Showing 1 - 10 of 10
Investment in electricity networks, as regulated natural monopolies, is among the highest regulatory and energy policy priorities. Given the large scale of required investments in the coming years, impelled by the need for decarbonising the electricity sector, identifying investment drivers of...
Persistent link: https://www.econbiz.de/10010729016
Three years after the controversial change of the British market design from compulsory Pool with capacity payments to decentralised energy-only New Electricity Trading Arrangements (NETA) market framework, we compare the two designs in terms of investment incentives. We review the biases of the...
Persistent link: https://www.econbiz.de/10005783839
Merchant electricity transmission investment is a practically relevant example of an unregulated investment with monopoly properties. However, while leaving the investment decision to the market, the regulator may decide to prohibit capacity withholding with a must-offer provision. This paper...
Persistent link: https://www.econbiz.de/10005783840
In this paper, the political dilemma of the deployment of a large-size low carbon technology (LCT) is analyzed. A simple dynamic model is developed to analyze the interrelation between irreversible investments and learning-by-doing within a context of exogenous uncertainty on carbon price....
Persistent link: https://www.econbiz.de/10010699841
This paper estimates the vintage capital model of energy demand and examines operational and investment responses to energy prices at disaggregate level using data from five OECD manufacturing industries. Applying the model to less aggregate level data helps avoiding the distortions from...
Persistent link: https://www.econbiz.de/10008503178
This paper analyzes the effect of energy prices on energy efficiency, separately accounting for operational and investment choices in different sectors. For this purpose, capital stock is characterised by vintages with different intensities of energy use, calculated as a function of...
Persistent link: https://www.econbiz.de/10008528488
Electricity distribution networks are capital intensive systems and timely investments are crucial for long-term reliability of their service. In coming years, in the UK, and elsewhere in Europe, many networks are in need of extensive investments in their aging assets. Also, aspects of energy...
Persistent link: https://www.econbiz.de/10009024891
This paper reviews the limits of the traditional ‘levelised cost’ approach to properly take into account risks and uncertainties when valuing different power generation technologies. We introduce a probabilistic valuation model of investment in three base-load technologies (combined cycle...
Persistent link: https://www.econbiz.de/10005113802
In theory, competitive electricity markets can provide incentives for efficient investment in generating capacity. We show that if consumers and investors are risk averse, investment is efficient only if investors in generating capacity can sign long-term contracts with consumers. Otherwise the...
Persistent link: https://www.econbiz.de/10005113841
This paper discusses unregulated market-based electricity transmission investment by third parties as opposed to regulated investment by designated transmission system operators. The analysis is set against a European and Australian institutional background and focuses on interconnection of...
Persistent link: https://www.econbiz.de/10005113850