Category Archives: Working Papers 2011

EPRG 1126

David Newbery Reforming Competitive Electricity Markets to Meet Environmental Targets EPRG 1126  | Non-Technical Summary | PDF Abstract: The UK and other EU countries are concerned to deliver secure, sustainable and affordable electricity, to meet challenging targets for decarbonisation and renewable energy. The UK Government has consulted and concluded that the present electricity market arrangements… Read more

EPRG 1125

Michael G. Pollitt Lessons from the History of Independent System Operators in the Energy Sector, with applications to the Water Sector EPRG 1125 | Non-Technical Summary | PDF Abstract: This paper examines the lessons from independent transmission system operators in energy in the context of the potential introduction of an independent system operator in the… Read more

EPRG 1124

Michael G. Pollitt and Stephen J. Steer Economies of Scale and Scope in Network Industries: Lessons for the UK water and sewerage sectors EPRG 1124  | Non-Technical Summary | PDF Abstract: Many studies of the water and sewerage industries place significant importance on the benefits of economies of scale and scope and how these relate… Read more

EPRG 1123

Christian Winzer Conceptualising Energy Security EPRG 1123  | Non-Technical Summary | PDF Abstract: Energy security is one of the main targets of energy policy. However, the term has not been clearly defined, which makes it hard to measure and difficult to balance against other policy objectives. We review the multitude of definitions of energy security.… Read more

EPRG 1122

Laura Platchkov, Michael G. Pollitt, David Reiner, Irina Shaorshadze  2010 EPRG Public Opinion Survey: Policy Preferences and Energy Saving Measures EPRG 1122  | Non-Technical Summary | PDF Abstract: This paper presents results of the 2010 Electricity Policy Research Group (EPRG) public opinion survey. The survey examines the energy policy preferences and attitudes of the British… Read more

EPRG 1121

Rabindra Nepal and Tooraj Jamasb Market Integration, Efficiency, and Interconnectors: The Irish Single Electricity Market EPRG 1121  | Non-Technical Summary | PDF Abstract: Interconnections can be an effective way to increase competition in wholesale electricity markets in particular for smaller markets with few actors. This paper quantitatively examines the potentials for interconnections in the Irish… Read more

EPRG 1120

David Newbery Contracting for wind generation EPRG1120  | Non-Technical Summary | PDF Also published in: Economics of Energy & Environmental Policy , 1(2) EPRG 1120 Abstract: The UK Government proposes offering long-term Feed-in-Tariffs (FiTs) to low-carbon generation to reduce risk and encourage new entrants. Their preference is for a Contract-for-Difference (CfD) or a premium FiT… Read more

EPRG 1119

Stephen Littlechild Regulation, customer protection and customer engagement EPRG 1119  | Non-Technical Summary | PDF Abstract: The UK utility regulation framework developed in the 1980s was intended to improve on the restrictive, inefficient and burdensome regulatory approach in the US. But the UK regulatory process has itself now become increasingly burdensome. Meanwhile, utilities and customer… Read more

EPRG 1118

Simon Taylor Can New Nuclear Power Plants be Project Financed? EPRG 1118  | Non-Technical Summary | PDF Abstract: This paper considers the prospects for financing a wave of new nuclear power plants (NPP) using project financing, which is used widely in large capital intensive infrastructure investments, including the power and gas sectors, but has not… Read more

EPRG 1117

Scott Kelly Do homes that are more energy efficient consume less energy?: A structural equation model for England’s residential sector EPRG 1117 | Non-Technical Summary | PDF Abstract: Energy consumption from the residential sector is a complex socio-technical problem that can be explained using a combination of physical, demographic and behavioural characteristics of a dwelling… Read more

EPRG 1116

Laura M. Platchkov and Michael G. Pollitt The Economics of Energy (and Electricity) Demand EPRG 1116  | Non-Technical Summary | PDF Abstract: Economic drivers, technologies and demand side management are keys in understanding the long-term trends of both energy and more specifically electricity consumption. This paper discusses some of the important economics foundations of energy… Read more

EPRG 1115

Chi Kong Chyong and Benjamin F. Hobbs Strategic Eurasian Natural Gas Model for Energy Security and Policy Analysis EPRG 1115 | Non-Technical Summary | PDF Abstract: The mathematical formulation of a large-scale equilibrium natural gas simulation model is presented. Although large-scale natural gas models have been developed and used for energy security and policy analysis… Read more

EPRG 1114

Rabindra Nepal and Tooraj Jamasb Reforming Small Power Systems Under Political Volatility: The Case of Nepal EPRG 1114  | Non-Technical Summary | PDF Abstract: This paper assesses the electricity sector reforms across small power systems while citing Nepal as an example. The on-going political instability and increasing electricity demand make power sector reform in Nepal… Read more

