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April 19, 20260 citationsOpen Access

The Three-Headed Dragon: Electricity, Trading, Analysis

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ICIrina Chuchueva

Key Points

  • The research aims to explore the unique characteristics of the Russian wholesale electricity market and its trading processes.
  • Introduced the concept of electricity as a unique commodity with inelastic demand.
  • Detailed the four trading stages in the market, focusing on bidding and day-ahead auctions.
  • Presented practical price analysis using Thomson Reuters Eikon Power Russia for real data from 2017-2018.
  • Explained how the day-ahead auction optimizes nodal prices.
  • Demonstrated that marginal price changes can be attributed to variations in demand and supply components.
  • Highlighted the importance of thermal generation in pricing dynamics.

Abstract

This paper provides a comprehensive introduction to the Russian Wholesale Electricity Market, which the author characterizes as a "three-headed dragon" consisting of electricity as a unique commodity, multi-stage trading mechanisms, and price analysis methodologies. The first section explains why electricity differs from other market goods due to its inelastic demand and inability to control power flows, and describes how both electricity and capacity markets operate in Russia alongside various participant types. The second section details the four trading stages with special focus on how participants submit bids and how the day-ahead auction determines nodal prices through optimization. The final section presents a practical approach to price analysis using the Thomson Reuters Eikon Power Russia analytical product, demonstrating through real examples from 2017-2018 how marginal price changes can be explained by analyzing demand, supply components, and price-dependent thermal generation.

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Cite This Study

Irina Chuchueva (2026) studied this question.

synapsesocial.com/papers/69e47376010ef96374d8f346https://doi.org/10.5281/zenodo.19626342
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