We develop a theoretical model of long-run investment decisions on capacity in the context of a liberalized electricity … the level of capacity that maximizes social welfare, and compare it to a decentralized outcome. We show that in the … absence of any regulation, private investment decisions on capacity unambiguously lead to a socially sub-optimal outcome, and …

Electricity transmission has emerged as critical for successfully liberalising power markets. This paper surveys the … may be able to increase interconnector capacity, although this is not unproblematic and raises new regulatory issues. A …

During the Summer of 2000, wholesale electricity prices in California were nearly 500% higher than they were during the … explain this increase in wholesale electricity prices. We simulate competitive benchmark prices for Summer of 2000 taking … same months in 1998 or 1999. This price explosion was unexpected and has called into question whether electricity …

This paper explores the empirical effects of competition on technical efficiency in the context of electricity industry … were for the most part unaffected by restructuring, experienced the smallest efficiency gains over the past decade …. Investor-owned utility plants in states that restructured their wholesale electricity markets had the largest reductions in …

a model in which facilities can produce output at a privately known cost up to a previously-determined capacity level …. In such a model, the amount of slack in the firm is shown to be pro-cyclical. Indeed, as capacity constraints become … capacity. …

cheapest energy prices and highest per-capita consumption. Government subsidies based on socio-political objectives have … expensive resources. For now, governments have absorbed the increased costs. Consumers have been insulated from higher prices …-term political stability versus longer term economic sustainability. As energy production reaches a plateau, domestic consumption …

renewables allow the Persian Gulf sheikhdom to meet rising electricity demand without simultaneous increases in conventional … unable to handle a demand peak that extends past sundown. Renewables offer an intermittent electricity supply at a much …

The long-term relationship between the prices of natural gas in the United Kingdom and oil-indexed natural gas in the … capacity extensions since 2005, through both pipeline and LNG regasification capacity, on this long-term relationship will be …