Abstract
Demand response may provide substantial flexibility to operation of future power systems. In this paper we focus on the capability to shift load across time steps, and formulate a set of linear constraints suitable for representing this capability in a power market model. The formulation is tested in a large-scale case study for a scenario of the future Northern-European power system. The results demonstrate the impact of load shifting on power price formation and capture prices for hydro-, wind- and solar power producers in the Nordic market.