Financing electricity for all programs has been a main barrier to achieve universal energy access. In this paper, we investigate the financing mechanisms of China’s electricity for all programs with a focus on the last mile problem, and we find that central investment, cost sharing, and public-private partnerships are essential for China’s success in such…
Volume 8
Solar Microgrids and Remote Energy Access: How Weak Incentives Can Undermine Smart Technology
This paper documents the challenges faced by one company, Gram Power, installing and operating solar microgrids in rural India. We begin by summarizing the existing literature on best practices for microgrid deployment. Although Gram Power followed nearly all of these recommendations, the company nevertheless faced significant challenges. First, demand for solar microgrids was very limited,…
Letter to the Editor on Abada, et al. (EEEP 8(1))
What Models Tell us about Long-term Contracts in Times of the Energy Transition
Uncertainty is a major hindrance to attracting investment for the energy transition. Yet European market design is mainly discussed with a focus on short-term efficiency. Based on computational results from market models for gas and power we derive lessons on the importance of contracts and the implications of incomplete markets. Specifically, we show that short-term…
Cost-efficiency of the EU Emissions Trading System: An Evaluation of the Second Trading Period
Cap and trade systems are considered to be one of the most cost-efficient options to achieve emission reduction targets. This paper extends the literature on the evaluation of emissions trading systems (ETS) by providing insights into the methodology of the ex-post evaluation of cost-efficiency. Based on data from the second trading period of the EU…
The Role of Efficient Pricing in Enabling a Low-Carbon Electricity Sector
Producers and consumers will make the investments and innovations necessary to transition to a low carbon electricity supply industry only if they are compensated for their efforts. In the absence of explicit government support for these activities, this outcome will occur only if wholesale and retail prices provide this compensation. Efficient wholesale and retail pricing…
Energy Market Integration and Electricity Trade
This paper explores energy trade in the electricity market by undertaking a comprehensive empirical analysis of the effect of Europe’s progressive Energy Market Integration (EMI). Its aim is to quantify the effect of EMI on electricity trade in Europe in order to derive corresponding evidenced- based policy implications. The empirical strategy employs standard goods trade…
Do Almost Mature Renewable Energy Technologies Still Need Dedicated Support Towards 2030?
The discussion on whether and how to continue support for almost mature renewable electricity (RES-E) technologies, such as onshore wind and PV, has recently intensified. In this paper we analyze arguments in the literature in favor and against the phase-out of renewables support in the context of increasingly competitive RES-E technologies. We conclude that there…
The Impact of Policy on the Efficiency of Solar Energy Plants in Spain: A Production-Frontier Analysis
The analysis of the impact of remuneration schemes for renewable electricity, and solar photovoltaics (PV) in particular, on the effectiveness of renewable energy deployment and the total costs of support has received a considerable attention in the past. In contrast, the literature on the effects of deployment support on productive efficiency and, more specifically, on…
Greener and Fairer: A Progressive Environmental Tax Reform for Spain
Environmental externalities call for the use of environmental taxes to get prices right and thereby reduce environmental pressures. To date, however, the Spanish government makes only limited use of environmental taxes. One major reason for the policy reluctance are concerns on the regressive impacts of environmental taxes. We argue that policy can hedge against these…