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dynamic generation settings. Through application in a stylized two-node network, we find that incentive regulation may perform … motivates further research aimed to characterize optimal regulation for transmission expansion in the context of renewable …
Persistent link: https://www.econbiz.de/10009771877
We analyze the current regulatory regime for electricity transmission in Germany, which combines network planning with both cost-plus and revenue-cap regulations. After reviewing international experiences on transmission investment, we first make a qualitative assessment of the overall German...
Persistent link: https://www.econbiz.de/10011292834
The informationally simple approach to incentive regulation applies mechanisms that translate the regulator’s objective …
Persistent link: https://www.econbiz.de/10011746784
To date, the distributive implications of incentive regulation on electricity transmission networks have not been … efficiency under price-cap regulation have not yet been identified. To discern these parameters is the motivation for the … price-cap incentive regulation for electricity transmission. We find that a regulator's use of ideal (Laspeyres) weights …
Persistent link: https://www.econbiz.de/10010189844
's implementation of incentive regulation in 2009 has a negative impact on total investment, and that firms increase their investments … with the German data. The results show that investments increase after incentive regulation, and that the institutional … specific heterogeneity. It should further include all institutional aspects of incentive regulation to design incentives that …
Persistent link: https://www.econbiz.de/10011373911
with the welfare-maximum benchmark and cases of Transco with cost-plus regulation and no regulation. In all tested cases …
Persistent link: https://www.econbiz.de/10010519927
A shift from zonal pricing to smaller zones and nodal pricing improves efficiency and security of system operation. Resulting price changes do however also shift profits and surplus between and across generation and load. As individual actorscan lose, they might oppose any reform. We explore how...
Persistent link: https://www.econbiz.de/10010417445
We discuss the implications of two price zones, i.e. one northern and southern bidding area, on the German electricity market. In the northern zone, continuous capacity additions with low variable costs cause large regional supply surpluses in the market dispatch while conventional capacity...
Persistent link: https://www.econbiz.de/10010479927
We analyze the pass-through of cost changes to retail tariffs in the German electricity market over the 2007 to 2014 period. We find an average pass-through rate of around 60%, which significantly varies with demand factors: while the pass-through rate to baseline tariffs, where firms have...
Persistent link: https://www.econbiz.de/10011553026
We revisit key elements of European power market design with respect to both short term operation and longer-term investment and re-investment choices. For short term markets, the European policy debate focuses on the definition of common interfaces, like for example gate closure time. We argue...
Persistent link: https://www.econbiz.de/10010488271