Forward premium is shown to be flexibility premium in electricity markets.•Arbitrageurs reduce the forward premiums, increasing market efficiency.•Arbitrageurs cannot eliminate the forward premiums due to market risks.