Étiqueté : electricity market

Getting out of the perfect storm: towards coherence between electricity market policies and EU climate and energy goals

Cet article a pour objectif : (1) de présenter un diagnostic de la situation actuelle des marchés électriques européens, ainsi que des perspectives de long terme et des changements structurels engendrés par une transition vers un secteur électrique décarboné ; et (2) de proposer un cadre d’analyse des interactions entre les politiques relatives au marché électrique et les politiques de décarbonation aux niveaux des États membres, des différentes régions de l’Union européenne et de l’UE elle-même, afin d’informer les discussions sur le Paquet énergie-climat européen et sur les stratégies climatiques et énergétiques de l’UE.

Capacity mechanisms on Central European electricity markets: Effects on consumers, producers and technologies until 2033

The reduced attractiveness of investments in reliable power plants under conditions of liberalized markets and the transition towards renewable energies has brought a discussion on  capacity policies to Europe. We use a partial equilibrium model to compare important effects of  three basic policies…

Secure and Efficient Electricity Supply

Electricity shortages can paralyse our modern economies. All governments fear rolling black-outs and their economic consequences, especially in economies increasingly based on digital technologies. Over the last two decades, the development of markets for power has produced cost reduction, technological innovation, increased cross border trade and assured a steady supply of electricity. Now, IEA countries face the challenge of maintaining security of electricity supply during the transition to low-carbon economies…

Risk aversion and technology mix in an electricity market

This article analyzes the effect of risk and risk aversion on the long-term equilibrium technology mix in an electricity market. It develops a model where firms can invest in baseload plants with a fixed variable cost and peak plants with a random variable cost, and demand for electricity varies over time but is perfectly predictable…

Pass-through of emissions costs in electricity markets

We measure the pass-through of emissions costs to electricity prices and explore its determinants. We perform both reduced-form and structural estimations based on optimal bidding in this market. Using rich micro-level data, we estimate the channels affecting pass-through in a flexible manner, with minimal functional form assumptions. Contrary to many studies in the general pass-through literature, we find that emissions costs are almost fully passed-through to electricity prices. Since electricity is traded through high-frequency auctions for highly inelastic demand, firms have weak incentives to adjust markups after the cost shock. Furthermore, the costs of price adjustment are small…

Electricity without borders: a plan to make the internal market work

The most straightforward European single energy market design would entail a European system operator regulated by a single European regulator. This would ensure the predictable development of rules for the entire EU, significantly reducing regulatory uncertainty for electricity sector investments. But such a first-best market design is unlikely to be politically realistic in the European context for three reasons…

Regulation of the power sector

Regulation of the Power Sector is a unified, consistent and comprehensive treatment of the theories and practicalities of regulation in modern power-supply systems. Conceptually arranged in four parts, this book addresses both traditional regulatory frameworks and also liberalized and re-regulated environments.

The NOME law: implications for the French electricity market

In December 2010, France approved the law « Nouvelle Organisation du Marché de l’Electricité » (or NOME law) to promote competition in the retail electricity market. In practice, the law allows retailers to buy nuclear production from the incumbent, at a regulated access price. This mechanism works up to a ceiling of 100 terawatt hours, which represents one quarter of the incumbent’s production from nuclear plants…

Measuring energy security

Continuity of energy supplies is a central aspect of concerns about energy security. Although the continuity of supplies can be influenced by a large number of risks, most models only analyse a small subset of risk sources and often neglect interdependencies between them. In this paper we introduce a probabilistic time-series model that quantifies the impact of inter-dependent natural, technical and human risk sources on energy supply continuity…