This paper derives efficient pricing formulae for renewable energy Feed-in Tariff (FiT) designs that incorporate exposure to uncertain market prices by using option pricing theory. Such FiT designs are presented as a means to delineate market price risk amongst investors and policymakers when...

Electric and natural gas are the two major sources of energy for residents of Washington State. Several states have adopted a policy whereby utility companies decide on the choice of mixes of resources by incorporating cost effectiveness, conservation and externalities. Externalities could...

Electric power is so vital to both our economic and personal wellbeing that the erstwhile state policy in most of the developing countries, including India, had vested the power industry in the hands of the state as a promotional agency for subsidized supply. However, with the onset of the...

This paper shows how the uncertainty associated to the absence of a post-Kyoto regime regarding Greenhouse Gas mitigation is affecting investments in mitigation activities in the EU electricity sector and, thus, future emissions levels. Based on a wide survey of EU power companies, the paper...

Environmental regulation can be broadly divided into those that follow the top-down and bottom-up approaches. The two approaches have similar objective with respect to environmental protection and sustainability. However, the success with which each approach achieves goals of environmental...

In 2005 the countries of South East Europe (SEE) committed themselves to develop a regional energy market in SEE. The World Bank offered to provide technical assistance and recommendations for the most effective implementation of the electricity wholesale market opening. This paper presents and...

This paper describes and analyzes the Greek Capacity Market or, as named, the “Capacity Adequacy Mechanism”. A detailed description of the recently established mechanism is given, whose design is a hybrid model combining elements from three different designs: the US Capacity Markets, the...

One of the main targets of power market reforms in the world has been price-cost margins. This paper focuses on this issue by looking at the impact of the power market reforms on the convergence of residential and industrial electricity price-cost margins in diverse countries towards their...

A thorough review of twelve recent studies of production costs from different power generating technologies was conducted and a wide range in cost estimates was found. The reviewed studies show differences in their methodologies and assumptions, making the stated cost figures not directly...

The European Union is strongly promoting the adoption of renewable energy sources (RES). This policy relies mostly on environmental reasons, but its promoters also claim that RES subsidies will result into the creation of a significant number of jobs. This papers takes into examination the case...