Electricity markets: Price formation explained

Watch Professor of Energy Policy Lion Hirth's lecture on how prices are set and why they constantly change.

How prices are formed on electricity markets (and how they should be formed) is subject to an intensive public debate. In this short explainer lecture, which is part of the energy policy curriculum at Hertie School, Professor Lion Hirth talks you through the economics of electricity markets: how prices are set, why prices change every 15 minutes, and how the gas prices plays out on power markets.

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