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We revisit key elements of European power market design with respect to both short term operation and longer-term investment and re-investment choices. For short term markets, the European policy debate focuses on the definition of common interfaces, like for example gate closure time. We argue...
Persistent link: https://www.econbiz.de/10010488271
demand response in these markets. We also model the effect of network tariffs and regulation on endogenous investment into …
Persistent link: https://www.econbiz.de/10012180829
dynamic generation settings. Through application in a stylized two-node network, we find that incentive regulation may perform … motivates further research aimed to characterize optimal regulation for transmission expansion in the context of renewable …
Persistent link: https://www.econbiz.de/10009771877
To date, the distributive implications of incentive regulation on electricity transmission networks have not been … efficiency under price-cap regulation have not yet been identified. To discern these parameters is the motivation for the … price-cap incentive regulation for electricity transmission. We find that a regulator's use of ideal (Laspeyres) weights …
Persistent link: https://www.econbiz.de/10010189844
We analyze the current regulatory regime for electricity transmission in Germany, which combines network planning with both cost-plus and revenue-cap regulations. After reviewing international experiences on transmission investment, we first make a qualitative assessment of the overall German...
Persistent link: https://www.econbiz.de/10011292834
's implementation of incentive regulation in 2009 has a negative impact on total investment, and that firms increase their investments … with the German data. The results show that investments increase after incentive regulation, and that the institutional … specific heterogeneity. It should further include all institutional aspects of incentive regulation to design incentives that …
Persistent link: https://www.econbiz.de/10011373911
with the welfare-maximum benchmark and cases of Transco with cost-plus regulation and no regulation. In all tested cases …
Persistent link: https://www.econbiz.de/10010519927
Power systems with increasing shares of wind and solar power generation have higher capital and lower operational costs than traditional technologies. This increases the importance of the cost of finance for total system cost. We quantify how renewable policy design can influence cost of finance...
Persistent link: https://www.econbiz.de/10011746525
The informationally simple approach to incentive regulation applies mechanisms that translate the regulator’s objective …
Persistent link: https://www.econbiz.de/10011746784
Abstract EU power market design has been focused on facilitating trading between countries and for this has defined interfaces for market participants and TSOs between countries. The operation of power systems and markets within countries was not the focus of these developments. This may have...
Persistent link: https://www.econbiz.de/10011294101