China's electricity sector has experienced substantial efficiency improvement during the last one and a half decades. The recent literature has mostly attributed the efficiency improvement to the 2002 unbundling reform with little attention paid to the large scale retrofitting process introduced...

Very tight generation capacity (‘underinvestment’) in competitive electricity markets is a major concern to policymakers. Employing a model with endogenous capacity, capacity mix, operations and with uncertain demand we show that ‘underinvestment’ is due to the rational (non-abusive)...

The use of biomass as a source of energy has been identified as a viable option to diminish reliance on fossil fuels. We parameterized the effect of selected internal (e.g. coal-fire presence), external (e.g. price and renewable energy mandates) and location (e.g. biomass availability,...

This paper uses high frequency spot price data from eight wholesale electricity markets in Australia, Canada, and the United States to estimate realized volatility and the frequency of price spikes. I find similar levels of realized volatility in Australia and North America, with estimates...

This research tests the impact of changes in fuel price to explain fuel use by electric utilities. We employ a three-stage least squares model that explains changes in fuel use as a function of changes in three fuel prices. This model is repeated across sub-samples of data aggregated at the...

In a deregulated market, the decision to add generation rests with private investors. This paper evaluates how generator profits are affected by increasing wind generation. Using hourly historical data for the Irish Single Electricity Market, we simulate new series of electricity prices,...

Renewable Energy Sources (RES) are likely to continue the upward trend observed in the past decade. The change from dispatchable generation to an environment in which Independent System Operators (ISOs), Regional Transmission Operators (RTOs), Load Serving Entities (LSEs) and consumers...

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...

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...