Decarbonization of the electricity sector, and expanding it to facilitate decarbonization of transportation, heating, and other energy applications primarily using fossil fuels, is an important step in mitigating climate change. A widely advocated step in that direction is long-term planning to...

Resolving the resource adequacy problem has been usually entrusted to the imposition of some kind of long-term capacity requirements or to forward markets. The Operating Reserve Demand Curve (ORDC), which is linked to short-term market conditions and does not require central planning, has been...

This article explores key market design issues to be addressed in future electricity markets dominated by intermittent renewable generation with near zero private marginal costs for generating electricity. Changing technology mixes will change market outcomes, but they do not change the...

Many models in energy economics assess the cost of alternative power generation technologies. As an input, the models require well calibrated assumptions for the cost of capital or discount rates to be used, especially for renewable energy for which the cost of capital differs widely across...

Research on electricity futures markets has to date not explored the role that market liquidity may play in determining risk premia. Further, no detailed empirical examination of both liquidity and risk premia in the New Zealand electricity futures market are discernible. Using data from October...

This study examines a field experiment in Texas that includes pricing and informational interventions to encourage energy conservation during summer peak load days when the social cost of generation is the highest. We estimate that our critical peak pricing intervention reduces electricity...

We analyze the effects of commonly employed renewable compensation policies on firm behaviorin an imperfectly competitive market. We consider a model where firms compete for renewablecapacity in a procurement auction prior to choosing their forward contract positions and competingin wholesale...

We examine the role of information transparency in Alberta's wholesale electricity market. Using data on firms' bidding behavior, we analyze whether firms utilize information revealed in near real-time through the Historical Trading Report (HTR), which is released 10 minutes after each hour and...

State-regulated investor-owned utilities serve over 70 percent of electricity to final end-use retail consumers in the U.S. Prior to the 1990s, all states used a “cost of service (COS)” regulation regime in which investor-owned utilities were allowed to recover prudently incurred costs plus...

The pandemic's impacts on European electricity markets have been enormous, especially in countries with abundant low marginal costs of production like France. This article provides an in-depth quantitative study of the impacts of the crisis on the French electricity sector. During the first...