As electricity systems transition toward more variable renewable energy, flexible demand has emerged as a critical tool for grid management. Yet a fundamental question remains: are emerging smart technologies sufficient to unlock demand response, or does human behavior remain the critical...

In addition to self-production and individual disconnection from the national grid, the ongoing decentralization of the electricity market increasingly relies on energy-sharing mechanisms such as energy communities (ECs). This paper presents a parsimonious model that captures key features of the...

Fabra and Imelda (2023) study how the method of payment for renewable energy can reduce the ability of energy producers to exert market power in electricity markets. Their theoretical model provides predictions for dominant and fringe firm behavior under incentives using fixed prices or market...

Renewable energy installations are rapidly gaining market share due to falling technology costs and supportive policies. Meanwhile, the energy price crisis resulting from the Russian-Ukrainian war has shifted the energy policy debate toward the question of how consumers can benefit more from the...

Many long-term investment planning models for liberalized electricity markets either optimize for the entire electricity system or focus on confined jurisdictions, abstracting from adjacent markets. In this paper, we provide models for analyzing the impact of the interdependencies between a core...

We examine investments in power generation projects under policy uncertainty, when the investor has the choice between two alternative technologies, a gas-fired plant and a wind plant. Increased risk of subsidy withdrawal reduces the payoff from and postpones investments in the wind technology....

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...

The dominant focus of much policy attention of late has been on the suitability of electricity market reform carried out under the ‘standard' or prescriptive approach – the end point of which is market liberalization – for the integration of intermittent renewables. There is now a growing...

After eight years, Ontario's green energy policies have yielded moderate environmental gains while drastically increasing energy prices, says a new report from the C.D. Howe Institute. In “Ontario's Green Energy Experience: Sobering Lessons for Sustainable Climate Change Policies” author...