Likely failure of electricity deregulation: Explanation with application to Israel

Intermittently renewable energy, optimal capacity mix and prices in a deregulated electricity market

“…In the second stage, after daily demand and sunshinedetermined PV availability become known, each producer selects its daily electricity production, thereby determining the equilibrium market prices. Like many other studies of the electricity sector, we employ the Cournot conjecture to determine equilibrium quantities and prices in the second stage of the game, where electricity is sold simultaneously by all producers to meet market demand (Carpio and Pereira, 2007;Borenstein and Bushnell, 1999;Green, 1996Green, , 2004Newbery, 1998;Tishler and Woo, 2006;Puller, 2007;Smeers, 2005, 2007;Tishler et al, 2008;Bushnell et al, 2008). We show that the optimal solution is very sensitive to PV's sunshine-dependent availability and capital cost.…”

Feasibility of the Liberal Electricity Market Under Conditions of a Small and Imperfect Market. The Case of Lithuania / Liberalios Elektros Energijos Rinkos Tinkamumas Mažos Netobulos Rinkos Sąlygomis. Lietuvos Atvejis

“…Besides, in most cases large electricity markets with numerous different suppliers were analysed, while the functioning of the deregulated market in the case of small countries was hardly addressed. Tishler and Woo (2006) have doubts whether the deregulated market fits for Israel and state that in that case the advantages of the regulated market outweigh those of the deregulated market.…”