Guest Lecture by Prof. Afzal Siddiqui (Stockholm University)
10.10.2025
On Friday, October 10, 2025, the IEE welcomed Prof. Afzal Siddiqui from Stockholm University for an insightful guest lecture.
Entitled “Industrial Electrification and Market Power in a Hydro-Thermal Power System,” Prof. Siddiqui’s presentation examined how the ongoing electrification of industrial processes and the expansion of renewable energy sources affect market power and price formation in the Nordic power system. Using a Nash-Cournot model with a detailed spatio-temporal representation, he demonstrated that higher industrial electricity demand reduces firms’ market power but leads to higher average prices. When this demand is met by increased onshore wind capacity, prices return to baseline levels—but hydro plants can again exercise market power due to their flexibility.
The lecture offered valuable insights into the interplay of electrification, flexibility, and strategic behavior – key challenges in achieving a sustainable energy transition.
