A shift from zonal to nodal pricing improves the efficiency of system operation. However, resulting price changes also shift surplus across generation and loads at different locations. As individual actors can lose, they might oppose any reform. We explore how allocation of financial...

In 2008, the European Commission investigated E.ON, a large and vertically integrated electricity company, for the alleged abuse of a joint dominant position by strategically withholding generation capacity in the German wholesale electricity market. The case was settled after E.ON agreed to...

Short-term electricity markets are key to an efficient production by generation units. We develop a two-period model to assess different bidding formats to determine for each bidding format the optimal bidding strategy of competitive generators facing price-uncertainty. We compare the results...

Heating and cooling degree days are in common use in conditional demand models, billing analysis, and large-scale energy forecasts. The implications of either choosing an ex-ante base temperature, or scanning over the base temperatures, as suggested in Fels (1986) and recommended by some...

Top-down computable general equilibrium models of energy–economy interactions have a limited representation of the electricity sector, typically using constant elasticities of substitution between generation types. Detailed bottom-up electricity models generally have embedded load duration...

This paper analyzes the impact of load factor, facility and generator types on the productivity of Korean electric power plants. In order to capture important differences in the effect of load policy on power output, we use a semiparametric smooth coefficient (SPSC) model that allows us to model...

Policy makers in a number of countries have proposed or are considering proposing CO2 emission standards for new fossil fuel-fired power plants. The proposed standards require coal-fired power plants to have approximately the same carbon emissions as an uncontrolled natural gas-fired power...

Modelling price formation in electricity markets is a notoriously difficult process, due to physical constraints on electricity generation and transmission, and the potential for market power. This difficulty has inspired the recent development of bottom-up agent-based algorithmic learning...

Incentive regulation in electricity distribution is expected to enlarge its scope, from an input-oriented instrument to one that includes additional, output-based incentives. This creates a potential conflict with more traditional concerns for productive efficiency. In the case of Italy,...

Several countries around the world have introduced reforms to the electric power sector. One important element of these reforms is the introduction of an unbundling process, i.e., the separation of the competitive activities of supply and production from the monopole activity of transmission and...