This paper analyses distributional effects between participants of the EU Emissions Trading System (EU ETS) during its first trading period. To this end, a selection model is formulated and applied to a dataset based on account information and transfer data from the EU Transaction Log (EUTL). Four different ways of adding carbon prices to the…
2018
How Renewable Energy is Reshaping Europe’s Electricity Market Design
We present a systematic review of the challenges to the regulation of electricity markets that are posed by the integration of variable renewable energy sources. System integration is the key to developing the required flexibility, because flexibility options exist at all system levels and within the competitive as well as in the regulated (network) domains….
How Do Low Gas Prices Affect Costs and Benefits of US New Vehicle Fuel Economy Standards?
In their initial benefit-cost analysis of the 2012-2016 passenger vehicle fuel economy standards, the U.S. regulatory agencies estimated that the benefits of the standards would be three times greater than the costs. However, their analysis was based on the high gasoline prices forecasted at the time; after their analysis, expected gasoline prices fell by 25…
Transmission Expansion Benefits: The Key to Redesigning the Regulation of Electricity Transmission in a Regional Context
Achieving a sufficient and efficient development of the transmission grid in the new low-carbon and region-wide coordinated electricity markets being created will be central to their success. This requires setting up the required institutional framework and cost allocation arrangements, which is specially challenging when the relevant market covers several independent countries or administrative areas (like…
Can Simple Regulatory Mechanisms Realistically be used for Electricity Transmission Investment? The Case of H-R-G-V
While simple regulatory mechanisms in the form of price caps have been implemented with success in the telecommunications sectors of many countries, they are much less used in the electricity sector and if so not as a tool to guide transmission investment. This paper takes one particular mechanism from a very abstract concept to an…
Electricity Network Charging in the Presence of Distributed Energy Resources: Principles, Problems and Solutions
This paper discusses the principles of electricity network charging in the light of increasing amounts of distributed generation and the potential for significant increases in electric vehicles or distributed electrical energy storage. We outline cost reflective pricing, traditional public service pricing, platform market pricing and customer- focused business model pricing. We focus on the particular…
Batteries, Interconnectors and Institutions: The Case of South Australia
In South Australia rapid expansion of grid-connected and distributed renewable generation has contributed to the closure of coal-fired electricity production and placed greater reliance on the remaining fossil-based generation and imports on meeting demand when South Australian renewable production is low. Concentrated wholesale markets and gas scarcity now explain higher wholesale electricity prices and lower…
Energy System Transition in the Nordic Market: Challenges for Transmission Regulation and Governance
The energy system in the Nordic countries faces changes driven by increasing integration with the rest of Europe and changes to the generation mix. These developments pose challenges with respect to future network development and operation. We focus on three major aspects: market integration; generation and network adequacy; the need for more flexibility and frequency…
Book Reviews
Electricity (and Natural Gas) Transmission under Transformation – An Introduction
There may exist various factors that could potentially hinder the efficient development of electricity markets, such as poorly defined property rights, incomplete markets, increasing trade of electricity among different control areas, inefficient operation, and maintenance, as well as bottlenecks in transmission capacity due to lack of investment for grid expansion. This introduction to the EEEP-symposium…