I analyze renewable electricity policy in a multinational electricity market with transmission investment. If national policy makers choose support schemes to maximize domestic welfare, then a trade policy motive arises operating independently of any direct benefit of renewable electricity. The...

Due to the 3rd Energy Package of 2009 the regulation of European electricity transmission did change considerably. Before, cross-border electricity issues have been regulated by voluntary contractual agreements between Transmission System Operators. Now, the new-founded Agency for the...

A capacity mechanism next to the energy-only market provides necessary investment incentives that spot markets lack. The adequate capacity mix can only be achieved by accounting for the current transition phase to electricity generation with a growing share of renewables. We show that an...