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Electricity market integration and monitoring in Baltics

The European Union regulations regarding wholesale energy market integrity require the transparency in the information regarding electricity market. It is required to apply the market monitoring tools that are commonly used in the European Union, such as RSI index and other market evaluation tools. The use of market monitoring tools became even more important after the North-Western Europe power markets were coupled and power market of 15 countries were connected each to other and synchronized. The focus of this paper is on the detection of market power in the Baltic States. This includes the detection of the potential for market power as well as the actual exercise of market power.