Competitive Electricity Markets And Sustainability (Google eBook)

François Lévêque

Edward Elgar Publishing, 2006 - 302 pages

This book delivers its aim of providing a coherent and integrated treatment of a closely inter-related set of investment problems, elegantly, concisely, and with the right blend of theory and evidence that will make the book a standard reference in the field for many years to come. Competition and Regulation in Network Industries Pre-reform electricity markets had monopoly generation and transmission companies that were well placed to coordinate investment in generation and transmission, financed by captive customers. Reforms to create competitive electricity markets and regulated transmission grids have transformed the investment problem, raising concerns that the new actors will be unable to deliver timely, coordinated least-cost investments while retaining the virtues of workably competitive markets. This book brings together a distinguished set of experts who set out how a liberalized electricity industry could function, and confront the theory with evidence. The three parts cover investment in generation, in transmission, and how they may be coordinated. Its clarity and coverage make it an essential primer for policymakers, industry investors, and students of this fascinating reform experiment. David Newbery, University of Cambridge, UK This book responds to the opening up of electricity markets to competition, which has completely changed the nature of power generation. The building of new generation and transmission capacity and the setting of the energy mix between nuclear, gas and renewable resources are mainly left to private initiative and investors. The authors and the editor of this book explore whether or not market forces offer a sustainable future for electricity generation. They employ economic theory and method to answer questions such as: Will the market be able to ensure adequacy of generation capacity and security of supply? Can price signals from future electricity markets lead to an acceptable level of investment for society? How can market and public intervention combine to deliver the right signal to invest in expanding and reinforcing the grid? How can two complementary investments such as the building of power plants and the expansion of the network be coordinated successfully? With a focus on the EU and US liberalised electricity markets, these questions, and others, are answered by leading thinkers in the field, and offer a much-needed assessment of the long-term consequences of liberalisation.

Contents

• an overview: 1
• PART I Investment in generation: 19
• 2 Investment and generation capacity: 21
• 3 Generation technology mix in competitive electricity markets: 54
• PART II Investment in transmission: 85
• 4 Problems of transmission investment in a deregulated power market: 87
• 5 Patterns of transmission investments: 131
• PART III Coordination between investments in generation and transmission: 185
• 6 Longterm locational prices and investment incentives in the transmission of electricity: 187
• 7 Compatibility of investment signals in distribution transmission and generation: 230
• Index: 289

Popular passages

Page ix - ... monopolies. These infrastructure monopolies often are vertically integrated and provide services that are (arguably) natural monopolies as well as services that are potentially competitive but require access to bottleneck ("essential") monopoly network facilities to make competition feasible. Paul L. Joskow is Elizabeth and James Killian Professor of Economics and Management at the Massachusetts Institute of Technology. Annual World Bank Conference on Development Economics 1998 ©1999 The International...‎

Page 129 - Paul L. Joskow and Jean Tirole, "Transmission Rights and Market Power on Electric Power Networks," Rand Journal of Economics, 31(3) Autumn, 2000.‎

Page 84 - ... and Port Efficiency. Inter-American Development Bank Research Department. Mimeo. Millan, Jaime. 2001. Deregulated Power Markets Are Facing Problems on Both Sides of the Border, but Are the Problems alike? Infrastructure and Financial Markets Bulletin 7(1). Inter American Development Bank. Newbery, D. 2000. Privatization, Restructuring, and Regulation of Network Utilities. Cambridge, MA: MIT Press. Nombela, G., and L. Trujillo. 1999. Privatization and Regulation of the Seaport Industry. Universidad...‎

Page 53 - Sensitivity reserve margin to factors influencing investment behaviour in the electricity market of England and Wales, Energy Policy 29,420-429.‎

Page 90 - It would be possible to analyze these studies in their parts, but that is beyond the scope of this chapter. It should be noted that the word "case study...‎

Page 128 - The competitive effects of transmission capacity in a deregulated electricity industry.‎

Page 52 - Blumstein, C., Friedman, L., and Green, RJ (2002), 'The History of Electricity Restructuring in California', Journal of Industry Competition and Trade, 2( 1 -2), 9-38.‎

Page 84 - A Survey of Welfare Economics," in American Economic Association and Royal Economic Society, eds., Surveys of Economic Theory, vol.‎

Page 228 - Electric Grid Investment under a Contract Network Regime", Journal of Regulatory Economics, vol 1 0, no 1 , July, pp 6 1 -79.‎

Page ix - Technology (MIT) and Director of the MIT Center for Energy and Environmental Policy Research. He received a BA from Cornell University in 1968 and a PhD in Economics from Yale University in 1972. Professor Joskow has been on the MIT faculty since 1972 and served as Head of the MIT Department of Economics from 1994 to 1998. At MIT he is engaged in teaching and research in the areas of industrial organization, energy and environmental economics, competition policy, and government regulation of industry....‎

Bibliographic information

• Title: Competitive Electricity Markets And Sustainability
• Author: François Lévêque
• Editor: François Lévêque
• Contributor: François Lévêque
• Edition: illustrated
• Publisher: Edward Elgar Publishing, 2006
• ISBN: 1845429214, 9781845429218
• Length: 302 pages
• Subjects: Business & Economics / Commerce; Business & Economics / Industries / Energy; Business & Economics / Marketing / General; Business & Economics / Marketing / Industrial; Competition; Demand-side management (Electric utilities); Electric utilities; Electric utilities/ Finance; Finance; Science / Energy