Category Archives: Working Papers 2005

EPRG 0517

Hongliang Yang

Overview of the Chinese Electricity Industry and Its Current Issues

EPRG 0517  | Non-Technical Summary | PDF

Abstract: In China, many ongoing problems in the electricity sector can be traced back to the old ‘centrally planned’ economy. Since the start of liberalization in the 1980s, the clash between a liberalized economy (excluding a few so-called strategic industries) and a centrally controlled electricity industry has gradually become more and more apparent. The Chinese electricity industry is in need of constructive restructuring. In the absence of a universal agreement on optimal industry design, the Chinese government should have a firm and clear understanding of the implications of electricity restructuring for long-term social welfare. Otherwise the electricity industry might, again, be locked into an inferior industry design which would be very costly to change.

Keywords: Chinese electricity industry, reform, electricity policy

EPRG 0516

Stephen Littlechild Beyond Regulation EPRG 0516 | Non-Technical Summary | PDF Abstract: The ‘standard model’ of electricity reform has been refined in many countries but not extended to others. Government is supplanting the role of regulation. Revised calculations suggest that the benefits of UK electricity privatisation were higher than previously estimated and more widely shared… Continue Reading

EPRG 0514

Felix Müsgens, Karsten Neuhoff Modelling Dynamic Constraints in Electricity Markets and the Costs of Uncertain Wind Output EPRG 0514  | Non-Technical Summary | PDF Abstract: Building on models that represent inter-temporal constraints in the optimal production decisions for electricity generation, the paper analysis the resulting costs and their impact on prices during the day. We… Continue Reading

EPRG 0513

Ian Elders, Graham Ault, Stuart Galloway, James McDonald, Jonathan Koehler, Matthew Leach, Efterpi Lampaditou Electricity Network Scenarios for Great Britain in 2050 EPRG 0513 | Non-Technical Summary | PDF Abstract: The next fifty years are likely to see great developments in the technologies deployed in electricity systems, with consequent changes in the structure and operation… Continue Reading

EPRG 0512

Tooraj Jamasb, William Nuttall, Michael Pollitt New Electricity Technologies for a Sustainable Future EPRG 0512  | Non-Technical Summary | PDF Abstract: There is a growing concern over our reliance on conventional electricity sources and their long-term environmental, climate change, and security of supply implications, and much hope is vested in the ability of future technological… Continue Reading

EPRG 0511

Paul Joskow Incentive Regulation in Theory and Practice: Electricity Distribution and Transmission Networks EPRG 0511 | Non-Technical Summary | PDF Abstract: Modern theoretical principles to govern the design of incentive regulation mechanisms are reviewed and discussed. General issues associated with applying these principles in practice are identified. Examples of the actual application of incentive r… Continue Reading

EPRG 0510

David Newbery Climate Change Policy and its Effect on Market Power in the Gas Market EPRG 0510  | Non-Technical Summary | PDF Abstract: The European Emissions Trading Scheme (ETS) limits CO2 emissions from covered sectors, especially electricity until December 2007, after which a new set of Allowances will be issued. The paper demonstrates that the… Continue Reading

EPRG 0509

Fabien Roques, William Nuttall, David Newbery, Richard De Neufville Nuclear Power: A Hedge against Uncertain Gas and Carbon Prices? EPRG 0509  | Non-Technical Summary | PDF Abstract: High fossil fuel prices have rekindled interest in nuclear power. This paper identifies specific nuclear characteristics making it unattractive to merchant generators in liberalised electricity markets, and argues… Continue Reading

EPRG 0508

Karsten Neuhoff, Michael Grubb, Kim Keats Impact of the Allowance Allocation on Prices and Efficiency EPRG 0508  | Non-Technical Summary | PDF Abstract: Successful cap and trade programs for SO2 and NOx in the US allocate allowances to large emitters based on a historic base line for a period of up to thirty years. National… Continue Reading

EPRG 0507

Tooraj Jamasb, Karsten Neuhoff, David Newbery, Michael Pollitt Long-term Framework for Electricity Distribution Access Charges EPRG 0507  | Non-Technical Summary | PDF Abstract: In order to achieve overall economic efficiency, incentive regulation of electricity distribution utilities must address two important and inter-related issues. First, the utilities’ allowed revenues need to be set at correct levels.… Continue Reading

EPRG 0506

Stephen Littlechild Competition and Contracts in the Nordic Residential Electricity Markets EPRG 0506 | Non-Technical Summary | PDF Abstract: The main Nordic residential electricity markets (Norway, Sweden and Finland) effectively opened to retail competition around 1998. They have not been subject to regulatory controls on prices or other contract terms. Between 11 and 29 per… Continue Reading

EPRG 0505

Karsten Neuhoff, Christian Von Hirschhausen Long-term vs Short-term Contracts: A European Perspective on Natural Gas EPRG 0505  | Non-Technical Summary | PDF Abstract: This paper analyses the economics of long-term gas contracts under changing institutional conditions, mainly gas sector liberalisation. The paper is motivated by the increasingly tense debate in continental Europe, UK and the… Continue Reading

EPRG 0503

Gert Brunekreeft, David Newbery Should Merchant Transmission Investment be Subject to a Must-offer Provision? EPRG 0503  | Non-Technical Summary | PDF Abstract: Merchant electricity transmission investment is a practically relevant example of an unregulated investment with monopoly properties. However, while leaving the investment decision to the market, the regulator may decide to prohibit capacity withholding… Continue Reading

EPRG 0502

Tooraj Jamasb, Michael Pollitt Deregulation and R&D in Network Industries: The Case of the Electricity Industry EPRG 0502  | Non-Technical Summary | PDF Abstract: Electricity reform has coincided with a significant decline in energy R&D activities. Technical progress is crucial for tackling many energy and environmental issues as well as for long-term efficiency improvement. This… Continue Reading

EPRG 0501

Paul Twomey, Karsten Neuhoff Market Power and Technological Bias: The Case of Electricity Generation EPRG 0501 | Non-Technical Summary | PDF Abstract: It is difficult to eliminate all market power in electricity markets and it is therefore frequently suggested that some market power should be tolerated: extra revenues contribute to fixed cost recovery, facilitate investment… Continue Reading