For investors, the decision to install photovoltaic (PV) systems largely depends on whether the investment proves worthwhile. Subsidies play an important role in this context. Currently, the German subsidy programme is based on feed-in tariffs: Property owners are guaranteed a fixed price for 20...

The electricity industry is undergoing a transformative evolution driven by three overarching trends: decentralization, digitalization, and decarbonization (3Ds). To ensure access to clean, affordable, and reliable energy for all by 2030 - UN sustainable development goal 7 (SDG7) - countries...

This paper studies the volatility of electricity spot prices in the Nordic market (Sweden, Finland, Denmark, and Norway) under regime switching. Utilizing Markov-switching GARCH (Generalized Autoregressive Conditional Heteroskedasticity) models, we provide strong evidence of nonlinear regime...

European electricity markets are in the midst of unprecedented changes-caused by Russia's invasion of Ukraine and the rise of renewable sources of energy. Using high-frequency data, this paper investigates volatility spillovers across 24 countries in the European Union (EU) during the period...

The U.S. nuclear industry has overcome a challenging period during which low wholesale market prices threatened the survival of nuclear power plants (NPPs). From 2017 to 2019, several U.S. states initiated out-of-market support schemes to bolster the financial conditions of NPPs. This paper...

This paper develops a simple nonparametric test for perfect competition in markets for homogenous goods. The method only requires data on prices and some aggregate of output. We then generalize the method to account for variable capacity and intertemporal production decisions. We apply the...

Prepaid electricity contracts lower enforcement costs but may burden consumers, particularly when market frictions are present. This paper presents the results of a randomized control trial where 2,000 randomly selected, rural Rwandese consumers were offered a line of credit for electricity...

In the 1990s, the World Bank and other development financiers supported a power sector reform framework emphasizing restructuring or unbundling of utilities, creation of regulators, private sector participation (both in terms of financing and managing the operations of power networks and...

Electricity price forecasting has been a topic of significant interest since the deregulation of electricity markets worldwide. The New Zealand electricity market is run primarily on renewable fuels, and so weather metrics have a significant impact on electricity price and volatility. In this...

The profitable exploitation of asset portfolios in the European electricity markets has become more challenging in recent years. This is particularly true for combined heat and power (CHP) generation units that are often facing must-run conditions due to heat demands that need to be satisfied....

The expansion of heat pumps drives the electrification of the heating sector which is important to achieve Germany's ambitious climate targets. This paper examines the impact of heat pumps in combination with thermal storage on the flexibility of the German electricity system in 2030, focusing...

This study examines the static market and welfare effects of splitting the German bidding zone, comparing a two-zone and a three-zone configuration for a 2030 scenario. Using a state-of-the-art grid and market model with explicit representation of frictions in flow-based market coupling and...

Within the transition to climate-neutral energy systems, hydrogen has the potential to support decarbonization of multiple sectors. Just like in electricity markets, volatility in hydrogen supply and process-specific demand may lead to volatile prices in a hydrogen market. This volatility may...

The ongoing transition of our energy systems implies a rise of distributed generators, batteries, and new consumers, including electric vehicles and heat pumps. Previous studies have found that distributed flexibility may substantially benefit wholesale electricity markets, but have neglected...

To ensure security of supply in the power sector, many countries are already using or discussing the introduction of capacity mechanisms. Two main types of such mechanisms include capacity markets and capacity reserves. Simultaneously, the expansion of variable renewable energy sources increases...

To counter the threat of deindustrialization due to soaring energy prices and facilitate a green transition, policymakers have devised new subsidy schemes such as the "bridge electricity price" (BEP). To analyze this, we develop a model, where the principal introduces a subsidy program to...

This study optimizes a local renewable electricity supply system to integrate demand response tactics for powerintensive industry activities. We use a multi-phase optimization framework to design demand response scheduling for continuous production and identify the best configuration for a local...

Governments in low-income countries are increasingly integrating off-grid electricity provision into national electrification strategies, creating novel, decentralized markets for electricity. This paper studies a highly decentralized product that plays an important role in energy access: pay as...

Heterogeneous interconnections, which link regulated electricity markets to liberalised ones, are becoming increasingly important. Several such interconnections are set to be established in the near future especially between European and North African countries (e.g., Tunisia-Italy,...

The energy transition requires significant investment in intermittent renewable energy sources, such as solar and wind power. New generation capacities are generally procured through fixed price contracts, such as power purchase agreements and contracts for difference, or feed-in tariffs. With...

How does electricity market integration affect cross-border electricity flows, wholesale prices and renewable electricity generation? We employ a synthetic control method to contribute to literature on electricity market integration using the 2018 integration of Ireland's Single Electricity...

The simulation of wind power, electricity load, and natural gas prices will allow commodity traders to see the future movement of prices in a more probabilistic manner. The ability to observe possible paths for wind power, electricity load, and natural gas prices enables traders to obtain...

The transition from traditional labor intensive to modern capital intensive production is a key factor for industrial development. Using half a million observations from Indian manufacturing plants, I analyze the effects of a secular decrease in industrial electricity prices through the lens of...

The balancing market for power is designed to account for the difference between predicted supply/demand of electricity and the realised supply/demand. However, increased electrification of society changes the consumption patterns, and increased production from renewable sources leads to larger...