We propose a joint modeling of spot electricity prices, forwards prices and other derivative prices, using recent developments in discrete time asset pricing methods based on the notions of stochastic discount factor and of compound autoregressive (or affine) stochastic processes. We show that...

Brazil's energy sector has undergone rapid changes over the last several years. A growing economy and increasing power demand has spurred a complete restructuring of the wholesale power market and government privatization, adding uncertainty to the market. After a severe crisis, Lula’s...

The debate over a common European energy policy, its necessity and its establishment has been going on for a number of decades. The discussions have been recently brought back into the spotlight by the evolution of energy market fundamentals and the taking into account of environmental...

This paper aims to compare how two countries are facing the challenges of energy security of supply. Mexico, a member of NAFTA and a neighbour of the United States, has oil resources and is thinking how to answer to the increasing energy demand. France, one of the 27 member states of the...

The pre-liberalized sector provided electricity consumers with a supply at regulated prices. With the liberalization movement, consumers are now faced with a new price risk. The purpose of this paper is to review, firstly the price policy conducted in France since the fifties, and secondly to...

This paper deals with the practical problems related to long-term security of supply in electricity markets in the presence of large-scale wind power development. The success of renewable promotion schemes adds a new dimension to ensuring long-term security of supply. It necessitates designing...

Since the mid 70's, new forms of organizations have emerged in networks industries. The main purpose for changes is to find out a model wich enables the best efficiency in industries wich are not fully ruled by competition. This paper deals with the organization of electricity and natural gas...

The purpose of this study is to use real options theory to answer the following question: Is it necessary, in France, to invest in new nuclear power units or should some of the existing units be decommissioned? The theoretical model developed establishes two price thresholds which determine...

The liberalization of electricity and gas markets clashes against the French economic culture that relies on the state and public monopolies to supply many public services. This explains the resistance against the market opening imposed by EU directives. Nevertheless, the liberalization has had...