EPRG 1113

Cedric De Jonghe, Benjamin F. Hobbs and Ronnie Belmans Integrating Short-term Demand Response Into Long-Term Investment Planning EPRG 1113 | Non-Technical Summary | PDF Abstract: Planning models have been used for many years to optimize generation investments in electric power systems. More recently, these models have been extended in order to treat demand-side management on… Read more

EPRG 1112

Giorgia Oggioni and Yves Smeers Investment Equilibrium Models under Emission Regulation and Different Energy Price Regimes EPRG 1112 | Non-Technical Summary | PDF Abstract: We consider an electricity market with two consumer segments subject to different price regimes. We formulate the problem of operations and investment in this market as a spatial equilibrium model where… Read more

EPRG 1111

Jin Hooi Chan & David Reiner  Dynamics of Evolution in the Global Fuel-Ethanol Industry EPRG 1111 | Non-Technical Summary | PDF Abstract: We employ a value chain analysis approach to examine the forces shaping the industry structure, entry and inter-firm governance modes. Forty largest global and regional companies in the ethanol manufacturing stage have been… Read more

EPRG 1110

Siobhán McNamara and Michael Grubb The Psychological Underpinnings of the Consumer Role in Energy Demand and Carbon Abatement EPRG 1110 | Non-Technical Summary | PDF Abstract: While policy targeting carbon mitigation has become a priority, the consumer has been sidelined. Within the EU standards and a carbon is price at the industrial level dominate mitigation… Read more

EPRG 1109

Rabindra Nepal and Tooraj Jamasb Reforming the Power Sector in Transition: Do Institutions Matter? EPRG 1109 | Non-Technical Summary | PDF Abstract: This paper quantitatively explores high-level links between power sector reforms and wider institutional reforms in the economy for a set of 27 diverse countries in rapid political and economic transition since 1990. Panel-data econometrics… Read more

EPRG 1108

Philipp-Bastian Brutscher Payment Matters? – An Exploratory Study into Pre-Payment Electricity Metering EPRG 1108 | Non-Technical Summary | PDF Abstract: In this paper we look at the role of pre-payment (in the context of pre-payment metering) for household electricity consumption. Using a matching approach, we find that households paying their electricity up-front tend to consume more… Read more

EPRG 1107

Philipp Koenig Modelling Correlation in Carbon and Energy Markets EPRG 1107 | Non-Technical Summary | PDF Abstract: The paper examines correlations between daily returns of month-ahead baseload electricity, fuel input and carbon emission allowance (EU-ETS) prices for Great Britain. The perspective of a CCGT plant operator is assumed, producing baseload electricity with natural gas and emission… Read more

EPRG 1106

Philipp-Bastian Brutscher Liquidity Constraints and High Electricity Use EPRG 1106 | Non-Technical Summary | PDF Abstract: It is a well established fact that electricity use increases with income. What is less well known is that – despite the positive correlation between electricity use and income – a significant portion of low-income house-holds consume very large amounts… Read more

EPRG 1105

Stephen Littlechild The Process of Negotiating Settlements at FERC EPRG 1105 | Non-Technical Summary | PDF Abstract: Interstate gas pipelines and their customers presently settle about 90% of the rate cases set for hearing before the Federal Energy Regulatory Commission (FERC). This paper sets out the process by which this is achieved, illustrating with the… Read more

EPRG 1104

Tooraj Jamasb and Cristiano Marantes Electricity Distribution Networks: Investment and Regulation, and Uncertain Demand EPRG 1104 | Non-Technical Summary | PDF Abstract: Electricity distribution networks are capital intensive systems and timely investments are crucial for long-term reliability of their service. In coming years, in the UK, and elsewhere in Europe, many networks are in need of… Read more

EPRG 1103

Scott Kelly and Michael Pollitt The Local Dimension of Energy EPRG 1103 | Non-Technical Summary | PDF Abstract: In this paper, we postulate that some of the best opportunities for reducing energy demand and carbon emissions are through stronger involvement and leadership from local government. We show that local government can and do have a significant… Read more

EPRG 1102

Adriaan Hendrik van der Weijde and Benjamin F. Hobbs Planning electricity transmission to accommodate renewables: Using two-stage programming to evaluate flexibility and the cost of disregarding uncertainty EPRG 1102 | Non-Technical Summary | PDF Abstract: We develop a stochastic two-stage optimisation model that captures the multistage nature of electricity transmission planning under uncertainty and apply… Read more

EPRG 1101

Tooraj Jamasb and Helena Meier Energy Spending and Vulnerable Households EPRG 1101  | Non-Technical Summary | PDF Abstract: A sustainable energy policy needs to balance between the reduction of carbon emissions and protection of vulnerable households and avoid a widening of the existing “energy gap” among the consumers. This study investigates energy spending for different… Read more